For a disability lasting longer than six months, all employees regularly scheduled to work at least 20 hours per week are covered under the Basic Long-Term Disability (LTD) program, which provides for income replacement of 60% of pay. The cost of this Basic LTD plan is shared by you and OneBeacon®. You also have the opportunity to elect Supplemental LTD coverage, which increases your income replacement to 70%. You bear the full cost of this additional benefit.
You may elect coverage within 30 days of your date of hire or at open enrollment if you are not currently enrolled in Supplemental LTD. Evidence of insurability (EOI) is not required to purchase supplemental LTD coverage. When calculating disability benefits for employees who participate in the Management Incentive Program (MIP), their target MIP will be included in the definition of disability pay (in addition to base salary).
Overview of Benefits
Long Term Disability benefits begin at the end of the covered employee's Short Term Disability (STD), or, the 180th day. Depending on when the disability begins, benefits may last as long as you are considered total disabled or until you reach age 65.
Please note: Part-time employees regularly scheduled to work less than 20 hours per week, leased employees, and individuals classified by the Company as temporary or independent contractors are not eligible to participate in the Long Term Disability Benefits.
Basic LTD: the Basic LTD Plan will pay a monthly benefit equal to 60% of pay.
Supplemental LTD: the Supplemental LTD Plan, if elected, will pay a monthly benefit equal to 10% of pay, which when combined with Basic LTD, creates a 70% LTD benefit. The employee pays the full cost of Supplemental LTD.
Contributions for Disability: All paycheck contributions for disability coverage (both Basic and Supplemental LTD) are made on an after tax basis. Therefore, if you become disabled, the portion of your disability benefit that was paid by you with after-tax dollars, is not taxable to you when paid.
If the employee receives income replacement payments from other sources, their LTD Plan benefit will be reduced by the amount of these benefit payments.
After 180 days on disability, medical and dental coverage will be continued under the Consolidated Omnibus Reconciliation Act (COBRA) for up to 18 months, or 29 months if disabled as defined by Social Security. During the COBRA continuation period coverage is available by paying the active employee premium rate (subject to change). You will be billed directly to pay for those premiums.
If you become totally disabled prior to age 60, your Supplemental Life Insurance may be able to be continued under the Premium Waiver provision. Please note that you need to complete an application in order to be considered for the waiver of premium.
If you'd like more information regarding the Liberty Mutual long-term disability program click here to review the Certificate of Coverage.