Long Term Disability
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. The Retirement Income Protection (RIP) protects ongoing contributions to your retirement plan in the event of your disability. See Long-Term Disability Plan document for more information.
Eligible employees will have guaranteed acceptance when enrolling as a new hire. Election of the LTD, or LTD with RIP, benefit during other times of the year will require Evidence of Insurability (EOI), also known as proof of good health.
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 | Bi-Weekly | Yearly |
|---|---|---|
| Long-Term Disability (LTD) | $0.00086 | $0.00187 |
| Long-Term Disability with Retirement Income Protection (LTD/RIP) | $0.00127 | $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.