Disability Insurance
Long-Term Disability
The following offers a general description of the University's Long Term Disability coverage. This general description does not replace the contract. Individual situations can and will vary greatly with LTD. Participants who have questions concerning their LTD coverage should refer directly to the certificate of coverage or contact Human Resource Services (HRS). Upon filing a claim, participants may contact CIGNA directly (800-36-CIGNA to file, and 800-238-2125 for service) to verify the specific terms and duration of any LTD coverage applicable to them. Click here to view the complete LTD Employee Certificate.
1. General Policy Overview
The University of Richmond provides Long Term Disability insurance to all full time University employees. After meeting a 6-month elimination period while disabled, a covered employee may be eligible to receive disability payments that can be as much as 66 2/3 % of his/her pre-disability monthly salary up to a $10,000 monthly income benefit maximum. Monthly disability payments will be reduced by disability benefits received from Social Security, Worker's Compensation, working income, and other sources (as determined by the LTD plan). The minimum monthly income benefit is $100. In certain cases disability coverage may also provide return to work incentives that can alter monthly benefits for a limited period of time.
The LTD plan also provides an Annual Benefit Increase provision. With this provision, benefits paid by the LTD plan to a qualified disabled participant may be automatically increased by the lesser of the percentage change in the Consumer Price Index (CPI) or 3% annually beginning with the third anniversary of benefit payments and continuing for as long as the individual continues to be determined to be disabled under the terms of the plan or until benefit payments cease. In certain situations if an insured disabled participant who has been receiving continuous disability benefits dies, three (3) months worth of the monthly income benefit may be available for a qualified individual or the participant's estate.
Exception: An active Employee who is determined to be totally disabled after reaching the age of 68 1/2 is eligible for disability benefits only up to a maximum benefit period of one (1) year.
Note: There are numerous provisions and limitations that are not mentioned in this summary so please refer to the LTD summary plan description or contact HRS to verify the terms of your coverage.
2. Cost
Premiums paid entirely by the University.
3. Enrollment
Full-time employees are eligible for this benefit immediately. Employees must be scheduled and present at work in order to be enrolled in the LTD plan. If they are not scheduled and present at work on the eligibility date, then enrollment will occur on the 1st day the Employee returns to active duty.
4. Procedures for Applying for Long-Term Disability
If an employee has a serious health condition, which makes him/her unable to perform their job, he/she should contact Human Resource Services (HRS) to request Family and Medical Leave Act (FMLA) paperwork to determine eligibility and begin the process for filing for Long-Term Disability with CIGNA. Disability may also entitle you to Social Security disability benefits. To apply for Social Security the employee must go to the Social Security office. CIGNA will assist the employee in the Social Security filing process.
While pending disability, the employee may continue receiving University benefits as if he/she were working. Once the employee's sick and/or vacation leave is depleted, the employee is billed for the employee portion of any benefit premiums they may owe. The University continues to pay their portion while pending disability. If an employee is not actively at work after a period of 6 months due to illness or injury, that employee will be terminated. If the employee is covered by a University health insurance and/or dental plan the employee and/or any eligible dependents will be offered continuous coverage under COBRA at the employee's expense. The Federal Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) provides employees and their qualified dependents the opportunity to continue coverage under the University's health and dental insurance plan when a "qualifying event" would normally result in loss of benefits.
All optional benefits the employee may have are terminated at this point. Some optional benefits may be continued directly through the vendor.
If the employee is eligible for Social Security disability and Medicare, the University will offer the employee a Medicare supplement plan, which is currently paid for by the University. This plan does not cover prescription drugs.
If the disabled employee would prefer, they may continue COBRA coverage until it expires and then go on the University provided Medicare Supplement plan. If the employee chooses not go on the University provided Medicare Supplement plan when the COBRA benefit expires, they will not be able to enroll at a later time.
When the disabled employee turns 65:
Staff hired on or prior to July 1, 1992 and faculty hired prior to September 1, 2003: When a disabled staff member hired on or prior to July 1, 1992 or a disabled faculty member hired prior to September 1, 2003 turns 65 they will be placed on the Medicare supplement plan offered to retirees. The University will pay up to $200 per month for this plan.
Staff hired after July 1, 1992 and faculty hired on or after September 1, 2003: Medicare coverage for disabled staff hired after July 1, 1992 and disabled faculty hired on or after September 1, 2003 will end when the employee turns 65.
Note - Certain references have been made concerning other contracts and benefits such as life insurance, long term disability insurance, short term disability insurance, medical insurance, etc. These references are provided as general guidance and are not a replacement or supplement to the terms and provisions of the actual contracts or benefit referenced. For specific information concerning these policies please contact Human Resource Services for details.
5/19/08
5. Life Insurance
Life Insurance may continue under certain circumstances when an employee has been classified by the LTD carrier as disabled.
6. Tuition Remission
Full-time Employees who are approved for LTD May be eligible for the tuition remission benefits which would have been theirs had they not become disabled (see Tuition Remission). The words "tuition remission benefits which would have been theirs" means the tuition benefits available at the time application for such benefits is made, not the tuition benefits in affect at the time the condition causing the disability occurred.
7. Retirement
If an Employee is approved for LTD by the LTD carrier and is receiving disability payments they should contact the LTD carrier to determine if they are eligible to receive retirement plan contributions. Monthly payments to the Employee's University-sponsored retirement plan may be continued for those Employees who were enrolled in a retirement plan when the condition causing the disability occurred. The disability plan may continue to contribute to the Employee's retirement account until LTD benefits cease or until the Employee closes his/her retirement account, whichever occurs first.
Short-Term Disability (Optional)
1. Coverage
This optional benefit provides income protection while the Employee is under a doctor's care and unable to work due to a covered accident or illness. NOTE: Approval for this optional benefit does require medical underwriting and is not guaranteed issue.
2. Cost
Paid entirely by the Employee. This benefit is provided as part of the University's Section 125 Flexible Benefits program. Premiums must be paid through pre-tax payroll deductions.
3. Enrollment
A full-time Employee is eligible to enroll on the 1st day of the month following his/her employment date. However, coverage does not begin until the 1st of the month following receipt of the application for enrollment if you are approved for coverage. A part-time Employee who becomes full-time is eligible on the 1st day of the month following the status change.
In order to enroll in this plan, the Employee must meet with the short term insurance representative (who is on campus each month) and must complete an application no later than thirty-one (31) days after his/her eligibility occurs and be approved for coverage. Failure to comply with the application requirement negates the Employee's eligibility to participate until an open enrollment period takes place. Open Enrollment occurs each year and during this period, changes in elections and enrollment may be made. Such changes, if made, will be effective January 1st of the next calendar year. Unless a qualifying condition is met, enrollment in this plan cannot be changed during the calendar year in which the election is made.
Note - Certain references have been made concerning other contracts and benefits such as life insurance, short term disability insurance, medical insurance etc. These references are provided as general guidance and are not a replacement or supplement to the terms and provisions of the actual contracts or benefit referenced. For specific information concerning these policies please contact Human Resource Services for further information.
4/15/05 |
