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 Liberty Mutual.

Limited Term employees are not eligible to participate in the LTD plan.

Basic LTD Option

The basic LTD option is 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.

Supplemental LTD Option

You can purchase Supplemental LTD which is 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 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 Liberty Mutual. To complete EOI you must:

  • Log in to mylibertyconnection.com. If a first-time user, register using company code PEARSON
  • Click “Complete Evidence of Insurability / Statement of Health”
  • Answer the questions asked
  • Electronically sign and submit
  • Save your confirmation report

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 – but not limited to -Social Security Disability Income (SSDI) or Workers’ Compensation, reduce the benefits paid by the LTD plan.