Long Term Disability
There are two types of Long-Term Disability (LTD) plans offered through Unum for Penn State employees. There is an option for LTD only or an option for LTD with Retirement Income Protection (RIP).
Depending on your salary, upon an approved LTD claim you can receive 60% of your salary up to a maximum of $10,000 per month.
Long-Term Disability (LTD)
Long-Term Disability (LTD) provides you and your family with protection from loss of your income if you become unable to work because of an accident, illness, or injury.
Long-Term Disability with Retirement Income Protection (LTD/RIP)
You may also choose the LTD plan option that is coupled with Retirement Income Protection (RIP) that provides protection toward your retirement plan contributions, and your long-term retirement goals, in the event of your disability. If you become disabled and qualify for LTD payments per the above maximums, the RIP would continue contributions.
The contribution will be equal to 14.29% of your pre-disability income and is available to participants in both the State Employee's Retirement System (SERS) and the TIAA retirement plans, but the RIP contributions will be sent to a TIAA retirement plan on your behalf.
Long-Term Disability (LTD) Certificate of Coverage
Premiums
Your premiums are determined by your gross salary and by whether you choose only the long-term disability coverage, or you elect to include the Retirement Income Protection (RIP), formerly know as Annuity Premium Benefit (APB), as well.
| Coverage | Monthly |
|---|---|
| Long-Term Disability (LTD) | $0.00187 |
| Long-Term Disability with Retirement Income Protection (LTD/RIP) | $0.00276 |
LTD calculation example using the above yearly rate to calculate the per pay premium contribution:
Monthly: $50,000 salary x $0.00187 = $93.50 per year; $93.50 yearly premium / 12 monthly pays in the year = $7.79 premium per pay
Bi-weekly: $50,000 salary x $0.00187 = $93.50 per year; $93.50 yearly premium / 26 bi-weekly pays in the year = $3.60 premium per pay
RIP calculation example using the above yearly rate to calculate the per pay premium contribution:
Monthly: $50,000 salary x $0.00089 = $44.50 per year; $44.50 yearly premium / 12 monthly pays in the year = $3.71 premium per pay
Bi-weekly: $50,000 salary x $0.00089 = $44.50 per year; $44.50 yearly premium / 26 monthly pays in the year = $1.71 premium per pay
Retirement Income Protection
This is an optional coverage that is available with the LTD program. If you become disabled and qualify for long-term disability payments, the Retirement Income Protection (RIP) would continue contributions to a retirement plan for you.
The contribution will be equal to 14.29% of your pre-disability income and is available to participants in both the State Employee's Retirement System (SERS) and the TIAA retirement plans. Regardless of your retirement plan selection, RIP contributions will be made to a TIAA account.
Continuing Coverage After Leaving Penn State
If you have been covered on the Long Term Disability benefits under Penn State's group LTD plan for at least 12 consecutive months and your employment terminates while insured with Unum Life Insurance Company of American (Unum), you may be eligible to convert your policy and become insured under the Unum Group Long Term Disability Conversion Policy.
To be eligible to convert, your coverage must have ceased due to your termination of employment from Penn State. If you become insured under another employer's group plan within 31 days after termination and have already applied for conversion, you are required to notify Unum.
You will be eligible for insurance on the day your coverage terminated under Penn State.