Benefits Plans - Long-Term Disability Plans: Basic Long-Term Disability


The Basic Long-Term Disability (LTD) Plan is now available to AFSCME members only, after four years of continuous service. At four years of service, AFSCME members are automatically enrolled provided you are actively at work.  If you are a regular faculty or staff member hired before September 1, 1981, or a Trades member hired before 8/1/1986, and you did not switch to the Expanded LTD Plan, you are covered under the provisions of the Basic LTD Plan. 

The Basic LTD Plan is designed to provide you with income and benefit protection should you become totally disabled, as defined in the Definition of Terms.

Plan Features

 

Eligibility

• AFSCME members
• Faculty (except Supplemental faculty) and staff hired prior to
September  1, 1981, who are currently enrolled in the plan
• Trades members hired prior to August 1, 1986, who are currently enrolled in the Plan


Enrollment

AFSCME members are enrolled automatically after four years of continuous service with any percent appointment greater than 0%. You must be "actively at work" to be automatically enrolled in coverage. See Definition of Terms.

When University
Contributions Begin

University contributions begin at the time you are automatically enrolled.

 

Salary Replacement

The Basic LTD Plan will pay you 50% of your predisability salary-  up
to $1,200 a month. The university will coordinate its benefits with those you receive from a public source (such as Social Security retirement  and disability, Workers' Compensation, Veterans Administration benefits, etc.) so that your benefits will not exceed 75% of your "predisability salary" (your base salary before you were disabled)- or (for AFSCME staff only) your predisability net salary-whichever is more.

Maximum Covered Salary

$28,800 a year

When Benefits Begin

Your benefits will begin after you have exhausted  all your sick time pay (including extended sick time benefits) and your vacation accrual and/or PTO accrual.

Effect on Other University
Benefits

Typically, any health insurance, 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 Other Benefits.

Taxability of Disability Benefits

Disability income is taxable.

 

Next: Eligibility and Enrollment

 

 

Limitations
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.