Short-Term Disability Policy
This policy applies to eligible employees of Pearson Education, Inc. and NCS Pearson, Inc, and the affiliated operating companies that participate in this Pearson-sponsored policy. This policy does not apply to contractors, vendors or individuals employed by temporary agencies assigned to work at Pearson.
Employees in the following employment categories are eligible for STD benefits after satisfying the 30-day waiting period:
Eligible Employees
- Full-time regular (Casual/Seasonal and Regular employees only)
- Part-time regular working >/=20 hours per week (Casual/Seasonal and Regular employees only)
Limited Term employees are not eligible for STD benefits.
Individuals working in NY, NJ, CA, HI, PR, MA, CO, CT, OR and RI in the following categories (in addition to those categories listed above) may be eligible for state mandated benefits (see Section V):
- Limited Term employees
- Part-time employees working less than 20 hours
- Temporary employees
- All other employees not eligible for STD
Employees must be in an active work status or on an eligible leave of absence (Family & Medical Leave or Personal Leave) to be eligible for benefits under this policy. An employee must meet the definition of disability in order to qualify for STD benefits. You will not be eligible for STD benefits if your illness or injury is the result of an attempt to commit or participate in an assault or felony.
An employee is deemed to be disabled when, as a result of a non-work related illness or injury (including pregnancy and childbirth), the employee is unable to work more than 80% of the regularly scheduled hours of their material and substantial duties of their regular occupation as determined by Lincoln Financial.
The elimination period is the qualifying period before paid STD and is considered part of the STD leave. The elimination period is seven (7) calendar days. During the 7-day elimination period, the first 5 workdays will be charged against the Sick Day Policy. If sick time is unavailable, personal, vacation or unpaid time may be used. Holidays which occur during the elimination period are counted as part of the 7-day elimination period and are paid according to the guidelines of the Holiday Pay Policy.
STD payments begin after the elimination period, upon receipt of appropriate medical documentation and approval by Lincoln Financial, Pearson’s disability administrator.
Upon approval by Lincoln Financial, STD is paid as follows:
- Weeks Paid at 100% = 13 weeks
- Weeks Paid at 66 and 2/3% = 12 weeks
The maximum duration of STD is 26 weeks (which includes the elimination period). The length of the leave is determined by Lincoln Financial based on the medical condition and supporting medical documentation provided by the employee’s physician.
If the employee returns to work and within 30 consecutive calendar days is unable to work again due to the same or related disability, benefits continue from the previous effective date of disability. If the employee returns to work and after 30 consecutive calendar days or more of working is unable to work again due to the same or related disability (or any other disability), STD benefits restart with the seven (7) day elimination period and pay according to the applicable schedule above.
Once the eligible employee has met the 180-day maximum of the STD elimination period, the employee will be eligible to apply for Long-term Disability (LTD).
Employees working in states (CO, CT, OR, NJ, NY, PR, RI, MA or HI) with Temporary Disability Insurance are responsible for applying for those benefits directly through their state agency, except as noted below.
- Employees working in the state of HI will be eligible to receive salary continuation under the provisions of this policy and do not need to file with the state;
- Employees working in CT, CO, OR, NY, NJ and MA will receive their state benefit directly from Lincoln Financial and do not need to apply for state benefits;
- Employees working in CA, PR, and RI are responsible for applying for those benefits directly through their state agency.
STD benefits provided by Pearson will be reduced to coordinate with state disability benefits to provide a total combined benefit not to exceed the benefits provided under this policy whether or not the employee has applied for such state benefits.
This policy does not address leaves of absence for Workers’ Compensation or Family and Medical Leave (FML). However, STD and Worker’s Compensation run concurrently with FML, per the policies.
When an employee’s leave of absence is due to a work-related injury or illness, and the employee is provided with benefit payments from the Worker’s Compensation carrier for time away from work, benefits from this policy will not be granted.
In addition to state mandated benefits, other sources of income (such as – but not limited to – social security, no-fault insurance, railroad pension, veteran’s administration or any third-party benefits) will be deducted from your disability payment if you are collecting payment for the same condition under which you qualify for STD under this policy.
Approvals for disabilities are considered based on the treating physician’s diagnosis and the medical necessity of the individual case, in conjunction with the documentation of the appropriate treating physician. Additional medical records may be requested in order to finalize a decision.
The treating physician must provide documentation proving medical necessity for the employee to be away from work due to the illness or injury. If all applicable documentation has not been submitted, the claim will be closed 15 days (22 days if the leave is FML-related) after the filing of the initial claim. Documentation must include an anticipated date of return whenever possible. If a return date is not available, the documentation must include the date of the next scheduled appointment for the employee with their treating physician.
If a request for a STD leave is denied due to lack of supportive medical evidence, the employee is notified of such denial in writing. The employee has 180 days to either file a formal appeal in writing to Lincoln Financial or submit new medical evidence for review. If the employee does not comply as required above, the employee is deemed to have voluntarily resigned employment.
The Company reserves the right to require any employee receiving STD benefits to submit additional information from the treating physician at any time during the approved benefit period. The Company also reserves the right to require any employee, applying for or receiving STD benefits, to be examined by a physician designated by the Company, at the Company’s expense, to verify an employee’s eligibility for such benefits.
Employees must have a medical release from the treating physician to return to work. The medical release must be provided to the employee’s manager. If no release is provided, the employee is sent home without pay until a release can be obtained.
If the medical release provides for temporary restrictions on the type of work the employee may perform, and the Company is unable to place the employee in a job because of such restrictions, the employee may be returned to leave status, if medically appropriate, until released without restrictions. If the employee cannot be accommodated due to restrictions, and has exhausted their STD benefits, if eligible and properly submitted, the claim will be considered for LTD.
The employee is required to return to work on the release date determined by the treating physician. If the employee does not return to work or contact the company within three (3) business days of medical release, the employee is considered to have voluntarily terminated employment with the Company. If the employee is on an approved STD and is unable to return to work for medical reasons after the end of the 26-week STD period, the eligible employee may apply for LTD benefits. Refer to the LTD Plan for more information.
Every reasonable effort is made to reinstate an employee to their previous position upon return from STD. However, there is no guarantee of a position being available upon return from a medical leave of absence, except as required by Federal and State regulations.
If an employee returning from STD is a qualified individual with a disability, who requires a reasonable accommodation to perform the essential functions of his/her job, the employee should request such accommodation by contacting their HR Business partner. Pearson complies with the Americans with Disabilities Act (ADA), and will take all required actions in this regard.
Generally, employees may not work for other compensation while on STD. In very limited circumstances, employees may be able to work for other compensation outside of Pearson. In those instances, employees are required to coordinate with Lincoln Financial, the Benefits team and their Pearson manager so as not to disqualify themselves from future STD benefits. Differentials, holiday pay, vacation pay or any other additional compensation will not be paid while the employee is on an approved STD leave. Any additional remuneration such as bonuses, commissions and incentives will be paid in accordance with the governing plan document for the respective plan. Merit increases to the employee’s base pay during his/her STD leave will not be effective until the date the employee returns to a full work schedule. Increases will not be made retroactively.
Employees will receive payment via direct deposit. Taxes and regular deductions continue to be taken from any pay received through STD.
Employee benefits continue while the employee is on an approved disability leave. While on STD, vacation time accrues. However, employees may not carry-over unused vacation into the next year and will not receive payment in lieu of taking the vacation time.
Any person who defrauds or deceives Pearson or Pearson’s disability administrator, files a statement of claim containing any false, incomplete, or misleading information is guilty of insurance fraud, which is a crime. Penalties may include imprisonment, fines, a denial of benefits and/or termination from Pearson.
The Company reserves the right to amend, modify or terminate this policy at any time and without advance notice, subject to the requirements of applicable law. Please keep in mind that this STD policy, any changes to it, or any payments to it, or any payments to you under its terms, does not constitute a contract of employment with the Company and does not give you the right to be retained in the employment of the Company.