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Long-Term Disability Insurance

Overview

Central College provides long-term disability (LTD) for employees to provide coverage in the event a personal medical condition inhibits their ability to work longer than 90 days.

Definitions

Long-term disability (LTD): benefit offered that provides compensation for employees who are not able to return to work due to a personal medical condition after short-term disability benefits have been exhausted.

Responsibilities

Employee: responsible for completing the application form and providing medical documentation as needed to complete the application process for LTD pending eligibility.

Talent, Equity and Engagement Office: support the employee through the application process and communicate changes as needed depending on the qualification and time frames of each employee’s situation.

Policy Details

The college pays for LTD coverage for employees which is a tax-free benefit and is considered part of the overall compensation package offered.

  1. Eligibility
      1. Employees with a current status of .50 FTE or more
      2. After satisfying a waiting period of 90 calendar days of total, partial, or intermittent disability based on a personal medical condition that prevents them from returning to work.
      3. Medical certification by a treating physician is required to document the employee is unable to perform the requirements of their position.
  2. The LTD benefit is 60% of the monthly regular compensation of the employee up to $10,000.
  3. During the initial three (3) month period of LTD, employees retain their employment status and will maintain existing benefits.
  4. LTD payments are made to the employee via the LTD carrier, so the employee will be responsible for reimbursing the college for the employee premiums as appropriate for the continuation of their benefits.
  5. If the employee is released to return to work after having qualified for LTD and after having exhausted all FMLA entitlement, they will need to apply for an open position for which they are qualified. Since their former position will no longer be protected and will likely be filled, they are eligible to apply upon their release to return to work.
  6. The returning employee will have 30 days to secure a position through the typical application and hiring process.
  7. If, after 30 days, the employee has not secured a new position, their employment will end. However, they will remain eligible for rehire if they choose to apply in the future as an external candidate.
  8. If the employee remains off work and qualified for LTD for three months and imminent return to work is not expected, employment with Central College will end.
      1. The employee will be offered healthcare continuation coverage (COBRA) and other conversion rights.
      2. The Talent, Equity and Engagement Office will provide the necessary details and documentation for the employee regarding the end of employment and benefit options available at that time.
      3. If the employee continues to qualify for LTD benefits, the separation of employment will not impact those benefits.

 

Last Revision Date: 4/12/2024

Policy Owner: Talent, Equity and Engagement Office