1413 - Group Long Term Disability Insurance (Historical View)

** Effective: 8/20/2019 10:41:26 AM - 8/20/2019 10:44:47 AM **

Status: Active

Change Notes

Updated the Synopsis section

Category

Benefits and Insurance

Audience List

Synopsis

This policy provides:

Introduction

LTD was implemented in 1988 for active excluded employees. This benefit is intended to provide income protection in the event an employee becomes disabled due to an illness or injury and is unable to work for six months or longer. The California Department of Human Resources (CalHR) Benefits Division maintains responsibility for providing departmental personnel offices with information regarding the LTD program.

The LTD carrier is Standard Insurance Company (The Standard).

Statement

The LTD program offers two income protection benefit options to select from, either 55 percent of the first $18,182 or 65 percent of the first $15,385 of the employee's pre-disability earnings (monthly base salary), reduced by other deductible income benefits.

Eligible current employees may enroll in the Plan during the annual open enrollment period.  Newly hired eligible employees may enroll in the Plan within the first 60 days of employment.

Eligibility Criteria

Employees must be permanent or probationary, excluded from collective bargaining, have a time base of half-time or greater, and have one of the following designations to be eligible to enroll in LTD.

Employees in a limited-term appointment, who otherwise meet the eligibility criteria may enroll in LTD only if they have a mandatory right of return to a position that meets the above criteria.

Not Eligible

Represented (Rank and FIle) and Excluded employees who are appointed to permanent-intermittent positions are not eligible to enroll in LTD.

Administrative Fee

There is an administrative fee of .80 cents per month.

Premium Rates

Monthly premium rates are determined by multiplying the employee’s monthly base salary by the factors indicated below and adding the administrative fee. The maximum monthly base salary is not to exceed $15,385 for the 65 percent plan option and $18,182 for the 55 percent plan option.

Current Premium Rates

Option A – 65% Benefit Option (075-111)

Option B – 55% Benefit Option (075-119)

Enrollment

Refer employees to the CalHR State Employees page, for information on how to enroll: Group Long Term Disability (LTD) Excluded Employees Only

Annual Age Review

Effective January 1, premiums for employees who moved to the next higher premium age group (e.g., from age 39 to 40, 49 to 50, etc.) will increase and will be reflected in the December pay period.

Open Enrollment

Open enrollment for LTD is held annually every April.

During open enrollment, eligible employees may enroll and employees who are currently enrolled may change their coverage option. Employees already enrolled are not required to re-enroll during open enrollment in order to continue their current current coverage.

Employees can cancel coverage any time throughout the year.

Effective Date of Coverage

The employee’s effective date of coverage will begin on the first day of the month, following the first premium deduction.

If the employee submits a form, the form must be mailed to Standard Insurance within the alloted time frame.

*Do not mail the forms to State Controller's Office.

Employee Communications for Open Enrollment

Eligible employees NOT currently enrolled in LTD

In March, CalHR will mail a notice of the upcoming open enrollment to the homes of eligible employees. In late March, a second notification will be mailed that provides more information on how to enroll. In mid-April, a final reminder postcard will be mailed to remind employees that the open enrollment period will end on April 30.

Employees currently enrolled in LTD

In late March, a postcard with information announcing the open enrollment period will be mailed to current enrollees. This will be the only notification for currently enrolled employees.

Completing the LTD Enrollment Authorization Form

Should an employee wish to complete an enrollment form, the employee is required to complete Section A, B, and C of the enrollment form and mail the completed form to Standard Insurance.

Personnel offices should not send the completed form to State Controller's Office, instead, advise the employee on where to mail the form or how to enroll online.

Where to Mail Forms

National Accounts SOC Team

Standard Insurance Company

900 SW Fifth Avenue

Portland, OR 97204-9805

 

Application

Not Applicable.

Authorities

Resources

FAQs

Forms

PML

Web Pages

Authorized By

Desi Rodrigues
Personnel Program Manager II, Benefits Division

Contact Person

Monica Hernandez
Benefits Program Analyst, , Long Term Disability
Phone: 916-324-0533
Fax: 855-238-3276
Email: ltd@calhr.ca.gov

Superseded Policies

Not Applicable.