The Hildreth Agency agency is the servicing agent for the Reliance Standard Group Long Term Disability Plan. This plan is all for eligible employees (regular faculty and staff working 30 hours or more a week) at the University of Tennessee.
What is group long term disability insurance?
Group long term disability insurance protects a percentage of your income should you become disabled and unable to work. The average worker faces a 3 in ten chance of suffering a job loss lasting 90 days or more due to a disability (LIMRA, 2016 Disability Awareness Month).
How much of my income will be protected?
66 2/3% of your income, up to a maximum of $8,000 a month of tax free benefit. There is a Cost of Living Adjustment (COLA) feature on the plan as well. It increases the benefit after disability by 3% annually, for 5 consecutive years.
How much does it cost?
The rate is the same for everyone, but the premium is tied to your income (because your benefit amount is based on your income). To illustrate, an employee making $50,000 annually will pay $6.21 a month for a $2,800 tax free starting monthly benefit. Your premium can be calculated using the formula: Monthly Earnings (capped at $11,999) X .00149= Monthly Premium
If I become disabled, when will my benefits begin?
Benefits begin 120 days after the disability occurs.
What if I can still work in some capacity?
Reliance Standard does offer a partial disability benefit that allows an individual to earn up to 100% of pre-disability income between a combination of earnings paid from your employer and LTD benefit.
What is the definition of disability?
The plan protects you in your own occupation for 36 months; thereafter, the definition becomes any occupation for which you are reasonably suited based on your experience, education, or training.
Are there any limitations on the coverage?
Mental/nervous and substance abuse disorders are subject to a two year limitation. However, dementia and Alzheimer’s are covered for the full benefit period.
What is the benefit period?
The benefit period is to Social Security Normal Retirement Age. For example, if you are 40, your SSNRA is 67, so you will have 27 years of benefit if you remain disabled. If you have coverage and are currently over 61, there is a benefit period table that reduces from 5 years to 1 year. You can maintain coverage as long as you are working regardless of age, and the benefit period will never be less than a year.
What is a pre-existing conditions clause?
A disability due to a pre-existing condition is excluded. A pre-existing condition is an injury or sickness that occurred during the three months prior to your effective date of coverage. After you are covered for a year, no pre-existing clause will apply.
How do I know if I am a current participant in the UT Voluntary Long Term Disability Insurance Program?
You can check your paystub for “LTD INS” or contact the UT System Payroll Office at 865-974-5251.
If I am NOT currently insured, how do I participate?
Eligible, newly hired employees can enroll without medical questions for 31 days from their hire date. Your human resources office will assist you with enrolling. An annual enrollment period is also held every calendar year. During that time, all eligible employees can enroll without medical questions and enrollment is completed online.
If you are not a new hire and you are interested in enrolling outside of an annual enrollment period, please contact your human resources office for more information. Enrollment outside of new hire eligibility or the annual enrollment period requires an evidence of insurability form.
Need More Information?
All plan benefit, claim and contact information, and other forms can be found at https://hr.tennessee.edu/benefits/ltd-forms/.