Benefits Plans - Long-Term Disability Plans: Expanded Long-Term Disability
Expanded LTD Improvements Coming in 2014
More faculty and staff will be fully covered in the university’s Expanded Long-Term Disability plan, and employees will see a shorter wait time for automatic enrollment as of Jan. 1, 2014. The changes keep U-M competitive with peer institutions without increasing costs. Reduce rates went into effect on July 1, 2013. Click here to learn more about the plan enhancements for 2014 and the special LTD enrollment opportunity during this year's Open Enrollment.
The Expanded Long-Term Disability Plan is designed to provide you with income and benefit protection should you become totally disabled, as defined in the Definition of Terms.
- Eligibility and Enrollment
- Coverage During Leaves of Absence
- Plan Provisions
- Applying for and Receiving Disability Benefits
- Vocational Rehabilitation and Return to Work
- Provisions for Practicing Physicians
- Plan Limitations and Interpretations
- Definition of Terms
- Frequently Asked Questions
- 2013 Expanded LTD Book (PDF)
- 2014 Expanded LTD book (PDF)
Features - 2013
(Click here to view Expanded LTD changes effective 1/1/14)
|Eligibility||Faculty (except Supplemental Faculty), staff, and members of IUOE, POAM, MNA, Trades, and LEO Lecturers I-IV. See the enrollment criteria directly below for details.|
If you have a 50% appointment or greater lasting eight months or more, you are eligible to enroll immediately. Exception: LEO Lecturer I must have a 50% appointment or greater lasting eight months or more, AND two years of service.
If you have less than a 50% appointment lasting eight months or more, you will be enrolled after five years of continuous service. See Eligibility and Enrollment.
|When University Contributions Begin||
If you have a 50% or greater appointment, University contributions for this benefit will begin after you have four years of continuous service.
If you have less than a 50% appointment, University contributions for this benefit will begin after you have five years of continuous service.
|Salary Replacement||You would receive 65% of your base salary before you were disabled (which is referred to as your "predisability salary"), minus other income from public sources (such as Social Security disability, Workers' Compensation, Veterans Administration benefits, etc.). The Benefits Office determines your predisability salary. The maximum salary replacement benefit you can receivein combination with other sourcesis $23,000 a month.|
|Maximum Covered Salary||$424,615 a year|
|When Benefits Begin||Your benefits will begin after you have exhausted all your sick time pay (including extended sick time benefits), your vacation accrual, and/or PTO accrual. However, if you have less than four years of service, there is a six-month waiting period that begins from the last day of work. "Waiting period" and "Extended sick time" are defined in the Definition of Terms.|
|Effect on Other University Benefits||Typically, any health plan coverage, Dental Plan Option 1, prescription drug, Basic Retirement Plan contributions, and group life insurance benefits are continued at no cost to you. Other benefits may be continued if you pay the premium. See Plan Provisions.|
|Taxability of Disability Benefits||Disability income that is based on university contributions is taxable; disability income based on your own after-tax contributions is tax free. Taxable income will be based on the university contributions made during the three-year period prior to the date disability benefits begin.|
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.