Disability Insurance
To help provide income protection against the unexpected, the Flexible Benefits Program allows you to choose:
- short-term disability insurance and/or
- long-term disability insurance.
Short-Term Disability Protection
If you choose short-term disability (STD) coverage, this plan will work with other income benefits to replace 60% of your Benefit Salary (in effect during the Plan Year the disability began) up to $800 per week. Other benefits include Social Security, workers' compensation, any other governmental disability programs, any other group disability plans including the State retirement systems, or special injury benefits you are eligible to receive. If these other benefits total more than 60% of your Benefit Salary, the short-term disability plan will not pay for this disability.
HOW STD WORKS
The terms of the STD plan are set forth in the Summary Plan Description for the disability options.
In general:
- If your claim is approved by the insurance company, you are eligible to receive short-term disability benefits after you have been disabled for 30 continuous calendar days or 7 continuous calendar days depending on the coverage level you have chosen.
- A late enrollment penalty may apply for late entrants to the STD plan (employees who do not elect STD when first eligible).
- You may choose whether to use sick leave or receive these benefits. You cannot receive these benefits and sick leave at the same time. You may, however, decide to receive these benefits and save your sick leave for future use.
- Your short-term disability benefits are calculated on the Benefit Salary that is in effect during the Plan Year your disability began, less other income benefits. For example, if your first day of disability is December 3, 2009, your disability benefit will be calculated on the Benefit Salary reflected on your 2009 salary, not your 2010 Benefit Salary.
- Your short-term disability benefits can continue until you recover, return to work, or receive benefits for a maximum of 150 calendar days or a maximum of 173 calendar days, depending on the coverage level you have chosen. The calendar-day maximums are reduced by any days of paid sick leave, donated leave or Special Injury Leave that you use which exceeds the applicable wait period.
- When changing from the 30-day Benefit Waiting Period to the 7-day Benefit Waiting Period, a Pre- Existing clause is applicable. If you have a condition for which you should have sought medical care or which originated prior to the 7-day Benefit Waiting Period effective date, you will be subject to the rules of the 30-day Benefit Waiting Period.
What Is A Late Enrollment Penalty For Late Entrants?
A current employee choosing coverage for the first time or re-enrolling after discontinuing coverage is considered a late entrant. If your STD Disability is caused by an accidental injury, benefits will begin after you have been disabled for 30 continuous calendar days or 7 continuous calendar days depending on the coverage level you have chosen after the benefit waiting period is satisfied for STD. However, for STD late entrants, who become disabled due to Physical Disease, Pregnancy, or Mental Disorder, during the 12-month period after the date your STD insurance becomes effective, benefits will not begin until after you have been disabled for 60 days. For STD late entrants whose disabilities begin after this 12 month period, benefits will start after the benefit waiting period (7 or 30 continuous calendar days) is satisfied for STD.
NOTE: Employees should check with your agency concerning leave usage policies when disabled. Agency policy may impact your eligibility to receive Short-Term Disability benefits.
If you have any questions about eligibility or how the short-term and long-term disability insurance plans work, call 1-888-641-7186.
Enrolling For Short-Term Disability Coverage
Your premiums will be based on your coverage level and Benefit Salary. You pay for this coverage with after-tax premiums. You won't pay taxes on the benefits you receive.
Long-Term Disability Protection
The Flexible Benefits Program's long-term disability (LTD) coverage works with other benefits you are eligible to receive, including Social Security, workers' compensation, other governmental disability programs, any other group disability plans including the State retirement systems, or any special injury benefits you are eligible to receive. The plan assures that your combined disability benefits from all these sources will equal 60% of your pay as shown on your Option Statement, up to $4,000 a month. The plan will pay at least $100 a month, even if your disability benefits from all other sources total more than 60% of your Benefit Salary, up to $4,000 a month, unless you are in an overpayment situation.
How Long LTD Benefits May Be Payable
These benefits will begin after you have been disabled for 180 calendar days and are reduced by any sick leave you use. Long-term disability benefits end when you are no longer disabled or reach age 65, except benefits for disabilities caused by mental disorders, or other limited conditions (excluding schizophrenia, bi-polar or organic brain disease), which are limited to two years. If you become disabled after reaching age 60, however, your benefits could continue for a limited period after age 65.
For the first two years of your disability, you are disabled if you cannot perform your occupation, and earn less than 80% of your monthly Benefit Salary from your employer. After that, you are disabled if you are unable to perform, with reasonable continuity, the material duties of any occupation and cannot earn more than 60% of your monthly Benefit Salary from any employer.