Benefits Plans - Long-Term Disability Plans: Expanded Long-Term Disability
The Expanded Long-Term Disability Plan is designed to provide eligible faculty and staff with income and benefit protection should you become totally disabled and unable to work. Disability under the plan is defined as a time when you are totally disabled, no longer able to engage in any occupation or employment for which you are reasonably suited by education, training, or experience, and the disability is expected to last at least 12 months.
In this one-minute video, an LTD participant explains the value of the Expanded Long-Term Disability benefits and the positive impact it has on her life since she became unable to work.
Eligibility for Plan Benefits
You must be unable to do your job or any other job for which you are reasonably suited by education, training, or experience. Your disability or impairment must be expected to last for a continuous period of at least 12 months from your last day of work. There is a special provision for practicing provisions for partial disability benefits.
When Expanded Long-Term Disability Benefits Begin
Your Expanded LTD benefits will begin after you have exhausted all your sick time pay, including but not limited to short-term sick time pay, extended sick time pay, vacation accrual, and/or Paid Time Off (PTO) accrual. However, if you have less than two years of service, there is a six-month waiting period from your last day of work before LTD benefits begin.
Income Replacement Benefits and Taxes
You will receive up to 65 percent of your covered, pre-disability salary. The university will coordinate your benefits with other disability income, such as Social Security.
The university will continue to send you a W-2 each year. LTD income replacement benefits may be all taxable, all non-taxable, or a combination of both. Taxable income is based on the university and employee contributions paid during the three-year period immediately preceding your LTD begin date.
Effect on Other U-M Benefits
The U-M benefit plans in which you are participating on your last day of pay will be continued, including coverage for your eligible dependents enrolled on your benefits as of your last day of pay.
The following benefits will be continued at no cost to you:
- U-M health plan with prescription drug coverage
- Dental Plan Option 1
- Employee Life Insurance
- Basic Retirement Savings Plan university contributions
You can continue the following plans by paying the monthly premiums or contributions:
- Dental Plan Option 2 or Option 3
- Vision Plan
- Legal Services Plan
- Dependent Life Insurance
- Flexible Spending Accounts
- Expanded Long-Term Disability Eligibility, Enrollment, and Coverage
- Paying for Expanded Long-Term Disability Coverage
- Partial Disability Coverage for Practicing Physicians
- How to File a Claim for Long-Term Disability Benefits
- Download the Expanded Long-Term Disability Plan book
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.