A long-term disability (LTD) program is available to all regular full-time faculty and staff. Underwritten by The Standard Insurance Company, the LTD program provides you and your family with important protection from loss of your income, should you become unable to work because of an accident, illness or injury. The Annuity Premium Benefit (APB) protects ongoing contributions to your retirement plan in the event of your disability.
If, as a newly eligible full-time employee, you choose to enroll in the LTD plan, your coverage begins on the first day of employment or on the date that you complete the on-line enrollment process, whichever is later. While you may enroll in the LTD program at a later date, you will be required to provide a Medical History Statement to Standard Insurance Company and your acceptance will not be guaranteed.
The Annuity Premium Benefit (APB), is an optional coverage that is available with the LTD program. If you become disabled and qualify for long-term disability payments, the Annuity Premium Benefit (APB) would continue contributions to a retirement plan for you. The APB 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-CREF retirement plans. Protecting ongoing contributions to your retirement plan in the event of a disability is important, particularly in the event of a lengthy period of disability.
Providing disability protection is a vital part of your financial planning process. Consider the following information regarding the LTD benefit available to you:
Upon termination of your employment with Penn State, you convert your long-term disability coverage to an individual policy. To do so, you must make the request 31 days following the date of termination and you must have been insured for twelve continuous months under the policy. You should contact the Employee Benefits Division for the appropriate conversion form.
Your LTD premiums are determined by your gross salary and by whether you choose only the long-term disability coverage or whether you elect to include the annuity premium benefit (APB) as well. The rate for long-term disability is $0.249 per $100 of salary. The cost for the annuity premium benefit is $0.116 per $100 of salary. Refer to the formulas below to determine your cost for this coverage:
As a participant in the Long-Term Disability program you are also enrolled in the MEDEX TRAVEL ASSIST Program.
The Pennsylvania State University Office of Human Resources ©2004 All Rights Reserved
