Long-Term Disability

LONG-TERM DISABILITY INSURANCE

An extended disability can have a significant impact on your finances. Long-term disability (LTD) insurance replaces part of your income if you become disabled and are still unable to work after 180 days. For the first 180 days of your disability, you may be eligible for short-term disability benefits. The short and long-term disability programs are administered by Unum.

LTD coverage is not available to term-of-project full-time and term-of-project short-hour employees.

Basic LTD Options

There are two basic LTD options:

  • A company provided benefit equal to 50% of your monthly pay, up to a maximum benefit of $20,833 per month. This option is fully paid by the company, and any benefits you receive from the plan are subject to federal, state and local income taxes, as well as Social Security (FICA) tax.
  • An employee paid benefit equal to 50% of your monthly pay, up to a maximum benefit of $20,833 per month. Your contribution toward this coverage is made on an after-tax basis, which means that the benefits you receive will not be subject to income tax.

Supplemental LTD Option

You can also purchase Supplemental LTD:

An employee paid benefit equal to an additional 10% of your monthly pay (60% total benefit instead of 50%), up to a combined maximum benefit of $25,000 per month. Your contribution toward this coverage is made on an after-tax basis. If you elect supplemental LTD and employee-paid basic LTD, the benefits you receive will not be subject to income tax. However, if you elect supplemental LTD and company-paid basic LTD, a portion of your benefits will be subject to income tax based on a proration formula. You may wish to check with your tax/financial advisor before making this election.

If you do not elect supplemental coverage when you are first eligible, you will be required to provide evidence of insurability (EOI) subject to approval by the insurance company. Information on how to submit EOI is available on the Benefits website.

You must be disabled as defined by the plan in order to receive benefits. Certain types of additional disability income you may receive, such as Social Security Disability Income (SSDI) or Workers’ Compensation, reduce the benefits paid by the LTD plan.