HR3610 - Long Term Disability Insurance and Short Term Disability Insurance

1. Institutional Regulations
   1. Long Term Disability Insurance - Employer Paid
      1. An eligible employee may apply for Long Term Disability (LTD) insurance benefits if s/he experiences a lengthy illness or injury during which s/he is unable to perform his/her job duties and is under the regular care and attendance of a physician. An eligible employee is one who is:
         1. A Regular employee;
         2. Actively employed by the College; and
         3. Working at least 30 hours per week for a minimum of 9 months during the 12 months immediately preceding the date of disability or at least 30 hours per week during the number of months worked, if less than 9 months, immediately preceding the date of disability year, or if hired before July 1, 1983, working at least 20 hours per week.
   2. Short Term Disability Insurance - Optional Employee Paid
      1. An eligible employee may apply for Short Term Disability (STD) insurance benefits if s/he becomes unable to work at his/her normal job due to illness or injury and is under the care of a physician. An eligible employee is one who is:
         1. A Regular employee;
         2. Actively employed by the College; and
         3. Working at least 20 hours per week for a minimum of 9 months during a calendar year.
2. Procedures
   1. Employees shall be responsible for contacting Human Resources to obtain the necessary forms when they wish to apply for Long Term Disability or Short Term Disability benefits.
   2. Long Term Disability (LTD)
      1. The LTD benefit shall be 70% of an employee’s basic monthly earnings up to a maximum of $10,000 per month.
      2. The elimination period for eligibility for LTD benefits is 90 calendar days of disability caused by the same or a related sickness or injury which must be accumulated within a 180 calendar day period.
      3. An employee who is applying for LTD benefits shall be retained on the payroll in a pay or nonpay status until completion of the qualifying period or denial of benefits by the carrier.
         1. If LTD benefits are denied and the employee does not return to work when all applicable leave is exhausted, employment with the College shall be terminated.
         2. If LTD benefits are approved, the employee shall exhaust all paid leave and:
            1. Submit a letter of resignation to his/her immediate supervisor; or
            2. Submit a request for a Leave Without Pay (see HR 3765)
         3. If the employee resigns, the immediate supervisor shall initiate a Separation of Employment form and submit it to Human Resources, along with the employee’s letter of resignation. Notification of the separation shall be sent to the appropriate Vice President or other direct report to the President, and, if involving an employee with a continuing contract, to the President.
      4. LTD Benefits
         1. If an employee stays on the payroll and integrates remaining accrued leave, the College shall supplement the disability payment so that the total amount received shall be equivalent to the employee’s salary at the time of disability. Once an employee is approved for LTD, they will no longer accrue leave.
         2. If an employee is receiving Workers Compensation or Social Security benefits, the LTD benefit shall be reduced so that the employee’s total benefit amount does not exceed 70% of his/her monthly earnings.
         3. The duration of LTD benefits shall be according to the Maximum Duration of Benefits schedule set forth in the terms and conditions of the College’s contract with the LTD insurance carrier.
         4. If an employee is approved for LTD, s/he may request a waiver of the basic life insurance premium. The request must be made within the first year of the disability. If approved by the carrier, life insurance shall continue until the employee is no longer disabled or until the employee reaches the Social Security normal retirement age (SSNRA), whichever occurs first.
   3. Short Term Disability (STD)
      1. For employees electing STD on or after September 1, 2010, the STD benefit shall be 66 2/3% of an employee’s weekly salary up to a maximum of $1,000 dollars. The benefit period is a maximum of 13 weeks per illness or injury.
      2. STD shall not require proof of insurability if purchased within 31 calendar days of a new employee’s insurance effective date. An Evidence of Insurability form is required for late entrants.
      3. If purchased after expiration of the initial enrollment period, and the Evidence of Insurability is approved by the company, a 60 day elimination period shall be in effect if the benefit is used within the first year of coverage for illness. Accident benefits will still be paid from the first day.
      4. The payment period for a disability due to an illness shall begin on the 15^th calendar day of continued disability except as noted in C 3 above. The payment period for a disability due to an injury shall begin on the first day.
      5. An employee is not required to exhaust all applicable paid leave before applying for or receiving the STD benefit.
      6. Employees with continuing coverage in effect prior to September 1, 2010, shall fall under the terms and conditions of the plan in effect at the time coverage was elected.

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February 21, 2017

September 1, 2020