SECTION 6.40  LONG-TERM DISABILITY INSURANCE

Last Update:  1/08

 

 

The State’s group long-term disability (LTD) insurance is administered by The Hartford (Hartford).  LTD insurance covers employees on and off the job.

 

Eligibility

 

All active full-time employees with probationary or permanent status who are scheduled to work 30 or more hours per week are eligible for LTD insurance.

 

Enrollment

 

An employee is automatically covered by the group LTD plan on the first day of the month following 30 days of continuous employment.

 

Effective Date of Insurance

 

LTD insurance is effective the first day of the month following 30 calendar days of continuous employment.  If the first day of employment is the first working day of the month, insurance is effective the first day of the following month.

 

Termination

 

Termination of insurance occurs the last day of the month in which the employee terminates employment or ceases active work, unless the employee stops working due to illness, injury or family medical leave.  There is no conversion policy for LTD insurance.

 

Employees who have a medical release to return to work may submit an application to the Iowa Department of Administrative Services – Human Resources Enterprise (DAS-HRE) to be put on the recall list.

 

Benefits

 

 

  • There is a 90 working day waiting period before benefits can be paid.

 

  • During the first 12 months, “disabled” means that due to illness or injury, the employee is unable to perform the duties of the position that the employee currently occupies.  After the first 12 months, “disabled” means that the employee is unable to perform the duties of any position for which the employee is experienced, trained, or educated.

 

  • For disabilities that began prior to January 1, 2007, the monthly benefit is the following percentage of the employee’s monthly salary,.  Up to $40,000 of annual salary is covered by the plan:

-          60% for employees with two or more years State employment

-          40% for employees with between one and two years State employment

-          20% for employees with less than one year State employment

 

  • For disabilities that begin on or after January 1, 2007, the monthly benefit is 60 percent of the employees monthly salary (up to $60,000 of annual salary is covered by the plan).

 

  • LTD benefits are reduced by Social Security Disability Income and by Worker’s Compensation benefits.  LTD benefits are not reduced by IPERS.

 

  • If the carrier continues to approve benefits, the employee’s benefits continue:

-          to age 65, but not less than five years, for employees who are disabled before age 61

-          60 months, but not beyond age 70, for employees who are disabled between the ages of 61 and 69

-          one year, for employees who are disabled after age 69

 

·         For disabilities that began prior to January 1, 2007, the maximum monthly LTD benefit is $2,000 and the minimum is $50.

 

·         For disabilities that begin on or after January 1, 2007, the maximum monthly LTD benefit is $3,000 and the minimum is $50.

 

Claim Filing

 

Claims need to be filed as soon as an employee has ceased active work due to an illness or injury.  All LTD forms are supplied by your department’s Personnel Assistant.  The employee’s physician must complete the “Attending Physician’s Statement” and the employee must complete the employee’s portion of the LTD claim.  When both forms are returned, the Personnel Assistant will complete the employer’s section of the LTD claim and forward the claim to DAS-HRE for processing.  The carrier will notify the employee and DAS-HRE of the approval or denial of the claim.  DAS-HRE will notify the department upon receipt of the decision.

 

For more information, contact your department’s Personnel Assistant.