Long term disability insurance provides a monthly benefit in the event of long term illness or injury. If an employee’s medical leave is expected to exceed 180 days, they may file an LTD application to receive benefits.
Long Term Disability Insurance Benefit
When an employee’s claim for the LTD insurance benefit is approved by the long term disability carrier, the LTD benefit provides the following:
- The benefit pays up to 60% of salary (maximum of $7,500 per month with a minimum of $100 per month). This benefit may be offset by any other supplemental income
- The benefit is payable for the duration of an employee’s disability or through age 65*
- Retirement contributions are continued by the LTD carrier to the eligible employee’s retirement account(s)
Employees are eligible for coverage under the Brown University LTD insurance plan after working 1300 hours per year for one uninterrupted year. Eligibility requirements may differ for employees covered by a previous employers LTD plan.
- The employee must submit an application to Brown University’s LTD carrier for a claim decision
- The employer (a Human Resources representative from the University) must submit an Employer Statement to Brown University’s LTD carrier
- The LTD vendor will notify the employee and employer of the claim decision
- The LTD benefit may begin after the employee has been unable to work for 180 days
University Benefits While on LTD
- Health, Dental, and Vision Insurance: Continuation of health and/or dental insurance is available, provided the employee continues to pay the appropriate active employee rate for the first six months of an approved LTD leave and the full group-rate premium thereafter.
- Life Insurance: Basic life insurance continues for the duration of the claim. The option to continue voluntary life insurance is available, provided the employee continues paying the required premiums.
- While on an approved LTD claim, even though the employee has no job rights, there is no disruption in the employee’s years of service calculation.
*Employees age 60 and over are paid according to the schedule found on page 11 of the Long Term Disability Policy - Liberty Mutual
This is a brief summary of information about Long Term Disability Insurance. Please reference the Long Term Disability Policy (the binding document) or contact the Benefits Office for further information.