Long-Term Disability (LTD) is an income replacement plan which provides you with either 40% or 60% of your basic monthly earnings up to a maximum monthly benefit of $12,000. This is a voluntary benefit, meaning that if you enroll in LTD you will pay the full cost of coverage. The cost is deducted from your paycheck after taxes are taken. If you have an LTD benefit paid out to you, it will not be taxed on it.
LTD benefits begin 180 days after your disability begins so it's important to contact the Leave of Absence Specialist as soon as you think you may need to request a leave of absence. LTD is administered by Prudential Company of America.
As a new hire, you are automatically enrolled in the 60% option for Long Term Disability. If you wish to change to the 40% option or opt out of participation in the plan, you may do so within your 31-day new hire enrollment period.
Alternatively, if you do not enroll as a new hire or want to increase your coverage, you can apply for coverage during any subsequent annual Open Enrollment period, which usually takes place in October/November each year.
To apply, please complete the Short Form Health Statement and follow the directions on the form to submit it directly to our LTD provider, Prudential.
You have two options to enroll in LTD coverage:
- A 40% coverage level rate at $0.247 per $100 of earnings
- A 60% coverage level rate at $0.579 per $100 of earnings
Calculating your Monthly Premium
If your base salary is $30,000 and you enroll in the 40% option, the cost is calculated as follows:
- $30,000/$100.00 x $0.247/12 = $ 6.18 per month
If your base salary is $30,000 and you enroll in the 60% option, the cost is calculated as follows:
- $30,000/$100.00 x $0.579/12 = $14.48 per month
If your base salary is $50,000 and you enroll in the 40% option, the cost is calculated as follows:
- $50,000/$100.00 x $0.247/12 = $10.29 per month
If your base salary is $50,000 and you enroll in the 60% option, the cost is calculated as follows:
- $50,000/$100.00 X $0.579/12 = $24.13 per month
If your disability begins before age 60, your LTD benefits are payable until your normal Social Security retirement age. If your disability begins after age 60, your benefits are pro-rated until age 69, with a minimum duration of 12 months from age 70 onward.
If you enroll, you also have access to enhanced benefits, including a conversion provision and a critical illness benefit.
- A conversion provision means that you can convert your coverage to an individual policy if you leave the university for other employment.
- The critical illness benefit pays an additional monthly amount for certain conditions. See the Long-Term Disability Description of Benefits for more details.
There is a pre-existing condition limitation for the 12 months following your new enrollment or increase in coverage level. This means that the insurance company, Prudential, will not cover a disability that is already known for 12 months from the date of your LTD plan enrollment or the date your increased benefit takes effect.
After the 12-month waiting period, any pre-existing conditions will be covered per the standard Prudential policy. Please see the Long-Term Disability Description of Benefits for more detailed information.
For more information, review the Long-Term Disability Description of Benefits or contact Tufts Support Services (TSS) by email or phone at 617-627-7000.