Employer Paid Long Term Disability

Program

An employer paid long term disability (LTD plan designed to guarantee a level of income if an eligible employee is unable to work due to disability which extends beyond 180 days.

Eligibility

Employees who are appointed half-time or more for a duration which exceeds six months in the following classifications:

The Standard Life Insurance Company (The Standard) is the CSU's insurance carrier for employer-paid long-term disability (LTD) insurance. LTD is an income protection program that provides benefits after 180 days of continuous disability. LTD is provided to supplement industrial disability leave, Social Security disability, retirement system payments, or any other group disability plan payments. If disability criteria are met, eligible employees will receive 66 2/3 percent of pay up to a designated maximum amount per month, until age 65. The CSU offers this employer-paid insurance to eligible employees within specified employee categories. The level of coverage varies by employee category. 

In addition, lecturers with a time base of .40 (6 wtu's) or greater who are appointed for an academic year or one semester are eligible.  Please download the Lecturer Benefit Eligibility Criteria

The Standard's LTD plan contains a number of enhanced coverage features including: (1) waiver of premium for disabled employees, (2) survivor benefits, (3) return to work incentives, (4) reasonable accommodation worksite payment, and (5) conversion.

Certificate

Each new participant will be provided with a certificate of insurance detailing the program.  Please refer to the Certificate of Coverage for complete details.

Enrollment

All eligible employees will be automatically enrolled.

Effective Dates

Coverage will be retroactive to the date of appointment unless otherwise stated.  If absent from work due to illness or injury on the date insurance would otherwise become effective , coverage will begin the day after completion of one full day of active work.

Benefits

The LTD benefit is coordinated with all eligible income from other CSU, state and federal sources to provide the stated coverage level.  Examples of the most common deductible income from other sources include disability benefits such as Workers’ Compensation or Social Security and income from work while disabled.

Commencement of Benefits

 Benefits are payable after an initial waiting period of 180 days of continuous disability.  If sick leave has not been exhausted by that time, a minimal benefit of $100 per month will be provided until sick leave is exhausted, at which time eligibility for the benefit will commence.  The first LTD payment is payable one month after the end of the waiting period and monthly checks will be provided while disabled.

Duration of Benefits

While disabled, benefits are paid until age 65.  If disability begins at age 62 or older, benefits may be paid beyond age 65 according to a graded scheduled specified in the insurance certificate.  In the case of disability due to a mental disorder, payment of LTD benefits is limited to 24 months.

Definition of Disability

For the first 24 months, to qualify for LTD benefits the employee must be disabled from performing the material duties of his/her occupation.  After 24 months, benefits are payable if the employee is disabled from performing the material duties of any occupation for which he/she is reasonably fitted by education, training and experience among other factors.  An income protection guarantee is also included which allows payment of benefits for partial disability if an employee is unable to earn more than 80% of predisability income.

Filing a Claim

Obtain a claim statement from Human Resources and submit the completed document, signed by the employee and the treating physician to Standard Insurance Company.  This document must be forwarded to Standard Insurance Company with written authorization to obtain necessary records and related information in order for a determination to be made. 

Standard Insurance has the right to conduct an investigation of the claim and/or to have the employee examined at the insurance company’s expense.  After a claim determination is made, the employee has the right to have any denial of all or part of the claim reviewed by Standard Insurance.

Direct Pay

There is the option to direct pay the premiums for this plan while on an unpaid leave of absence.

Conversion Option

Upon termination of employment, the plan may be converted to an individual plan if application is made within 31 days of separation from employment.

This summary of long term disability benefits is not to be construed as a substitute for the master contract.  Individual insurance certificates are provided to each covered employee.