Employee Benefits - Fringe Benefits
CESP 8-12: Long Term Disability Insurance
Date Revised: 11-15-2018
Summary: Establishes policies and procedures for participation in the University of Arkansas Long-Term Disability Plan for Extension employees.
The University of Arkansas Long-Term Disability Insurance (LTD) benefit replaces up to 60% of your salary, less Social Security, Workers’ Compensation or similar disability benefits. Once a claim is approved by The Standard, the carrier, benefits would begin after a 180-day (6 months) elimination period. There are two coverage levels:
Basic Long Term Disability
All eligible employees are automatically enrolled in the University of Arkansas Basic Long Term Disability Plan. CES pays the premium and there is no cost to the employee. This plan covers the first $20,000 of salary. The maximum monthly benefit is $1,000.
Optional Long Term Disability*
If your salary is more than $20,000, you may enroll in additional employee-pay-all Optional Long Term Disability (LTD), which provides 60% of your pre-disability salary, up to $100,000 ($500,000 in 2019). If you enroll after your initial benefits eligibility date, benefits will be subject to a 12-month pre-existing condition waiting period before benefits begin. Your cost is $ 0.00512 per $100 of your monthly salary above $1,666.67. To figure your cost, do the following:
If annual salary is greater than $500,000, use $500,000 as salary to calculate monthly
If annual salary is less than $500,000, use exact salary to calculate monthly benefit.
- Divide your annual salary by 12
- Subtract $ 1,666.67
- Multiply by $ 0.00430
- Divide by 2
- The result is the per pay period cost
* Note: You may enroll in the Optional LTD plan as a newly hired employee, when your salary first reaches $20,000, or during annual enrollment. For those employees that enroll during annual enrollment, a pre-existing provision may apply to the Optional LTD portion for members if they file an LTD claim within 12 months of their coverage becoming effective.