Page 38 - 2021 Team Member Benefit Guide - English

Long Term Disability

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

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
Monthly Premium
# of Pay Periods*
Then, __________________ x 12 / _________________ = _____________
*26 if paid Bi-Weekly or 52 if paid weekly

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