Benefits

LTD Summary of Benefits

• The premium for this benefit is entirely paid by the University.
• No enrollment form is necessary.
• The Long Term Disability plan provides financial protection if the employee should become totally disabled by sickness, injury or pregnancy.
• Benefits commence after 180 days of total disability and continue for the period of disability or until age 65. (Benefits may be payable beyond age 65 if disability commenced after age 60).

A brief outline of benefits by employee group are described below (additional details follow):

SUMMARY OF BENEFITS

The following information summarizes the University's Long Term Disability (LTD) program.

IF APPROVED FOR LTD BENEFITS, YOU WILL RECEIVE:

• Monthly income equal to 60% of your base monthly salary (in effect) as of your last day worked. The income will begin following 180 days of continuous total disability. This monthly Income Benefit will be offset (reduced) by any income received from the following. You will be eligible for a minimum monthly benefit of $50 if you are subject to any of the offsets described below.

  • Social Security for you and your dependents based on your wage record.

  • Workers' Compensation benefits

  • Benefits paid under your mandatory no fault automobile insurance.

  • Sick leave benefits or salary paid to you by MSU.

  • Federal Civil Service benefits.

• Continuing contributions (yours and the University's) to the base retirement plan paid by The Standard Insurance Company (The Standard). This applies to the TIAA/CREF base retirement only. If your base retirement plan is with Vanguard or Fidelity, you will be sent an annuity application to establish an account with TIAA/CREF.

• A 3% annual increase in monthly LTD income and contributions to the base retirement plan.

• Continuing MSU group health plan coverage with University contribution, if previously enrolled.

• Continuing MSU dental plan coverage with University contribution.

• Continuing Employee-Paid Life insurance benefits with premiums paid by the University, if previously enrolled.

• Course Fee Courtesy, if previously eligible.

THE FOLLOWING BENEFITS CEASE AS INDICATED:

• Expanded Life Insurance is terminated 180 days after your last day paid.

NOTE: You may convert this coverage to a private policy. To do so, contact the CIGNA Bethlehem Customer Service Center at 1-800-732-1603 for a conversion kit.

• Travel Accident ceases when an unpaid leave of absence begins.

• Supplemental Retirement contributions cease with your last regular payroll check.

• Educational Assistance ceases when an unpaid leave of absence begins.

Optional Accidental Death and Dismemberment may be continued as long as you continue to pay the premium.

FACULTY/ACADEMIC STAFF only:

• If you are appointed in a continuing appointment system (tenure system, Specialist continuing appointment system, Librarian continuing appointment system, Cooperative Extension Service continuing appointment system, National Superconducting Cyclotron Laboratory continuing appointment system), you will continue to accrue service towards retirement eligibility only up through the first two years of LTD status. Assuming appropriate medical authorization, you retain return rights to your current or equivalent position during the first two years of LTD status.

• If you are appointed in a temporary Faculty/Academic Staff position (appointment with an end date) and are eligible for LTD, you retain return rights to your current position only through the end date of the temporary appointment.

UNIVERSITY SUPPORT STAFF only:

• Once LTD is approved you will be placed on a medical leave of absence for up to two years, depending on your length of service. During the leave period only, you will continue to accrue service towards retirement eligibility. If you are a member of the Clerical-Technical Union, contact the Employment Office regarding bypass rights or refer to the union contract.

If Total Disability starts before age 60, benefits continue until age 65, recovery or death, whichever occurs first.

If Total Disability starts on or after age 60, but less than 65, benefits continue for 4½ years, recovery or death, whichever occurs first.

If Total Disability starts on or after age 65, but less than 68½, benefits continue to age 70, recovery or death, whichever occurs first.

If Total Disability starts at age 68½ or over, benefits continue for one year, recovery or death, whichever occurs first.

At age 65 or the end of LTD benefits (whichever is later), you will be eligible to begin drawing retirement benefits from your TIAA/CREF annuities (and the University Non-Contributory Retirement Plan, if eligible).

You may be able to draw your retirement benefits prior to that time. Contact the Benefits Office for specific information.

Continuation of University contributions toward your health and dental coverage after LTD ends will depend upon whether or not you have enough service as an active employee to meet University retirement requirements.