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 Plan.
| Type
of Appointment Your appointment must last or be expected to last at least eight or more continuous months. |
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|---|---|---|---|
| When You May Enroll | 50% or Greater Appointment, Less than Four Years of Service | 50% or Greater Appointment, Four or More Years of Service | Less Than 50% Appointment, Five or More Years of Service |
| You may enroll as soon as you meet the eligibility requirements. Enrollment during the first four 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 $30,000 of your base salary. Coverage over $30,000 is optional and at your expense. |
You may enroll as soon as you meet the eligibility requirements. The University pays for the first $30,000 of your base salary. Coverage over $30,000 is optional and at your expense. |
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| 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 form can be obtained from the HR/Payroll Service Center. |
You are automatically enrolled in University-paid coverage. If you did not enroll in optional employee-paid coverage during your first four years of eligible appointment, you may do so under the following conditions: If you were eligible for benefits on or before January 31, 1994, and your salary was less than $30,000 when you were automatically enrolled, you may enroll in optional employee-paid coverage at the time your base salary reaches $30,000 by notifying the Benefits Office within 30 days of the event. If you were eligible for benefits on or after February 1, 1994, you must provide a Statement of Good Health. Your application must be approved before optional employee-paid coverage takes effect. |
You are automatically enrolled in University-paid coverage. You may enroll in optional employee-paid coverage under the following conditions: If you were eligible for benefits on or before January 31, 1994, and your salary was less than $30,000 when you were automatically enrolled, you may enroll in optional employee-paid coverage at the time your base salary reaches $30,000 by notifying the Benefits Office within 30 days of the event. If you were eligible for benefits on or after February 1, 1994, you must provide a Statement of Good Health. Your application must be approved before optional employee-paid coverage takes effect. |
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 the 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. |
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When does coverage begin?
Your coverage takes effect:
- the date your application is received by the Benefits Office if it is received within 30 days of the effective date of an eligible appointment, 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 five 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 five years of service, you will continue to participate in the Expanded Long-Term Disability Plan if your appointment is expect to last eight continuous months or longer.
What is my cost for this coverage?
You and the university share in the cost of Expanded Long-Term Disability coverage according to your salary and your years of service, as described in the Type of Appointment table above.
If there is a cost for the Plan, you pay for your share monthly through after-tax payroll deductions.
Deductions are taken one month in advance. If you are paid bi-weekly, the deduction is taken from your last bi-weekly paycheck of the month. Your deductions begin with your first full month of coverage; there is no deduction for a partial month of coverage.
The amount you pay depends on your salary and the premium rate for coverage. As your salary changes, or as the premium changes, so does your payroll deduction.
For example, if the premium rate is $10 per $1,000 of monthly salary, here is how the cost would be calculated for two different situations:
- Let's say your base salary is under $30,000. For the purpose of this example, we will use a $12,000 annual base salary. During your first four years of service, each month you pay the full cost for Expanded Long-Term Disability coverage ($12,000 x .01 ÷ 12 = $10). After four years of service, the University pays the full cost for your coverage.
- Now let's say you earn an amount over the $30,000 base coverage, such as $48,000. During your first four years of service, you pay the full cost each month ($48,000 x .01 ÷ 12 = $40). After four years of service, the University pays the full cost of your first $30,000 of coverage ($30,000 x .01 ÷ 12 = $25), and you pay the cost of coverage in excess of $30,000 ($18,000 x .01 ÷ 12 = $15).
When does coverage end?
Coverage ends on the date:
- Your appointment or leave status makes you ineligible for this benefit;
- Your employment terminates; or
- Your job/career family is no longer eligible for the coverage.
If coverage ends after the first day of the month, your previous month's deductions will not be refunded.
Next: Coverage During Leaves of Absence
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.