Long Term 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.
*Effective July 1, 2024, Unum will become the vendor for CMU’s disability insurance plans (replacing The Hartford).
| 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 24 months of the date your coverage ended; then coverage may be reinstated, provided that you request such reinstatement within 31 days of the date you return to work or to an eligible class. 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. |
| Health Champion | Get the support you need to help make smarter health care decisions. Health Champion health care support services can guide you through health care options, connect you with the right resources, and advocate for timely and fair resolution of issues. Guidance Consultants can be accessed 24 hours a day via toll free telephone line: 1-800-96-HELPS (1-800-964-3577) |
| Ability Assist | Long term disability claimants may need help with work/life issues during or after a disability. Ability assist counseling services can help by offering counseling sessions, connecting you with racecourses, and more. For access to the extras that support and assist, call toll free: 1-800-96-HELPS (1-800-964-3577) |
| Travel and ID theft assistance | Provides emergency assistance through International Medical Group (IMG) to employee and family while traveling when the unexpected happens, as well as provides support services for identity theft. Contact IMG toll free at 800-243-6108 or assist@imglobal.com |
Long term disability FAQs
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 if covered by The Hartford disability contract. 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.