Benefits Plans - Long-Term Disability Plans: frequently asked questions
What is the difference between Basic Long-Term Disability and Expanded Long-Term Disability?
The Basic LTD plan is now available to AFSCME members only, after four years of service, and provides a different level of salary replacement income than the Expanded LTD plan. Faculty or staff members hired before 9/1/1981, or Trades members hired before 8/1/1986 who did not switch to the Expanded LTD plan are covered under the Basic LTD plan.
How does the LTD Plan define disability?
You must be unable to do any job based on your education, training, or experience. Your disability must also be expected to last at least 12 continuous months from your last day of work. If you are a practicing physician, the Expanded Long-Term Disability Plan, under a special provision, will provide partial disability coverage.
Is LTD the same as the extended sick benefit that the university already provides to faculty and staff members after two years of service?
No, extended sick time pay is a separate plan, and is the university’s equivalent of short-term disability insurance.
When do LTD benefits begin?
Your LTD benefits will begin after you have exhausted all your sick time pay (including extended sick time pay), your vacation accrual, and/or Paid Time Off (PTO) accrual. For faculty and staff enrolled the Expanded Long-Term Disability Plan with less than two years of service, there is a six-month waiting period from your last day of work before LTD benefits begin.
I’m enrolled in a long-term care plan, is that the same as LTD?
No. Long-term care insurance is designed principally to provide a daily cash benefit to cover the costs of health care services provided in a nursing home, your own home, an assisted living facility, or an adult day care facility.
What is "covered salary?"
Covered Salary is the amount of salary that you have insured based on your level of Expanded Long-Term Disability coverage. If you are enrolled in maximum Expanded LTD coverage (listed as “EXPLTD Salary Cov’d up to Max” on Wolverine Access), this amount is equal to your full annual base salary. If you are only enrolled in university-paid, or capped Expanded Long-Term Disability coverage (listed as “EXPLTD Salary Cov’d up to U-Paid” on Wolverine Access), this amount is equal to $59,000 (or your annual base salary if less than $59,000) for 2015.
What is a Statement of Good Health?
A Statement of Good Health is a form or forms specified by the Claims Administrator that you complete and submit to show the state of your health. When you apply to increase your coverage in Expanded Long-Term Disability outside your newly-eligible enrollment period, you must submit a statement of good health and be approved by the Claims Administrator before coverage goes into effect.
What does "base salary" mean?
Base salary is your normal annual earnings, not to exceed 2,080 hours. Base salary includes administrative differential and incentive pay. It excludes summer pay for university-year appointees as well as overtime, shift premium, longevity, and non-university earnings.
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.