Academic Disability Program Provost’s Department Chairs Leadership Program

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March 26, 2009

 

Agenda

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• Program Philosophy

• Medical Leave

• Long-Term Disability

• Resources for Difficult Situations

 

Medical Leave

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• Up to 3 months at full pay

• Some situations may not be paid

• Taxable to recipient

• Paid by the department

 

Medical Leave - Example

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• John is in a car accident on December 31, 2008. His medical leave begins on January 1, 2009.

• Assuming his doctor certifies that he is unable to work for this time period, his medical leave ends on March 31, 2009.

• John needs to call The Standard no later than January 14, 2009.

 

Long-Term Disability

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• Most faculty and P&A staff who hold a 67% appointment for a minimum of 9 months in a year are eligible. Participation is automatic and coverage begins on the first day of employment.

• Benefits begin at the fourth month of disability and continue to normal retirement age under Social Security. Benefit durations differ for individuals who become disabled at age 62 or older.

• Self-insured for months 4 through 12, insured benefit with The Standard beginning month 13

 

Long-Term Disability Components

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• Income replacement

• Subsidized health coverage

• Retirement plan contributions

• Waived life insurance premiums

 

Long-Term Disability Income Replacement

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• Self-Insured Benefit – Depending on years of service, faculty may receive from 66 2/3% to 100% of expected salary for up to a maximum of 12 months from date of onset.

• Insured Benefit – Beginning month 13, The Standard provides 66 2/3% of pre-disability earnings.

• Income replacement is taxable to the recipient.

 

Long-Term Disability - ExampleIncome Replacement

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• John has 10 years of service, holds a 12 month appointment, earns $80,000 annually and continues to be certified as totally disabled.

• He will receive 100% of pay beginning on the date of his accident, December 31, 2008, through December 30, 2009.

• If he continues to be certified as disabled past this date, he will receive 66 2/3% of pay, beginning December 31, 2009.

 

Long-Term Disability Subsidized Medical and Dental Coverage

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• Depending on length of service, University subsidy to medical and dental care continues for up to a maximum of 24 months total.

• After the end of the subsidy period, medical and dental coverage can be continued indefinitely during a period of disability by paying the full cost of the benefit.

 

Long-Term Disability - ExampleSubsidized Medical Coverage

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• John has 10 years of service, holds a 12 month appointment, and continues to be certified as totally disabled.

• He will pay the same amount for his medical coverage as an active employee through December 30, 2010.

• If he continues to be certified as disabled past this date, he can purchase medical coverage (by paying full cost of the benefit) indefinitely.

 

Long-Term Disability Retirement Plan Contributions

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• Faculty Retirement Plan contributions will continue to be made during a certified period of disability.

• If totally disabled, no employee contributions are required during this time, yet the contributions continue to be funded at the full amount of 15.5% of covered salary.

• Contributions continue while receiving disability benefits. If not yet eligible for the plan, no contributions are made.

 

Long-Term Disability Waiver of Life Insurance Premiums

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• Life insurance coverage remains in effect while on disability.

• After 6 months of total disability, no premium payments are required, based on a waiver provision in the UPlan’s life insurance policy.

• The waiver remains in force as long as the recipient continues to be certified as disabled, until his or her 70th birthday.

 

Long-Term Disability Difficult Situations

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• Phased Retirement

• Partial Disabilities

• Recurring Disabilities

• Accommodations

• Outside Income

 

Need Additional Information?

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Employee Benefits

Kathy Donohue 626-0094

Katie Deno 626-6274

www.umn.edu/ohr/benefits/disability/index.html

UReturn

612-624-3316

ds.umn.edu/ureturn