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Policies and Procedures

4.52 Long-Term Disability Insurance

Personnel are eligible for disability income protection following one year of employment.

To qualify for LTD benefits, a staff member must be totally disabled for 90 consecutive working days, or until expiration of accrued sick leave, whichever occurs later.

A. Benefits Schedule - Long term disability insurance provides benefits as shown on the following schedule, less any payments received under social security or workers' compensation.

Benefits Schedule

Completed Years of Continuous Service

Percentage of Monthly Compensation

Percentage of Monthly Benefit Allowance

1 year but less than 2

14%

20%

2 years but less than 3

28%

40%

3 years but less than 4

42%

60%

4 years but less than 5

56%

80%

5 years or more. . .

70%

100%


The maximum monthly income which may accrue under the University's long term disability plan, social security, and workers' compensation is $3,150.

In the event the staff member is unable to return to active service because of a disabling condition, the income benefit continues until the June 30 coinciding with or following the date of attainment of age 65 if the disability occurs prior to age 61. Staff members age 61 or over at the time of disability will receive 60 months of benefits (but in no event beyond the June 30 coinciding with or following attainment of age 70).

B. Disability Escalator - A disability escalator provision allows for the monthly income benefit to be increased annually in an amount equal to the social security cost-of-living escalator provision, not to exceed 5% except as may be modified by the "carryover provision." The disability escalator is applied each year on the July 1 coinciding with or following completion of one year of continuous total disability.

Under this program, retirement annuity premiums are continued in force for as long as the disability income is approved. There is no cost to actively serving staff members for disability plan coverage.