|
Long
Term Disability Insurance
All eligible faculty and staff are
covered under the College's basic group long term disability (LTD)
insurance plan through MetLife and
may choose to be covered under the plan's supplemental option.
Coverage under
both the basic plan and the supplemental option is available at
the first day of the month coinciding with or immediately following
date
of employment. Employees must complete an enrollment form within
31 days of hire or eligibility. Specific details about the LTD
insurance
plan may be found in the Long Term Disability Summary Plan Description.
What does Long Term Disability Insurance Provide?
LTD insurance provides 24-hour protection against the loss of your
income in the event that a disability prevents you from working
and earning an income.
What is My Risk of Needing Long Term Disability Insurance?
Your risk of needing long term disability insurance is greater
than you may expect.
- 3 out of 10 workers between the ages of 35 and 65 will become
disabled for 90 days or longer. (1987 Commissioner's Group Disability
Table)
- Nearly 1 in 7 people will become disabled for 5 years or more
prior to age 65. That number increases to nearly 1 in 5 for ages
35 to 62. (Ibid.)
- 48% of home mortgage foreclosures are due to disabilities.
If I Have Health Insurance, Why Do I Need LTD Coverage?
Health Insurance will help you cover any medical expenses you have
as a result of your disability. But you will still have all the
day-to-day expenses you have now. Medical insurance will not help
you make up for any loss of income you may experience. Without LTD
insurance, you may have to rely on your savings to maintain your
current lifestyle. If your disability were to last for any significant
length of time, this could have a considerable impact on your financial
security.
How Does LTD Coverage Work?
If you are disabled according to your policy's definition of disability,
you will be eligible to receive a monthly benefit based on a percentage
of your monthly income. Benefits begin after your Elimination Period
of 180 days and are paid for as long as you continue to meet the
policy's definition of disability for the benefit duration shown
in your policy. You would not be required to pay your premium during
the time you are receiving benefits.
Are There Any Instances When Benefits Would Not Be Paid?
Benefits would not be paid for disabilities caused by:
- active participation in a riot
- war, declared or undeclared
- self-inflicted injuries such as attempted suicide
- pre-existing conditions (see definition below)
Eligibility
Faculty - Faculty members are eligible to participate in these
benefits if they have at least a half-time appointment.
Staff - Staff members are eligible to participate if they are regularly
scheduled to work at least 17 ½ hours per week for either
the academic or fiscal year. Staff members in Dining Services and
Facilities Management are eligible if they are regularly scheduled
to work at least 20 hours per week.
Effective Date
Your effective date of coverage is July 1 of each year or the
first day of the month coinciding with or immediately following
your date of
employment.
Definition of Disability
You will be considered disabled and eligible for benefits if because
of injury or sickness you cannot perform each of the material duties
of your regular occupation; and after benefits have been paid for
24 months, you cannot perform each of the material duties of any
gainful occupation for which you are reasonably fitted by training,
education and experience; or while you are unable to perform all
of the
material duties of your regular occupation or another occupation
on a part-time or full-time basis; and your earnings are at least
20% less per month than your pre-disability earnings due to that
same injury or illness.
Monthly Benefit Amount
Mount Holyoke College is providing a base benefit of 40% of your
basic monthly earnings, to a maximum monthly benefit of $6,666.
You may elect to increase your coverage by choosing one of the
following supplemental coverage options:
- 50% of your basic monthly earnings to a maximum monthly benefit
of $8,333
- 60% of your basic monthly earnings to a maximum monthly benefit
of $10,000
- 66 2/3% of your basic monthly earnings to a maximum monthly
benefit of $12,000
Benefit Duration
As long as you continue to meet the definition of disability, you
would receive a benefit to the age of 65 if you become disabled
prior to age 60. If you are disabled between ages 60 and 70, you
will receive benefits for 5 years or until age 70, whichever comes
first. If you are disabled after age 70, you will receive 12 months
of benefits.
Elimination Period
Benefits would begin after 180 consecutive days of disability.
Guaranteed Issue
If you apply during the open enrollment period, coverage is offered
to you without having to answer any medical questions. After the
open enrollment period, you will have to qualify for coverage.
Pre-Existing Condition
You would not be eligible to receive a benefit if your disability
is caused by a pre-existing condition which begins in the first
12 months after your effective date. A pre-existing condition is
one for which you receive medical treatment, care, or services,
including diagnostic measures, or took prescribed drugs or medicines
in the 3 months prior to your effective date of coverage.
Retirement Plan Rider
If you are a participant in the college's defined contribution
403(b) pension plan, an additional benefit will be payable to your
403(B)
plan if you become disabled. If you are enrolled in the 40% plan,
this benefit will be 8% of your salary to a maximum of $700 per
month. If you are enrolled in the 50%, 60% or 66 2/3% plan, this
benefit will be 15% of your salary to a maximum of $2,500 per
month.
These contributions are made to the basic Retirement Annuity Plan
only and will continue for the period of time you receive LTD
benefits.
Cost of Living Adjustment
While you are out totally disabled, your benefit will be adjusted
by 3%, once per year, for the duration of your disability.
Waiver of Premium
You will not have to pay your premium during the time you are receiving
disability benefits.
Survivor Benefit
If you have been disabled for 180 days and are receiving LTD insurance
benefits and you die, a benefit will be paid to your survivors to
help support them with immediate costs associated with the loss
of your income. This benefit is equal to 3 times your monthly benefit
and is payable to your spouse, children, or estate.
|
