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

Who is eligible to enroll in this Plan?

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

  • a faculty member (except Supplemental)
  • a staff member
  • a member of: IUOE, MAP, MNA, Trades, LEO members including Lecturer I with 2 years of service; and
  • eligible to enroll in the university's Basic Retirement Savings Plan.

Type of Appointment

Your appointment must last—or be expected to last—at least
eight or more continuous months.

When You May Enroll 50% or Greater Appointment, Less than Two Years of Service 50% or Greater Appointment, Two or More Years of Service Less Than 50% Appointment, Three or More Years of Service
You may enroll as soon as you meet the eligibility requirements. Enrollment during the first two years is optional, at your expense, and based on your entire salary.

You may enroll as soon as you meet the eligibility requirements.

The university pays for the first $57,500* of your base salary.

Coverage over $57,500* is optional and at your expense.

You may enroll as soon as you meet the eligibility requirements.

The university pays for the first $57,500* of your base salary.

 

*The university-paid coverage for 2015 will increase from $57,500 to $59,000.
How You Enroll 

You must submit a completed application form to the Benefits Office within 30 days of becoming eligible, or as specified by your bargaining agreement. If you wait past 30 days, you must also submit a completed Statement of Good Health. Your application and Statement of Good Health must be approved before coverage takes effect.

The forms are available from the Benefits Office website.

You are automatically enrolled in university-paid coverage, provided you are actively at work.

If you did not enroll in optional employee-paid coverage during the first two years of your eligible appointment and you
are actively at work on your two-year service anniversary, you may submit a completed application form to the
Benefits Office within 30 days of your two-year service anniversary.

If you wait past 30 days, you must also submit a completed Statement of
Good Health. Your plication and Statement of Good Health must be approved before coverage takes effect.

The forms are available from the
Benefits Office website.

You are automatically enrolled in university-paid coverage, provided you are actively at work. You
may enroll in optional employee- paid coverage by submitting a completed application form to the Benefits Office within 30 days of becoming eligible or as specified by your bargaining agreement.

If you wait past 30 days, you must also submit a completed Statement of Good Health. Your application and Statement of Good Health must be approved before coverage takes effect.

The forms are available from the
Benefits Office website.

If you were hired before September 1, 1981, and did not enroll in the Expanded Long-Term Disability Plan, you are covered under the provisions of the Basic Disability Plan that was in effect at that time. You will remain in the Basic Disability Plan unless you apply for the Expanded Long-Term Disability Plan, provide a Statement of Good Health, and your application is accepted.

When does coverage begin?

Your coverage 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 above, you must be actively at work before coverage can take effect.

What if I have a split appointment?

If you have more than one appointment, you may enroll in this Plan if one of the appointments is in an eligible job/career family and if that appointment meets the eligibility requirements.

What happens if my appointment drops below 50%?

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

If your appointment drops below 50% 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.

What is my cost for this coverage?

The amount you pay depends on your salary, your years of service, and the premium rate for coverage. As your salary changes, or as the premium rate changes, so does your payroll deduction.
Faculty and staff members pay for coverage on the entire salary for the first two years of employment at the university. The cost is $5.95 per month for each $1,000 of monthly base salary. Rates may change annually. Refer to the charts below for information on the cost of your coverage.

Faculty or Staff Member with Less than 2 Years of Service

Your monthly cost = annual salary ÷ 12 x .00595

For example, if your salary is:
$  30,000 ÷ 12 x .00595 = $14.88 / month
$  57,500 ÷ 12 x .00595 = $28.51 / month
$  75,000 ÷ 12 x .00595 = $37.19 / month
$100,000 ÷ 12 x .00595 = $49.58 / month

Faculty or Staff Members with 2 or More Years of Service

Your 2014 monthly cost = (annual salary - $57,500) ÷ 12 x .00595

2014 Examples
For example, if your salary is:
$  57,500 (or less) = No monthly cost
$  75,000 - $57,500 ÷ 12 x .00595 =   $8.68 / month
$100,000 - $57,500 ÷ 12 x .00595 = $21.07 / month

The university-paid coverage for 2015 will increase from $57,500 to $59,000.
Your 2015 monthly cost = (annual salary - $59,000) ÷ 12 x .00595

2015 Examples
For example, if your salary is:
$  59,000 (or less) = No monthly cost
$  75,000 - $59,000 ÷ 12 x .00595 =   $7.93 / month
$100,000 - $59,000 ÷ 12 x .00595 = $20.33 / month

If there is a cost for the plan, you pay for your share monthly through aftertax payroll deductions. If you are paid biweekly, the deduction is taken from each biweekly paycheck unless there are three biweekly paychecks in a month. In this case, deductions will not be taken from the third paycheck. Your deductions begin with your first full month of coverage; there is no deduction for a partial month of coverage.

Click here to calculate your monthly Expanded LTD cost.

When does coverage end?

Coverage 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 the coverage.

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

 

Next: Coverage During Leaves of Absence

 

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.