Short Term Disability
Short-Term Disability coverage, provided by Unum, is a new benefit for 2018. STD provides Faculty & Staff paid leave for illnesses and injuries lasting more than 14 or 30 days, up to 22 or 24 weeks, depending on which option you choose. You must exhaust all of your sick time prior to the Short-Term Disability benefit providing income replacement. See the Short Term Disability plan document for more information.
- Benefits are based on a per $10 of weekly benefit calculation
- Benefit amount is 60% to a maximum benefit of $1,500 per week.
- Maximum weekly covered salary is $2,500 ($130,000 of annual income)
Example: Employee earning $80,000 per year
Calculation: Annual base salary divided by 52 to determine weekly income
Weekly income ($1,538) x 60% = Weekly benefit ($923)
14-day elimination period option rate = .395
Monthly cost: .395 X $923 = $364 divided by $10 = $36.46 per month (Rate x weekly benefit divided by $10 = monthly contribution)
30-day elimination period option rate = .265
Monthly cost: .265 x $923 = 244.60 divided by $10 = $24.46 (Rate x weekly benefit divided by $10 = monthly contribution)
| Coverage | Bi-Weekly | Monthly |
|---|---|---|
| Option 1: (14-day elimination period) | $0.182 | $0.395 |
| Option 2: (30-day elimination period) | $0.122 | $0.265 |
Pre-existing Condition
The “pre-existing condition” does apply to the Short Term Disability benefit plan. The pre-existing period is 3 months prior to and 12 months after the effective coverage date. What is considered a pre-existing condition? You have a pre-existing condition if:
- You received medical treatment, consultation, care or services including diagnostic measures, or took prescribed drugs or medicines in the 3 months just prior to your effective date of coverage; and
- the disability begins in the first 12 months after your effective date of coverage.
For example, since the effective date is January 1, 2018 for those who enroll during Open Enrollment, if the individual has treatment for a condition during October, November or December 2017, and then they apply for short-term disability benefits anytime during 2018 for that SAME condition, they will not be approved. The individual in this example would be eligible in 2019 for that same condition, as the pre-existing period will have elapsed.