Page 34 - 2020 Benefits Guide

Long Term Disability

The Long-Term Disability (LTD) Plan 12 consecutive months. A pre-existing
is a fully-insured plan offered through condition is a sickness or injury for which
Sun Life. Enrollment in the LTD plan is you, during the three months prior to your
voluntary. The plan is designed to provide coverage effective date, received medical
income protection to you during times of treatment, consultation, care or services;
extended illness or injury over several took prescription medication or had
months or even years, depending on medications prescribed.
your age at the onset of disability. If you
are receiving benefit payments under the The plan imposes a 24-month benefit
STD plan and become eligible for LTD, duration limit for certain illnesses such
your claim will automatically transition to as mental/nervous conditions, chemical
Sun Life’s LTD claims unit. LTD payments dependency, chronic fatigue and
will be paid to you directly by Sun Life, fibromyalgia.
beginning on the 91st day of disability. You
can see more ways to compare LTD and Cost of Coverage
STD on p. 31. The Company shares the cost of LTD
coverage with you. In the event of your
Plan Benefit disability, the portion of the benefit you
Benefits are payable for illness or injury receive under the plan attributable to
after 90 continuous days of disability your share of the cost of coverage is not
with benefit payments to begin on your taxable to you. The portion of your benefit
91st day of disability. The plan will pay payment attributable to the shared cost
60 percent of your base rate of pay in paid by the Company is taxable to you.
effect prior to your date of disability up
to a limit of $10,000 per month. Your Calculate your cost for Long-Term
monthly benefit under the plan will be Disability
offset for other household income, such as Your premium is determined by your
social security or worker’s compensation base rate of pay. These premiums are
earnings. withheld on an after-tax basis. When
using Dayforce enrollment, your cost for
Plan Limitations and Exclusions coverage will automatically populate. The
The plan does not cover disability due formula used to calculate your premium is
to a pre-existing condition until you on the next page.
have been covered under the plan for

Example
Here is the formula to calculate your cost for the LTD coverage:

Your Base Monthly Pay
# of Units
_______________________ / 100 = ____________ x .29 = ________________
Monthly Premium
Per Paycheck
# of Pay Periods*
Then, __________________ x 12 / _________________ = _____________
Monthly Premium
*26 if paid Bi-Weekly or 52 if paid weekly; in 2020, use 53 for weekly pay periods and 27
for bi-weekly pay periods

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