Benefits Plans - Long-Term Disability Plans: Long-Term Disability changes
July 2013 Changes
The July 2013 LTD premium rate changes are detailed below:
- Expanded LTD Plan for regular faculty and staff, plus members of Trades, POAM, IUOE, MNA, and LEO:
- University contribution rate decrease from $9.48 to $5.44 per $1,000 of monthly covered salary.
- The maximum Expanded LTD fringe benefit charge per employee will decrease from $23.70 to $13.60 per month for employees earning at least $30,000 annually. [($5.44 x 30)/12]
- Employee contribution rate will decrease from $9.48 to $5.95 per $1,000 of monthly salary. Faculty and staff enrolled in the Expanded LTD plan who are currently purchasing LTD coverage on their full salary will see a 37% reduction in their LTD deductions beginning in July 2013.
- Basic LTD Plan for AFSCME members: Rate decrease from $21.87 to $13.55 per $1,000 of monthly covered salary. This plan is all university-paid, therefore employee paychecks will not be impacted by this premium rate change.
- The maximum Basic LTD fringe benefit charge per employee will decrease from $54.49 to $32.52 per month for employees earning at least $28,800 annually. [($13.55 x 28.8)/12]
January 2014 Changes to Expanded LTD Plan
As part of the improvements to the Expanded LTD plan which take effect in January 2014, Expanded LTD university contribution amounts will increase at that time when two key plan changes take effect: more salary replacement coverage from the university, and a shorter waiting period before employees begin receiving university contributions toward Expanded LTD. The maximum Expanded LTD benefit charge per employee will increase from $13.60 to $26.00 per month for covered employees earning at least $57,500 annually beginning Jan. 1, 2014.
[($5.44 x 57.5)/12]
For more information, please visit Expanded Long-term Disability Improvements.
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.