Benefits Plans - Long-Term Disability Plans: Expanded Long-Term Disability -
Definition of Terms

The following terms have special meaning under the Long-Term Disability Plan.

Actively at Work
Actively at work means present in the workplace at your regular appointment effort. You are not considered actively at work if you are absent from the workplace due to a medical leave, child care leave, personal leave, for any other type of unpaid leave without salary, or while using extended sick time pay.

Base Salary
Your normal earnings for the year, not to exceed 2,080 hours. Base salary includes administrative differential and incentive pay. It excludes overtime, shift premium, longevity, and non-university earnings.

Claims Administrator (CA)
The external person(s) or firm that the university selects to administer claims under this plan.

Continuous Years of Service
The period of employment that begins with your benefit eligibility date and ends with your last day of pay with an eligible appointment. Leaves and reductions in force do not cause a break in your service if you return to work within the specified time frame with an eligible appointment.

Coverage in Force
The disability insurance phrase to describe the status of your policy. If your Basic LTD or Expanded LTD coverage is “in force” then you are currently protected.

Covered Salary
The amount of salary that you have insured based on your level of Expanded LTD coverage, maximum or capped.

Covered Lost Earnings
The amount of salary that you have insured based on your level of Expanded LTD coverage, maximum or capped.

Definition of Disability (Partial and Permanent)
The university’s Claims Administrator has determined, at their sole discretion, that you are completely unable, except during periods of rehabilitative employment, by reason of any medically determinable physical or mental impairment, to engage in your own occupation or practice within the terms of your university appointment. The impairment must be expected to result in death or to have lasted, or be expected to last, for a continuous period of not less than twelve (12) months.

Definition of Disability (Total and Permanent)
The university’s Claims Administrator has determined, at their sole discretion, that you are completely unable, except during periods of rehabilitative employment, by reason of any medically determinable physical or mental impairment, to engage in any occupation or employment for wages or profit for which you are reasonable suited by education, training, or experience. The impairment must be expected to result in death or to have lasted, or be expected to last, for a continuous period of not less than twelve (12) months from your last day of work.

Eligible Appointment
For AFSCME staff, an appointment of four (4) continuous years of service at 0 percent effort or greater. For faculty and staff, the combination of your benefits group or job/career family, your appointment percentage, and the duration of your appointment in order to determine your eligibility to participate in benefit plans as an employee of the university.

Evidence of Insurability (Medical Underwriting)
An application process in which you provide information on the condition of your health in order to be considered for enrollment in Expanded LTD coverage. The process requires review and approval by the Claims Administrator before coverage becomes effective.

Extended Sick Time Pay
Under this plan, all present and/or future extended sick time that a faculty or staff member is eligible to receive as defined in the Standard Practice Guide under sections 201.11-0 and 201.11-1, or as defined in the applicable union bargaining agreement.

Faculty or Staff Member
A person who holds a regular, active appointment with the University of Michigan.

Lost Earnings
The difference (reduction) in your base salary before your disability and your base salary after your disability; the reduction must be attributable to the disability for which you are approved for benefits under the Expanded LTD plan.

Medical Leave of Absence
As defined in the Standard Practice Guide under sections 201.11-0 and 201.11-1.

Paid Time Off (PTO)
Under this plan, all present and/or future PTO accrual that a faculty or staff member is eligible to receive.

Plan Administrator
The person(s) authorized by the university to interpret the administration of the Basic LTD plan and the Expanded LTD plan. The Benefits Office is currently the Plan Administrator under the supervision of the university’s vice president and chief financial officer.

Practicing Physician
Under this plan, a person licensed to practice medicine in the State of Michigan who provides patient care services at a university medical facility or affiliated hospital, and does so immediately prior to the disability as part of any job requirement with the university.

Pre-Disability Base Salary
Your base salary, as defined under this plan, before you became totally and permanently disabled (or partially and permanently disabled for practicing physicians).

Regular, Appropriate Care and Treatment
Under this plan, supervised care or treatment by a specialized doctor for the illness or injury causing your disability.

Short-Term Sick Time Pay
Under this plan, all present and/or future sick time that a faculty or staff member is eligible to receive as defined in the Standard Practice Guide under sections 201.11-0 and 201.11-1.

TTY
The telecommunication device for hearing or speech impaired people.

Termination
A faculty or staff member’s separation of service, voluntary or involuntary in nature, from the University of Michigan.

Vacation Accrual
Under this plan, all present and/or future vacation accrual that a faculty or staff member is eligible to receive as defined in the Standard Practice Guide under sections 201.64-0 and 201.64-1.

Waiting Period
The period of consecutive days of disability you must wait before the Expanded LTD plan begins paying benefits. If you have less than two (2) years of service, the Expanded LTD plan will not begin paying benefits until you have been disabled (as defined by this plan) for six months (180 days), or until after you have exhausted all paid time benefits, including but not limited to: short-term sick time pay, extended sick time pay, vacation accrual, and/or PTO accrual, whichever date is later. The waiting period begins with your last day of work.

Workers’ Compensation
The State of Michigan’s Workers’ Compensation Act may provide benefits if you experience a work related illness or injury.

 

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.