Long-term Disability Insurance
Eligibility for Coverage
Full-time Franklin & Marshall faculty and professional staff are eligible for long-term disability insurance coverage effective the first of the month following, or coinciding with, completion of one year (365 days) of full-time service. The one year waiting period will be waived for any new full-time employee who, within three months of his/her full-time employment with the College, was insured through the previous employer under a group policy providing income benefits for a minimum of five years of total disability. New employees who meet this waiver requirement must provide Human Resources with written verification, from the previous employer, of prior group long-term disability coverage within 31 calendar days of their employment with the College.
Premiums
Franklin & Marshall College pays the full cost of the premiums for this benefit as part of the employee's total compensation package.
In the event monthly income benefits are paid as a result of disability, such payments are considered taxable income to the employee.
Long-term Disability Monthly Benefit
Long-term disability insurance provides a monthly income benefit in the event of total disability lasting more than six consecutive months. A full-time College employee who has been totally disabled and unable to work for six consecutive months (180 calendar days) is eligible for long-term disability income benefits as described in the Certificate of Insurance, upon approval of his/her application for benefits by the insurance carrier. Benefits are payable as of the 181st day of disability, with the first payment generally issued at the end of the 6th month of total disability. In the event of total disability, the insurer will provide a monthly income benefit to the disabled employee equal to 60% of the employee's actual monthly salary in effect on the day before disability begins (excluding overtime pay or other forms of additional compensation), up to a maximum monthly benefit of $10,000. This long-term disability benefit is taxable, and will be reduced by income from other sources payable due to the disability, including, but not limited to, unemployment compensation, Workers' Compensation, Social Security disability benefits, motor vehicle disability benefits, and United States or foreign government programs for the employee or for the employee's dependents.
Please note that an employee's long-term disability coverage level will fluctuate (increase or decrease) as his/her salary changes.
Retirement Annuity Benefit
In addition to the monthly income benefit, the Plan provides employees who were eligible for the College's contribution to the Retirement Plan immediately prior to total disability a monthly retirement annuity premium benefit equal to 12% of pre-disability basic monthly salary (equal to 15% for an employee appointed to a full-time position on or before July 1, 2006, and receiving a 15% College contribution to the Retirement Plan immediately prior to the commencement of disability), up to $2,500 per month. This retirement premium is paid to the Plan Administrator and credited to a Franklin & Marshall retirement account as elected by the employee.
Partial Disability
A partial benefit may be payable to an employee who is able to perform some, but not all of his/her job due to an injury or illness.
Survivor Benefit
If an employee dies while receiving long-term disability benefits, his/her survivor will receive a one-time payment equal to three times the employee's last monthly LTD benefit.
Applying for Benefits
To apply for long-term disability benefits, an eligible employee who has been disabled for 4 consecutive months, and is expected to be disabled for at least 6 consecutive months, must contact Human Resources for a long-term disability insurance application. Portions of the application must be completed by the employee and the employee's treating physician, and then submitted to Human Resources.
Continuation of Life Insurance Coverage
Life insurance coverage will continue during an approved total disability period under certain conditions, as outlined in the Certificate of Insurance. An employee applying for long-term disability benefits should contact Human Resources regarding continuation of life insurance coverage.
Termination of Long-term Disability Insurance Coverage
Long-term disability insurance coverage terminates upon retirement; employment termination; commencement of an unpaid leave of absence, other than an approved Family & Medical Leave; or a change from full-time to part-time status. If an employee is receiving long-term disability benefits prior to employment termination, benefits will continue, according to the provisions of the Plan, if the employee continues to be totally disabled and otherwise eligible.
Employment Status and Other Fringe Benefits
An employee who is unable to perform the essential functions of his/her job may request a Personal Leave of Absence upon the later of expiration of paid sick leave benefits or Family & Medical Leave, and before LTD benefits commence. At that time, the individual will be placed on "inactive" employment status.
In the event a disability prevents an employee from working, coverage through the College's Health Insurance & Prescription Drug Plan will terminate at the end of the calendar month in which paid sick leave expires or Family & Medical Leave expires, whichever occurs last. An employee may then elect to continue health insurance coverage for him/herself and any covered dependents by applying and paying the applicable premiums, in a timely manner, for "COBRA". To continue coverage, the employee must pay the full cost to the College for health insurance and prescription drug benefits, plus a 2% administrative fee. More information about health insurance continuation rights is available in the Health Insurance & Prescription Drug Summary Plan Description.
Eligibility for other fringe benefits and programs ceases when paid sick leave benefits expire or Family & Medical Leave expires, whichever occurs last. (Information about paid sick leave benefits is available at Paid Sick Leave for Faculty and Paid Sick Leave for Professional Staff.)
Upon enrollment in the Plan, employees will be provided with a Certificate of Insurance and a Long-term Disability Summary Plan Description, which should be read carefully for important details about coverage and exclusions.
