Long Term Disability (LTD)

The GIC’s Long Term Disability (LTD), is administered by Unum. LTD is an income replacement program that protects you and your family in the event you become disabled and are unable to perform the material and substantial duties of your job.   

How would you pay your bills if you became seriously ill? When disaster strikes, it’s easy to fall behind on mortgage and other essential payments. In fact, more than one-quarter of bankruptcy filers cited illness or injury as the reason for the filing, according to a 2005 issue of Health Affairs. This is why a salary replacement plan is an important benefit for you and your family.

If you become ill or injured and are unable to work for 90 consecutive days, this program will provide you with:

• A tax-free benefit of up to 50% of your gross monthly salary
• A benefit for mental health disabilities and for partial disabilities
• A habilitation and return-to-work assistance benefit
• A dependent care expense benefit

Benefits are reduced by other income sources, such as Social Security disability, Workers’ Compensation, and accumulated sick leave and retirement benefits, however, the minimum benefit will be $100 or 10% of your gross monthly benefit amount, whichever is greater.


Enrollment
All active full-time and half-time state employees who work at least 18.75 hours in a 37.5 hour work week or 20 hours in a 40-hour work week are eligible for LTD benefits. New employees may enroll in LTD without providing evidence of good health within 31 days of hire. All eligible employees can apply for LTD coverage during annual enrollment, or any time during the year. You must provide proof of good health for Unum’s approval to enter the plan.

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Eligibility

All active full-time and half-time state employees who work at least 18.75 hours in a 37.5 hour work week or 20 hours in a 40-hour work week are eligible for LTD benefits. New employees may enroll in LTD without providing evidence of good health within 31 days of hire.

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Many State Employees Unprepared for Risk of
Inability to Work

If you are in an accident, become ill and cannot earn a paycheck, how will you pay your mortgage, car payment, utilities, and living expenses? Most Americans are financially prepared for death, but they have not prepared for the possibility of not being able to work. Yet, the probability of becoming disabled and unable to work between the ages of 35 and 65 is significantly higher than dying.

Disability strikes one in four workers before age 65. The financial repercussions of disability can be disastrous. According to the US Department of Housing and Urban Development, 46% of conventional mortgage foreclosures were attributed to disability and only 2% to death.

Active state employees participate in long-term-disability (LTD) benefits at a lower rate than national averages; only 32% participate compared with the national average of 35%. However, unlike most Americans, State employees have the opportunity to obtain LTD insurance at an attractive rate. LTD replaces up to 50% of your regular pay on a tax free basis to a maximum monthly benefit payment of $10,000. It begins after you have been totally disabled for 90 consecutive days.

How to File a LTD Claim