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Long-Term Disability Plan
Your long-term disability benefits are designed to provide continuing income if you become ill or injured, and are unable to work. You become eligible for benefits after you have been Totally Disabled (as defined in the Glossary) for six months. Long-term disability benefits pick up where short-term disability benefits leave off, provided you have at least six months prior service to the beginning date of your Total Disability.
Benefit Amount
If you are an hourly employee, your monthly long-term disability plan benefit equals 60% of your monthly Pay, up to a maximum monthly benefit of $5,000, reduced by income benefits you are eligible to receive from other sources, as described under “Reduction of Benefits.”
If you are a salaried employee, you automatically receive a base benefit of 30% of your monthly Pay, up to $5,000 per month. You may elect to purchase an additional 30% benefit as long as you complete and return the enrollment form to Benefit Plans within 30 days of becoming eligible. The maximum monthly benefit amount, at the 30% or 60% benefit level, is 60% of monthly Pay up to a maximum of $5,000 per month, reduced by income benefits you are eligible to receive from other sources, as described under “Reduction of Benefits.”
The company which administers the long-term disability benefits plan will instruct you on how to apply for Social Security benefits.
“Pay” is defined in the Glossary.
Duration of Benefits
Benefits under the long-term disability plan are payable to you once you have been Totally Disabled (as defined in the Glossary) for six months.
During the first 24 months of long term disability payments, you may be required to undergo periodic evaluations at your site’s Health Services Department in order for the Company to determine whether you are able to return to work. The results of any evaluation will be discussed with you and your physician.
Should you recover from your illness/injury during the first 24 months of long-term disability leave, you may contact the Benefit Plans Office to request a return to work medical evaluation.
The Company does not hold your employment or a job position open for you when you are on long-term disability. The decision on whether you return to work will be based on the results of this medical evaluation and the availability of an open position for which you qualify. If a position is available, the Benefit Plans Office will coordinate a return to work medical evaluation by your site’s Health Services Department.
After you have received long-term disability benefits for 24 months, you must furnish periodic medical evidence of your illness or injury if requested by the Company in order to continue receiving benefits.
You may be eligible for severance pay after receiving long-term disability benefits for 24 months. Severance pay benefits are calculated based on your last day worked. See the "Severance Plan" section for details.
Normally, if you qualify for benefits under the provisions of the plan as stated above, long-term disability benefits are payable until you recover or until you reach age 65, if earlier. However, special provisions apply if you are age 60 or older when you become Totally Disabled. If you become Totally Disabled:
- between ages 60 and 69, benefits are payable for up to five years or until age 70, whichever comes first
- at or after age 69, benefits are payable for up to 12 months.
Reduction of Benefits
Your long-term disability benefits are reduced by other sources of income that are payable to you because of your Total Disability. Income that will reduce your long-term disability benefits includes:
- workers’ compensation benefits or benefits provided under a similar law, state disability benefits and other statutory benefits for disability, retirement, or unemployment
- benefits provided through Company benefit plans, including the pension and business travel accident insurance plans
and - any Social Security benefits for which you are eligible (refer to the Social Security and long-term disability benefits chart that follows).
If any of these benefits are payable as a lump sum, your long-term disability benefit will be calculated as if these benefits are paid monthly. The insurance company has the right to recover advanced Social Security benefits by direct payment or by offset against future long-term disability payments.
Your long-term disability benefits will not be reduced by any private disability coverage that you have purchased.
Determining Your Long-Term Disability Benefit Step 1: Multiply your monthly Pay by 60% (or 30% if salaried and not electing the |
Disability Example |
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Assume you earn $3,000 a month and your benefit level is 60%. Monthly Pay……… |
$3,000 |
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Maximum monthly long-term disability benefit……… |
$1,800 |
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Assume you are eligible for primary Social Security of $800 a month. |
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Maximum monthly long-term disability benefit……… |
$1,800 |
- Primary Social Security……… |
- 800 |
Adjusted monthly long-term disability benefit……… |
$1,000 |
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Assume you are eligible for family Social Security of $500 a month. |
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Adjusted monthly long-term disability benefit……… |
$ 1,000 |
Final monthly long-term disability benefit……… |
$950 |
Social Security and Long-Term Disability Benefits |
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You must apply for Social Security disability benefits as soon as possible. If you have not received a benefit determination from Social Security after you have been receiving long-term disability benefits for 12 months, or if your original claim is denied and you do not file a timely appeal, then your long-term disability benefits will be reduced by your estimated Social Security benefits. |
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If... |
Then... |
You later complete the Social Security appeals process and are denied benefits |
Your long-term benefits will be retroactively reinstated, and you will receive a “catch-up” payment. |
You receive a cost of living increase to your Social Security disability income after your long-term disability benefit has been calculated |
Your long-term benefits will not change. |
Your disability makes you eligible to receive family Social Security benefits |
Your total disability income from all sources may not exceed 75% of your monthly Pay. |
Taking a Job While Disabled
If you return to work at the Company on a reduced-hour basis, you may be eligible to continue receiving up to 50% of your long-term disability benefit level (60% of the total benefit level for hourly or the 30% or 60% benefit level for salaried.
If you participate in a rehabilitative employment program outside the Company that is approved by both the Company and the third-party administrator, you may continue to receive part of your long-term disability income for up to 12 months. Your monthly long-term disability benefits will be reduced by 70% of any money received from your rehabilitative earnings.
For a definition of “Approved Rehabilitative Employment Program,” see the Glossary.
Successive Disabilities
If you receive long-term disability benefits, return to work for less than 520 hours or three calendar months (whichever is longer) and again become disabled due to the same illness or injury, long-term disability income will resume without a six-month waiting period. However, if you have been working for at least 520 hours, or more than three months (if longer), you will need to satisfy the waiting period before benefits begin.
An “Hour of Work” is defined in the Glossary.
Disabilities due to unrelated causes will be treated as separate disabilities requiring satisfaction of separate waiting periods if the disabilities are separated by your return to work for eight consecutive hours.
Exclusions
Long-term disability benefits are not payable for disabilities:
- occurring during the first 12 months that your plan coverage is in effect if caused by any condition for which you received treatment during the three-month period before your plan coverage became effective
- if you are not under the care of a licensed practicing physician
- due to an intentional self-inflicted injury
- resulting from your commission of a felony
or
- due to war, declared or undeclared.
Claiming Long-Term Disability Benefits
Within 90 days after your disability begins, contact your site’s Benefit Plans Office to obtain the forms you must file in order to receive any benefit payable from the plan.
Long-term disability benefits cannot begin until the claim forms have been satisfactorily completed by you and your physician and accepted by the Company and the insurance company. The insurance company and the Benefit Plans Office will assist you in filing your claim.
You are required to apply for Social Security and any other income you may be eligible to receive as a result of your disability. If your initial application for Social Security is denied, you are required to pursue the entire Social Security benefits appeals process through the Social Security Office.
If you fail to complete the appeals process, your long-term disability benefit will be reduced by the estimated Social Security benefit that might have been available.
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Administrative Information |