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Long-Term Disability—2018

Long-term disability (LTD) coverage provides benefits in the event you cannot work for a long period of time because of an accident or personal illness.

The LTD plan pays a monthly benefit for as long as you are disabled after you have been continuously disabled for at least 180 days and continuing up to age 65, unless you recover.

You automatically receive LTD coverage in the amount of 50% of your annual base pay at no cost to you.

You may purchase additional LTD coverage so that your total benefit is equal to either of the following:*

  • 60% of annual base pay, purchased on a pre-tax basis
  • 70% of annual base pay, purchased on a pre-tax basis

Or, you can purchase coverage of 65% of annual base pay and pay the full cost on an after-tax basis.

If you pay for optional coverage on a pre-tax basis, your monthly benefit will be subject to income taxes. If you pay for coverage on an after-tax basis, your monthly benefit will not be subject to income taxes; however, you pay the entire cost of coverage.

* Please refer to your summary plan description for a list of items that may offset or reduce your LTD benefit.

If you are actively working and become disabled after you reach age 60, your LTD benefit payments will continue for a period of time that is based on your age when you were placed on disability status, as shown here.

Age at Disability Benefits Continue
Under 60
60 to 69
70 to 74
Over 74
To age 65
To age 70 or for 60 months, whichever is shorter (12-month minimum)
For 12 months
For 6 months

Base Pay

  • Full-time employees: Base pay is your pay minus overtime, bonuses, supplements and other special payments.
  • Part-time employees: Base pay is your current hourly rate times 1,040 hours, minus overtime, bonuses, supplements and other special payments.

Things to Consider

As you determine the right amount of LTD coverage for you and your family, ask yourself these questions:

  • Will the Company-provided 50% coverage be enough to take care of my family if I become disabled?
  • Do I have other (private) disability insurance or other sources of income?

Also, if you increase your LTD coverage during Open Enrollment, you will need to complete an Evidence of Good Health form. Unum, the LTD provider, will mail the form to your home. Your increased LTD coverage will not take effect until you complete and return this form and your new coverage is approved by Unum.