Long Term Disability (LTD) Policy for Administrative Professional Staff 2.1-4

Introduction/Purpose:

Saginaw Valley State University’s group long term disability “LTD” insurance benefits provide Administrative Professional employees financial protection during an extended absence due to a personal health condition.

Policy: 

Employees must be employed for one full year and be assigned to a position that requires 30 hours or more per week to be eligible for coverage under SVSU’s group long term disability plan.  The one-year waiting period will be waived if the employee has been covered by a group long term disability plan within the three-month period prior to employment at SVSU. 

Group long term disability (“LTD”) insurance provides an income replacement benefit of 70% of an employee’s pre-disability earnings when an employee has been absent from work due to sickness or injury for a continuous period which exceeds 90 consecutive calendar days or the end of accumulated sick leave, whichever is greater.  An employee is eligible to collect benefits after fulfilling an elimination period which is the greater of:

• 90 consecutive calendar days absenteeism due to sickness or injury

OR

• the exhaustion of the employee’s sick pay (not to include any new allowances of sick pay should the leave extend through July 1^st) whichever is greater.

The benefit amount and other insurance provisions are subject to the LTD insurance plan documents, which control in all circumstances.  Refer to the Long Term Disability Plan Document (197KB) for further information.   

Continuation of Other Benefits:

Medical, dental and vision benefits will continue through the elimination period, after which the employee will have the option to continue them through COBRA.  In the alternative, if an employee is eligible and chooses to retire, the employee may purchase retiree health benefits.

The amount of time that group life insurance benefit payments are made is determined by the disability insurance carrier. Employees will be notified when payments for group life insurance benefits stop.

Continuation of Status:

If an employee’s absence extends beyond the approved Family Medical Leave, the University reserves the right to determine whether an employee’s position will be posted or temporarily filled, based on departmental needs. Any reasonable accommodation can be made as provided by the Americans with Disabilities Act. 

Procedures:

The Human Resources Department provides long term disability benefit applications and procedures to file a claim.  Due to the length of time to process and approve a claim, employees are encouraged to request a disability benefit application as soon as it becomes apparent that the need for a leave of absence may extend beyond 90 consecutive calendar days or the end of accumulated sick leave whichever is greater.

When an employee is released to return to work, a written medical release slip will be required prior to the employee’s return. The release slip must be submitted to the Human Resources Department and include the release to work date with any medical restrictions and the period restrictions apply.  If the employee’s current position is no longer available, the employee will be eligible to apply for other positions at the University. 

Definitions:

Elimination Period - the greater of 90 consecutive calendar days absenteeism due to sickness or injury or the exhaustion of the employee’s sick pay (not to include any new allowances of sick pay should the leave extend through July 1^st) whichever is greater.

Related Policies & Forms:

Paid Sick & Family Illness Time for AP's 2.1-1

Family Medical Leave Policy 2.1-2

Vacation for AP Holding Regular Positions 2.2-1

Disabilities Policy for Employees & Students 4.3-3

Long Term Disability Plan Document (197KB)

Appendix:

N/A

Reviewed 6/18/2020