Purpose

The purpose of this policy is to provide income protection to eligible full-time administrators who experience a non-work-related long-term disability by outlining eligibility requirements, benefit provisions, tax implications, and administrative procedures.

Scope

This policy applies to all full-time eligible administrators of the University regarding Long-Term Disability coverage, including eligibility after one year of continuous service and six months of Short-Term Disability, benefit calculations, taxation options, and the application and approval process administered by the University’s insurance carrier.

Policy

The University’s Long-Term Disability coverage provides income protection in the event of a long-term disability, where the injury or illness is not work-related. For work-related injuries, please refer to Workers’ Compensation Benefits.

Eligibility

The University provides Long-Term Disability coverage at no cost for all full-time eligible administrators. Administrators may elect to pay for their own coverage by payroll deduction to avoid having to pay income tax on any benefits received. Full-time administrators become eligible for benefits once they have worked 1 year of continuous service at the University and have already received 6 months of Short-Term Disability. Eligibility for Long-Term Disability will be determined by the University’s insurance carrier.

Benefits

Long-Term Disability Coverage provides salary replacement of 66.67% of the administrator’s monthly wage base, with a maximum benefit of $9,000 per month throughout a qualifying disability. The duration of benefits is dependent upon the age of the administrator at the time of the disability. For more information, please contact Human Resources.

Long-Term Disability benefits are considered taxable income, pursuant to IRS regulations. Administrators also have the option of paying their own Long-Term Disability Insurance premiums on an after-tax basis. Administrators who pay their own insurance premiums will not have to pay income tax on the benefits received under the plan.

Administration

After receiving 6 months of Short-Term Disability, an administrator may be eligible to receive Long-Term Disability. Administrators will receive an application from Human Resources with instructions on how to submit the application directly to the insurance carrier. The insurance carrier will then determine whether the administrator qualifies for Long-Term Disability.

Related Policies and References

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