Long-Term Disability (LTD) coverage is designed to pick up where A&B's sick leave benefits leave off. If, after 26 weeks, you are still unable to work due to an illness (including pregnancy) or accidental bodily injury, you may be eligible to receive LTD benefits.
When describing how the LTD Plan works, references will be made to certain terms that are defined in the Definitions. Note that the Insurance Company providing this LTD coverage is responsible for making the final decision regarding an individual's qualification for benefits; in so doing, it has full discretion and authority to interpret all the terms and provisions of this Plan.
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Coverage Amounts
When you enroll in FlexSolutions, you may choose from three levels of coverage.
As outlined below, the election you make, plus your salary, determine the amount of LTD benefits you may receive in the event you become disabled.
| LTD Coverage Options |
| If You Elect ... |
Your LTD Benefit Amount Will Equal |
Up To a Monthly Maximum Of... |
|
Option 1
|
50% of your monthly base salary*
|
$8,000**
|
|
Option 2
|
60% of your monthly base salary*
|
$9,000**
|
|
Option 3
|
70% of your monthly base salary*
|
$10,000**
|
|
* Your monthly base salary for the purposes of LTD benefits is your Basic Monthly Earnings.
** Reflects a $3,000 increase in the maximum benefit amount for disabilitites that begin on January 1, 2006 or later, subject to the plan's pre-existing condition limitation.
|
If your salary changes during the year, your potential LTD benefit amount will automatically change accordingly. However, your cost per pay period will not change until the next Plan Year.
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Enrollment Rules
Core Coverage
LTD coverage is part of the "core" package of FlexSolutions benefits. This means that you must elect at least the Option 1 level of coverage. If you do not enroll in FlexSolutions when you are first eligible to do so, and during each Open Enrollment thereafter, you will automatically receive the core coverage amount.
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Increasing Your Coverage
When you first elect a coverage option under the LTD Plan, you may elect any level. During subsequent Open Enrollments, you may increase your coverage option election by one level. Increases of more than one level are not permitted.
For any increased coverage amount to take effect, you must be an active full-time employee, and not absent from work due to a disability, on the date your increase would otherwise go into effect (usually January 1 following the annual FlexSolutions Open Enrollment). If you are absent due to a disability on the date your increased coverage would otherwise go into effect, the increased coverage amount will not take effect until you return to work one full day.
Note that once you elect a coverage amount it remains in effect throughout the Plan Year, unless you experience a "change in status" and you elect to change your coverage amount by notifying your local Human Resources representative within 31 days of the event. The only other time you may change your coverage amount is during the annual FlexSolutions Open Enrollment.
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