Benefits Plans - Long-Term Disability Plans: Expanded Long-Term Disability -
Eligibility, Enrollment, and coverage


Eligibility

You are eligible to enroll in the Expanded Long-Term Disability Plan if you are a:

  • Faculty member (except Supplemental)
  • Staff member
  • Member of IUOE, LEO Lecturer II-IV, MNA, POAM, and Trades
  • LEO Lecturer I with at least a 50 percent appointment and two years of service

When You May Enroll

You are eligible to enroll in Expanded Long-Term Disability coverage immediately upon your date of hire without having to submit a Statement of Good Health for evidence of insurability by the Claims Administrator if:

  • You hold at least a 50 percent appointment (20 hours per week or more),
  • Your appointment is expected to last eight months or more, and
  • You enroll in coverage within 30 days of your newly eligible appointment

If you wait to enroll in coverage, you will be required to submit an Expanded Long-Term Disability Application with Health Statement. Your Statement of Good Health must then be reviewed and approved for evidence of insurability by the Claims Administrator before coverage takes effect. To apply for coverage under the Expanded Long-Term Disability Plan, complete and submit the Expanded Long-Term Disability Application with Health Statement.

If you have less than a 50 percent appointment (19 hours per week or less), you are eligible to enroll after three years of service.

Two Levels of Expanded Long-Term Disability Coverage

There are two levels of Expanded LTD coverage, maximum Long-Term Disability and capped Long-Term Disability. They each provide different LTD income benefit amounts and different retirement savings plan contribution amounts.

Maximum Expanded Long-Term Disability Coverage

Maximum Expanded Long-Term Disability protects your full pre-disability base salary. You may enroll in the maximum Expanded LTD plan as soon as you are eligible. When you have maximum Expanded LTD coverage, if you become totally disabled and the Claims Administrator approves your claim for LTD benefits, you may receive an income replacement benefit of up to 65 percent of your full pre-disability base salary. If you are enrolled in the Basic Retirement Savings Plan, you may also receive a retirement savings contribution of up to 15 percent of your full pre-disability salary.

Capped Expanded Long-Term Disability Coverage

The capped level of Expanded Long-Term Disability coverage protects annual salary up to a limited amount as determined by the university each year. For 2015, the salary limit is $59,000. You may enroll in capped Expanded Long-Term Disability after two years of service. Under the capped Expanded Long-Term Disability plan, if you become totally disabled and the Claims Administrator approves your claim for LTD benefits, you may receive the following:

  • An income replacement benefit of up to 65 percent of the limited annual salary amount as determined by the university (for 2015, that is 65 percent of $59,000, for an annual income replacement benefit of $38,350), and
  • A U-M retirement savings plan contribution of up to 15 percent of the limited annual salary amount as determined by the university. For 2015, that is up to 15 percent of $59,000 for an annual retirement savings plan contribution of up to $8,850.

50 Percent or Greater Appointment

Less than Two Years of Service

Maximum Coverage
If you have a 50 percent or greater appointment (20 hours per week or more), enrollment in maximum Expanded Long-Term Disability coverage during the first two years is optional, at your expense, and based on your entire salary.

If you do not enroll in maximum coverage, you will not have any disability insurance protection until your two-year service anniversary, or longer if you are on medical leave, child care leave, personal leave, other unpaid leave, or if you are using extended sick time pay on your two-year anniversary.

Enroll on Wolverine Access within 30 days of becoming eligible, or as specified by your bargaining agreement. If you wait past 30 days to enroll, you must complete and submit the Expanded Long-Term Disability Application with Health Statement to apply for enrollment in the plan. Your application and Statement of Good Health must be approved by the Claims Administrator before coverage takes effect.

If your appointment drops below 50 percent during your first three years of service, you will be ineligible. You will become eligible again when your appointment reaches 50 percent and is expected to last eight continuous months or longer.

Capped Coverage
Capped Expanded Long-Term Disability coverage is not available before two years of service.

Two or More Years of Service

Maximum Coverage
If you are actively at work and did not enroll in maximum Expanded Long-Term Disability coverage during the first two years of your eligible appointment, and you are actively at work on your two-year service anniversary, complete and submit the Expanded Long-Term Disability application within 30 days of your two-year service anniversary to enroll.

If you wait past 30 days to enroll, you must complete and submit the Expanded Long-Term Disability Application with Health Statement to apply for enrollment in the plan. Your application and Statement of Good Health must be approved by the Claims Administrator before coverage takes effect.

Capped Coverage
If you are not already enrolled in maximum Expanded Long-Term Disability coverage, you will be automatically enrolled in capped Expanded Long-Term Disability coverage effective on the date of your two-year service anniversary in a benefit-eligible position as long as you are actively at work.

Change in Appointment

If your appointment drops below 50 percent after you have completed three years of service, you will continue to participate in the Expanded Long-Term Disability Plan if your appointment is expected to last eight continuous months or longer.

Less Than 50 percent Appointment

Less Than Three Years of Service

If your appointment is less than 50 percent (19 hours per week or less), you are not eligible to enroll in maximum or capped Expanded Long-Term Disability coverage until three years of service.

Three or More Years of Service

Maximum Coverage
If you are actively at work, complete and submit the Expanded Long-Term Disability application within 30 days of your three-year service anniversary to enroll in maximum Expanded Long-Term Disability coverage.

If you wait past 30 days to enroll, you must complete and submit the Expanded Long-Term Disability Application with Health Statement to apply for enrollment in the plan. Your application and Statement of Good Health must be approved by the Claims Administrator before coverage takes effect.

Capped Coverage
If you do not enroll in maximum Expanded Long-Term Disability coverage, you will be automatically enrolled in capped Expanded Long-Term Disability coverage effective on the date of your three-year service anniversary in a benefit-eligible position as long as you are actively at work.

When Expanded Long-Term Disability Coverage Begins

Your coverage under the Expanded LTD plan takes effect:

  • the effective date of an eligible appointment if your application is received by the Benefits Office within 30 days of the effective date, or
  • the date you are automatically enrolled, or
  • the date your Statement of Good Health is approved.

In all cases, you must be actively at work before Long-Term Disability coverage can take effect.

When Expanded Long-Term Disability Coverage Ends

Your coverage under the Expanded Long-Term Disability plan ends on the date:

  • Your appointment or leave status makes you ineligible for enrollment in this benefit coverage;
  • Your employment terminates; or
  • Your job family is no longer eligible for enrollment in Expanded Long-Term Disability coverage

If coverage ends after the first day of the month, your deductions will not be refunded for that month.

Withdrawing from Expanded Long-Term Disability Coverage

You may withdraw from maximum Expanded Long-Term Disability coverage at any time by completing and submitting a Notice of Withdrawal form.

Before Two Years of Service
If you withdraw from Expanded Long-Term Disability coverage and have less than two years of service, you will no longer have LTD insurance protection for income replacement and benefits continuation, which includes medical plan and prescription drug coverage and contributions to the Basic Retirement Savings Plan.

With two or more years of service
If you withdraw from maximum Expanded Long-Term Disability coverage and have at least two years of service, you will remain enrolled in capped Expanded Long-Term Disability coverage. However, your LTD insurance protection will be reduced for both income replacement and Basic Retirement Savings Plan contributions.

After Age 62
You may wish to evaluate your continued enrollment in maximum Expanded Long-Term Disability coverage after you reach age 62 because of the limited benefit duration period that begins at age 62. Some factors to consider include how long you plan to continue working and/or the balance available in your extended sick time pay. View the Expanded Long-Term Disability Plan book for details on withdrawing from coverage and the duration period for LTD benefits after age 62.

Expanded Long-Term Disability Forms and Documents

Download the Expanded Long-Term Disability Plan book for complete details.

To enroll in the Expanded Long-Term Disability Plan within 30 days of eligibility, download and complete the Expanded Long-Term Disability Application

To apply for enrollment in the Expanded Long-Term Disability Plan after your 30-day deadline, download and complete the Expanded Long-Term Disability Application with Health Statement

Download and complete the Expanded Long-Term Disability Plan Notice of Withdrawal to cancel your enrollment in the plan.

 


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.