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Disability Insurance
SHORT-TERM DISABILITY PROTECTION | HOW STD WORKS | WHAT
IS A LATE ENROLLMENT PENALTY FOR LATE ENTRANTS? | LONG-TERM DISABILITY PROTECTION | HOW LONG LTD BENEFITS MAY BE PAYABLE? | ENROLLING FOR LONG-TERM DISABILITY COVERAGE |
ELIGIBILITY FOR AN EARLY DISABILITY RETIREMENT
To help provide income protection against the unexpected, the Flexible Benefits Program
allows you to choose:
- short-term disability insurance and/or
- long-term disability insurance.
Short-Term Disability Protection
If you choose short-term disability (STD) coverage, this plan will work with other income
benefits to replace 60% of your Benefit Salary (in effect during the Plan Year the
disability began) up to $800 per week. Other benefits include Social Security, workers'
compensation, any other governmental disability programs, any other group disability plans
including the State retirement systems, or special injury benefits you are eligible to
receive. If these other benefits total more than 60% of your Benefit Salary, the
short-term disability plan will not pay for this disability.
HOW STD WORKS
The terms of the STD plan are set forth in the Summary Plan Description for the disability
options.
In general:
- If your claim is approved by the insurance company, you are eligible to receive
short-term disability benefits after you have been disabled for 30 continuous calendar
days or 7 continuous calendar days depending on the coverage level you have chosen.
- A late enrollment penalty may apply for late entrants to the STD plan (employees who do not elect STD when first eligible).
- You may choose whether to use sick leave or receive these benefits. You cannot receive
these benefits and sick leave at the same time. You may, however, decide to receive these
benefits and save your sick leave for future use.
- Your short-term disability benefits are calculated on the Benefit Salary that is in
effect during the Plan Year your disability began, less other income benefits. For
example, if your first day of disability is December 3, 2007, your disability benefit will
be calculated on the Benefit Salary reflected on your 2007 salary, not your 2008 Benefit
Salary.
- Your short-term disability benefits can continue until you recover, return to work, or
receive benefits for a maximum of 150 calendar days or a maximum of 173 calendar days,
depending on the coverage level you have chosen. The calendar-day maximums are reduced by
any days of paid sick leave, donated leave or Special Injury Leave that you use which
exceeds the applicable wait period.
- When changing from the 30-day Benefit Waiting Period to the 7-day Benefit Waiting
Period, a Pre- Existing clause is applicable. If you have a condition for which you should
have sought medical care or which originated prior to the 7-day Benefit Waiting Period
effective date, you will be subject to the rules of the 30-day Benefit Waiting Period.
What Is A Late Enrollment Penalty For Late Entrants?
A current employee choosing coverage for the first time or re-enrolling after
discontinuing coverage is considered a late entrant. If your STD Disability is caused by
an accidental injury, benefits will begin after you have been disabled for 30 continuous
calendar days or 7 continuous calendar days depending on the coverage level you have
chosen after the benefit waiting period is satisfied for STD. However, for STD late
entrants, who become disabled due to Physical Disease, Pregnancy, or Mental Disorder,
during the 12-month period after the date your STD insurance becomes effective, benefits
will not begin until after you have been disabled for 60 days. For STD late entrants whose
disabilities begin after this 12 month period, benefits will start after the benefit
waiting period (7 or 30 continuous calendar days) is satisfied for STD.
If you have any questions about eligibility or how the short-term and long-term
disability insurance plans work, call 1-888-641-7186.
Enrolling For Short-Term Disability Coverage
Your premiums will be based on your
coverage level and Benefit Salary. You pay for this coverage with after-tax premiums. You
won't pay taxes on the benefits you receive.
Long-Term Disability Protection
The Flexible Benefits Program's long-term disability (LTD) coverage works with other
benefits you are eligible to receive, including Social Security, workers' compensation,
other governmental disability programs, any other group disability plans including the
State retirement systems, or any special injury benefits you are eligible to receive. The
plan assures that your combined disability benefits from all these sources will equal 60%
of your pay as shown on your Option Statement, up to $4,000 a month. The plan will pay at
least $100 a month, even if your disability benefits from all other sources total more
than 60% of your Benefit Salary, up to $4,000 a month, unless you are in an overpayment
situation.
How Long LTD Benefits May Be Payable
These benefits will begin after you have been disabled for 180 calendar days and are
reduced by any sick leave you use. Long-term disability benefits end when you are no
longer disabled or reach age 65, except benefits for disabilities caused by mental
disorders, or other limited conditions (excluding schizophrenia, bi-polar or organic brain
disease), which are limited to two years. If you become disabled after reaching age 60,
however, your benefits could continue for a limited period after age 65.
For the first two
years of your disability, you are disabled if you cannot perform your occupation, and earn
less than 80% of your monthly Benefit Salary from your employer. After that, you are
disabled if you are unable to perform, with reasonable continuity, the material duties of
any occupation and cannot earn more than 60% of your monthly Benefit Salary from any
employer.
Enrolling For Long-Term Disability Coverage
Your cost for long-term disability coverage is based on your age, your FICA Status,
Benefit Salary, and whether or not you are eligible for disability coverage through any
State of Georgia retirement plan, and/or through Social Security.
- Long-term disability premiums are paid with pre-tax dollars. The Internal Revenue
Service (IRS) considers these premiums to be taxable income.
- If you become disabled and receive long-term disability benefits, you will be
responsible for paying taxes on your benefits from this plan. However, since your income
from disability benefits would be lower than your salary, you would owe less in taxes.
If you are selecting LTD insurance for the first time, click here for the medical underwriting process.
Eligibility For An Early Disability Retirement
At total and permanent disability, some employees are eligible for early retirement
through a State retirement system, as long as the disability is considered permanent. For
the Employees' Retirement System, you may call 404-350-6300 for more information. For the
Teachers' Retirement System, you may call 404-352-0650 or toll free at 1-800-352-0650.
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