QDon't I already have disability
insurance as part of the state
retirement system?
AYes and no, depending on how long
you've been a 30-hour or more permanent state employee contributing to the state retirement system.
During your first year of creditable service, you have no coverage under the state plan.
Between one and five years of creditable service, you would receive from the state plan 50 percent of your salary with a maximum payment of $3,000 per month, after a waiting period of 60 calendar days. The payments would last for one year, but the short-term disability period may be extended up to an additional 12 months if the disability is of a temporary nature.
If disabled after five years of creditable service, you would be subject to the same short-term benefit period as noted above. But after that, you would receive 65 percent of your salary from the state plan. The maximum monthly payment would be $3,900. State disability benefits continue until you are eligible for an unreduced retirement benefit. During the first 36 months, payments are reduced by Social Security benefits actually received. After 36 months, payments are offset by the amount of Social Security benefits for which you are eligible, even if you don't receive them.
QWhat does the Liberty Mutual
plan provide?
AIn the first year of creditable service,
following a 90-day waiting period, the Liberty Mutual plan would provide 66 and two-thirds percent of your salary, with a maximum of $10,000 per month. The payments would be reduced by the amount you receive in disability payments from the state plan, Social Security, workers' compensation or employer-sponsored and group benefit plans.
An employee disabled after one year of creditable service would receive from the Liberty Mutual plan, after a 90-day waiting period, payments that would boost salary replacement to 66 and two-thirds percent of the employee's salary. The maximum Liberty Mutual monthly payment would be $10,000.
An employee disabled after five years of creditable service would receive the Liberty Mutual supplement, but it will be smaller than if the employee had been disabled before five years of creditable service. That's because the state disability plan's salary replacement level rises to 65 percent after five years of creditable service following the short-term disability period. But, the Liberty Mutual plan still could help employees who make more than $72,000 a year, the salary level at which the state plan's payments hit their maximum limit. Payments from Liberty Mutual, because they have a maximum monthly limit of $10,000, would provide supplemental salary replacement of salaries up to $180,000.
Any payments under the Liberty Mutual plan would continue until retirement age, provided you cannot return to any work for which you are suited by education, training and experience. Payments are reduced by the amount of benefit payments from some other sources, such as the state disability plan, Social Security, and worker's compensation. Payments are not reduced by payments from the Jefferson-Pilot White Plan.
The Liberty Mutual plan also might benefit some employees as the state plan reduces benefits for estimated Social Security after 36 months on long-term disability, whether or not the employee actually is receiving Social Security. Liberty Mutual payments are reduced only by the amount of actual Social Security payments received.
QWho is eligible to participate in the Liberty Mutual plan?
AAll permanent University employees working 30 or more hours per week and participating in the Teachers' and State Employees' Retirement System. New 30-hour or more employees may enroll within 30 days of the day they became eligible.
QDo I have to answer questionsabout my medical history to get Liberty Mutal coverage?
ANot if you apply during the open enrollment, which ends Oct. 31. Employees who become eligible for the Liberty Mutual coverage in the future will have 30 days after becoming eligible to sign up for the coverage without having to answer medical questions.
QWhen will my coverage begin?
AOn the first day of the month following the first payroll deduction. If you enroll by Aug. 31, your coverage will begin Oct. 1. If you enroll during the month of September, your coverage also will begin Oct. 1, but double premiums will be deducted in October. The Benefits Department is allowed under the terms of the contract to accept enrollments through Oct. 31 with an effective date of coverage of Nov. 1.
QHow do I pay for this coverage?
APremiums will be paid by payroll deduction. If you go on an unpaid leave, you will need to make payments directly to the Benefits Department to continue your coverage.
QHow is disability defined?
AA disability could result from an injury or illness, whether physical or mental.
Liberty Mutual defines disability as "the inability of an employee to perform all of the substantial and material duties of his/her own occupation for the first 36 months of benefits. After 36 months, disability will be based on the inability to perform any occupation for which an employee may be qualified due to education, training or experience."
QIf I partially recover from a disability will I be expected to take any job and will I become ineligible for continued Liberty Mutual benefits?
ANot necessarily. While the purpose of disability benefits is to provide partial salary replacement in the event an employee can't perform his job, he will not be expected to take any position if he is unable to return to his own job. Liberty Mutual wants to help people recover so that they can perform again the duties of their own job or a "reasonable" position. "Reasonable" is based on your training, education and experience and would mean something comparable to what you were doing.
QWhat is creditable service?
ACreditable service is the amount of time you have been making payroll-deducted contributions to the state retirement system. That includes permanent employees scheduled to work at least 30 hours a week. But time spent on unpaid leaves (unless it's a professional leave) or as a part-time employee is not counted toward creditable service.
QAre disabilities resulting from pre-existing conditions covered?
AFor employees who enroll during the open enrollment period and for new employees enrolling within 30 days of beginning 30-hour or more employment, disabilities resulting from pre-existing conditions are covered following 12 months of participation in the plan.
However, if an employee is diagnosed with or treated for a condition within three months prior to his effective date, he will not receive benefits for 12 months if that illness results in a disability, unless he does not receive treatment or medication for that condition for six consecutive months after their effective date.
For example, if an employee is on high blood pressure medication in the three months prior to his effective date, he would not receive benefits for 12 months following the effective date if disabled by a stroke resulting from high blood pressure. However, he would receive benefits if disabled by an accident or an illness unrelated to high blood pressure.
An employee who received treatment for a condition, such as high blood pressure, in the past but no longer is being treated for it, including the three months prior to their effective date, would receive benefits if disabled by a stroke.
To demonstrate the six-month exception, if an employee is treated for a skin cancer in the three months prior to her effective date and goes six consecutive months without further treatment after their effective date, a disability resulting from a recurrence of the cancer would be covered.
Employees with specific questions about their situations should contact Pam Jenkins or George Benfield at Liberty Mutual at 1-800-852-6662.
QWill I have to apply for higher coverage if my salary increases as I do now with the Jefferson-Pilot plans?
ANo. The plan provides for automatic increases in coverage as your salary increases. Your deductions also will be increased automatically once each year.
QIf I leave my University job, may I take this coverage with me?
ANo, the new plan is not currently portable.
QWill my coverage continue if I take an approved leave of absence?
AUnlike the state retirement system's disability plan, you may continue your coverage for up to 24 months during any leave for which you remain on the payroll for at least 1/4 pay, or with less than 1/4 pay if you are actively engaged in education or research, or are pursuing an advanced degree. Coverage also may be continued during an unpaid maternity leave for up to four months following the end of a pregnancy or during an approved family and medical leave. If you are on leave, your monthly income will be based on your rate of pay just prior to the start of your leave. For coverage to continue, you must pay your premium contributions through personal payment while on leave.
QAre benefits paid by the Liberty Mutual plan taxable?
ANo, they are not subject to income taxes, unlike benefits paid by the state plan.
QIf I now have coverage through Jefferson-Pilot's White Plan, would the Liberty Mutual plan benefit me?
AIt depends upon your situation, but employees should take into account that the White Plan is portable, non-cancelable, premiums can't be increased and benefits are not decreased by disability payments from other sources such as the Liberty Mutual plan, the state disability plan and Social Security. If you have a specific question about your White Plan, call Martha or Nancy Dosher, 929-0301.
QIf I am injured on the job, how would worker's compensation payments affect any disability payments I would receive through the state retirement system or the Liberty Mutual plan?
ADisability payments from the state retirement system and Liberty Mutual would be offset by the amount of what you receive from worker's compensation.
QWill I be covered if my disability resulted from an accident that occurred off the job?
AYes.
QAre any types of injuries not covered by the Liberty Mutual plan?
AYes. The plan does not cover disabilities resulting from self-inflicted injuries, an act of war or participation in a riot or in committing an illegal act.
QHow do I get more information?
AYou may call UNC's Benefits Department, 2-3071, or call Liberty Mutual, 1-800-852-6662. For questions about your White Plan coverage, call Martha or Nancy Dosher, 929-0301.
Sources: Benefits Department, Liberty Mutual, Kitty McCollum, Martha Dosher.
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