Long-term Disability
Long-term disability provides financial protection for you by paying a portion of your income while you are disabled (more than 6 months). Upon approval from CMU's Disability Carrier, you will receive a monthly disability benefit check based on 67% of base salary at the time of your disability.
Below is a summary of Central Michigan University's long term disability (LTD) plan. For full details, please reference the long term disability plan booklet.
| Title | Description |
|---|---|
| Benefits begin | 180 days; benefits begin the day after the elimination period is completed. |
| Definition of disability | You are prevented from performing one or more of the essential duties of: 1) your occupation during the elimination period; 2) your occupation, for the 24 months following the elimination period, and as a result your current monthly earnings are less than 80% of your indexed pre-disability earnings; and 3) after that, any occupation. |
| Partial disability benefits | Are available which help disabled employees who are able to return to work on a limited basis. If you have been disabled for more than six months but are unable to earn more than 80% of your pre-disability earnings, this allows you to receive a benefit while you are working. There is a work incentive benefit during the first 12 months of payments, while working; your monthly payment will not be reduced as long as disability earnings plus the gross disability payment does not exceed 100% of indexed monthly earnings. If, after 12 months you are still partially disabled and working part-time, you will begin to receive the partial disability benefit that would include your partial earnings in the calculation. |
| Monthly benefits | A monthly income benefit, equal to 67% of your monthly base wage, to a maximum monthly benefit of $10,000 per month less other benefits offsets. The minimum monthly benefit is $100, or if greater, 10% of the monthly income benefits before offsets. Offsets include but are not limited to: social security disability, worker's compensation and Michigan Public Schools Employee Retirement System (MPSERS) pension. |
| Retirement income protection benefit | Makes contributions to a retirement annuity on your behalf, which protects your retirement income. |
| Cost of living increase | To equal 3% annually, beginning 12 months after your long term disability benefits begin. |
| Survivor income benefit | Pays your eligible survivor a lump sum benefit equal to three months of your gross disability payment if, on the date of your death your disability had continued for 180 or more consecutive days; and you were receiving or were entitled to receive payments under the plan. |
| Conversion benefit | Provides that you can convert the disability coverage to an individual policy, without submitting proof of good health, in the event that you terminate employment with the University. A terminating employee who wants to convert must have been covered for at least 12 months prior to the request for conversion. Conversion form must be filed and received by the company within 31 days of termination date. You cannot convert your long term disability plan if you are retiring. |
| Duration of benefit | Depends on when you become disabled. Prior to age 60, benefits continue to normal retirement age (65). Age 60-64 benefits continue for 60 months. Age 65-67 benefits continue to age 70. Age 68 and over benefits continue for 24 months. There is also a two-year nervous/mental clause. |
| Exclusions | The plan does not cover, and no benefit shall be paid, for any disability:
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| Waiting period for pre-existing condition | Your plan limits the benefits you can receive for pre-existing conditions. In general, if you were diagnosed or received care for a condition before the effective date of your plan, you will be covered for a disability due to that condition only if:
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| Reinstatement | If your coverage ends because you are no longer employed by CMU or no longer in an eligible class; and you are rehired or return to an eligible class within the same plan year, your coverage will automatically be reinstated. You will not be subject to any eligibility waiting period or evidence of insurability (EOI). You cannot reinstate any amount of coverage which you continued under a conversion right; unless you cancel such coverage. |
| Worldwide Emergency Travel Assistance | Provides worldwide emergency travel assistance through Assist America to employees and their families when traveling 100 miles or more from home. Connect to medical and other important services 24 hours a day by calling 1-800-872-1414 in the U.S., 1-609-986-1234 outside of the U.S., or by downloading the mobile app. |
Long term disability FAQs
How do I make a claim for long-term disability?
- Please contact the Benefits & Wellness Office at Rowe 108 or call 989-774-3661 after 3-4 months on leave of absence.
- Complete the Employee section of long-term disability claim form – you may fax or mail it directly to the disability carrier.
- Forward the Physician section of long-term disability claim form to your physician for completion – your physician can fax or mail the completed form directly to the disability carrier.
- If you are a MPSERS participant (retirement plan), you should contact the MPSERS/ORS office at 800-381-5111 and request a disability retirement packet .
- If applicable, complete the MPSERS disability retirement paperwork.
- Once approved for long term disability, you must contact the Social Security Office to apply for social security disability benefits.
- If or when you have been approved for MPSERS disability retirement and/or social security disability benefits, you must contact the Benefits & Wellness Office and forward copies of the award/approval letters. MPSERS disability retirement payments and social security disability payments are considered deductible sources of income and will be deducted from your monthly long-term disability benefit check.
Are these disability benefits taxable?
Yes. Since long term disability (LTD) premiums are paid on a pre-tax basis, any benefit paid out in the event of disability would be taxable.
Are there any pre-existing condition clauses?
Yes. Please reference the long term disability (LTD) plan booklet for more details on pre-existing condition definition and imitation.
If I am on paid sick leave and have a salary increase, are my long term disability benefit payments based on the new salary increase?
No, they are calculated on the salary you were earning at time of disability.
If my salary changes during the course of the year, are my benefit levels and costs of the coverage affected?
Yes. The cost, the University contribution, and the actual benefit payable under the plan would be adjusted accordingly. Your paycheck would reflect the change.
Is there an offset to my long term disability if I am eligible to receive sick leave or vacation pay?
If you are receiving any type of paid time off income, disability payments will be offset by the income received from the other paid time sources.
If a person is disabled collecting long term disability until age 60, and then takes a disability retirement, what happens?
A person collecting disability will have their disability income offset by any other income benefit(s) they receive. Both CMU disability programs provide a minimum income benefit if the monthly income amount is completely offset by income from other sources. The minimum benefit will continue until age 65, if disability income began before age 60.
Upon application for disability you are required to apply for Social Security disability benefits as well as any disability retirement benefits that may be available. CMU MPSERS participants are required to apply for disability retirement. Until a written decision is received from Social Security or the applicable retirement system, disability programs will estimate what the income will be from other sources and offset the disability income.