Long-term disability insurance

Who is eligible?

The SEBB Program provides basic long-term disability (LTD) insurance to all SEBB-eligible school employees. If you are eligible for SEBB benefits, you will automatically be enrolled in basic LTD insurance coverage, even if you waive SEBB medical coverage.

What is basic (employer-paid) LTD insurance?

LTD insurance helps protect you from the financial risk of lost earnings due to serious injury or illness. When you enroll in LTD coverage, it pays a percentage of your monthly earnings to you if you become disabled.

The SEBB Program's school employee benefits package includes basic LTD insurance at no cost to you if you are eligible for SEBB benefits. It provides:

• Benefit: 60 percent of the first $667 of your predisability earnings (your monthly base pay), reduced by any deductible income.
• Minimum: $50/month
• Maximum: $400/month

Benefits start after 90 days or the period of sick leave (excluding shared leave) for which you are eligible under your employer’s sick leave plan (whichever is longer), and continue during disability up to the maximum benefit period.

The SEB Board expects to revisit LTD coverage in 2019.

What is supplemental (employee-paid) LTD insurance?

If you are eligible for SEBB benefits you can add to your basic coverage by purchasing supplemental LTD for yourself and your dependents. You may need to provide evidence of insurability, depending on what coverage you apply for and when. 

Supplemental LTD provides:

• Benefit: 60 percent of the first $16,667 of your predisability earnings, reduced by any deductible income, and any benefits paid under the basic plan.
• Minimum: $50/month
• Maximum: $10,000/month

This plan includes a cost of living adjustment (COLA) provision. Benefits start after the end of the 90-day waiting period, or the period of sick leave (excluding shared leave) for which you are eligible under your employer’s sick leave plan (whichever is longer), and continue during disability up to the maximum benefit period. The maximum benefit period is based on the age of the enrollee when they become disabled.

The SEB Board expects to revisit LTD coverage in 2019.

How do I enroll?

Detailed enrollment instructions will be provided closer to the open enrollment period, October 1 through November 15, 2019.  

How long do I have to enroll in supplemental LTD?

You may enroll in supplemental (employee-paid) LTD insurance during the SEBB Program’s open enrollment period, October 1 through November 15, 2019, without providing evidence of insurability.

After the SEBB Program’s open enrollment period, you may elect supplemental LTD coverage within 31 days after becoming eligible for SEBB benefits without providing evidence of insurability.

If you apply for supplemental LTD coverage after 31 days, or decrease the waiting period for supplemental LTD coverage, you must provide evidence of insurability and The Standard Insurance Company must approve your request before your insurance becomes effective.

What is the definition of a disability?

A disability means being unable to perform with reasonable continuity the duties of your job as a result of sickness, injury, or pregnancy during the benefit waiting period and the first 24 months for which LTD benefits are payable.

During this period, you are considered partially disabled if you are working but unable to earn more than 80 percent of your indexed predisability earnings. After that, as a result of sickness, injury, or pregnancy, you are considered partially disabled if you are unable to perform with reasonable continuity the duties of any job for which you are reasonably able through education, training, or experience. During this period, you are considered partially disabled if you are working, but unable to earn more than 60 percent of your indexed predisability earnings in that occupation and in all other occupations for which you are reasonably suited.

What is the maximum benefit period?

For both basic LTD and supplemental LTD coverage, the “maximum benefit period” means the benefit duration, which is based on your age when the disability begins.

*SSNRA is Social Security Normal Retirement Age, your normal retirement age under the Federal Social Security Act as amended.