Short Term Disability 8-11-2016 (updated 8-16-2016) Holly Nelson, - - PowerPoint PPT Presentation
New Employee Benefit Short Term Disability 8-11-2016 (updated 8-16-2016) Holly Nelson, Sr. Account Specialist, Standard Insurance Company Becky Goins, Director of Employee Benefits, UAMS Human Resources Brad Loften, Senior Benefits Consultant,
8-11-2016 (updated 8-16-2016)
Holly Nelson, Sr. Account Specialist, Standard Insurance Company Becky Goins, Director of Employee Benefits, UAMS Human Resources Brad Loften, Senior Benefits Consultant, UAMS Human Resources
– Provide a benefit to a larger number of employees than cat leave – Without increasing UAMS cost – And provide a benefit that employees have requested for years
decisions of campus committee
UAMS for at least 2 years
illness
lose anyway when leaving UAMS)
departments since there are no real dollars attached to donations
continue, being phased out
beginning Sept 1 or later
+ Projected to pay benefits to 500 employees per year, 5 x that of cat leave + Faculty are eligible + Will cover illnesses that don’t meet “catastrophic” criteria, including maternity + Makes us more competitive with local hospitals that offer short term disability
each year who use cat leave for spouse/child’s serious illness
Term Disability kicks in
Benefit-eligible employees covered in the group Basic Long Term Disability plan (for which UAMS pays the premium)
9 August 11, 2016
(Hint: It’s you.)
insurance as insurance for a portion of your paycheck
benefit if you’re unable to work because of a qualifying illness or injury
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One in four 20-year-olds will become disabled
Source: Social Security Basic Facts, April 2, 2014 Source: 8/9/16 Short-Term Disability claim data from University of Arkansas Fayetteville Campus.
Top 6 Causes of Short Term Disability Claims
Leading Disablers % of New Claims
1 2 3 4 5 6
Pregnancy 30 Musculoskeletal Condition 18 Circulatory/Heart 9 Back Condition 8 Mental Disorder 5 Reproductive/Urinary 4 & Respiratory (tied)
Average age of a STD Claim at the Fayetteville campus is 44.7 years
11 Company Confidential August 11, 2016
Program
a part-time gradual RTW
Expense Benefit
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60% salary replacement (same as Long Term Disability) when: – Your doctor states you will be unable to work for more than 2 weeks – And after you have exhausted your personal leave and are in LWOP (leave without pay) status (Maternity
exception: per state law, women on maternity leave can begin LWOP without first exhausting all accrued leave)
Long Term Disability Short Term Disability
6 month waiting period 2 week waiting period Paid for duration of disability, up to age 65 Paid for 12 weeks maximum Benefits paid monthly Benefits paid weekly
You pay zero. Max weekly benefit is $519.
How benefit is calculated: $45,000/52 = weekly salary of $863.38 x .60 = $519.23
and up to $216,000 can buy-up additional coverage in a special open enrollment. Raises max weekly benefit to $2,492.
How benefit is calculated: $216,000 - $45,000 = $171,000/52 = weekly salary of $3,288.46 x .60 = additional $1,973.08 max weekly benefit. Added to $519.23 Basic = $2,492.31 total max weekly benefit.
employee is $13.05/mo
have to do anything.
during the special open enrollment period, Aug 1-19. Coverage will take effect Sept 1, 2016.
– Enroll on-line via ESS, Employee Self Service
have annual open enrollment, you run the risk of pre-existing exclusion
back 3 months to see if your condition already existed. This “look back” period means the 90 days before your coverage began.
will be excluded.
employees
Salary under $45,000 Salary over $45,000 No exclusion for pre-existing conditions
Remember, you will automatically be enrolled in Basic STD effective 9-1-2016.
If you enroll in Optional STD effective 9-1-2016, no exclusion for pre-existing conditions But if you wait until later to enroll in Optional STD, pre-existing conditions will be excluded in the first year of coverage
Salary under $45,000 Salary over $45,000 Pre-existing condition exclusion will apply to all new employees, whether enrolled in Basic STD only, or Basic + Optional STD. Again, this only applies during their first year of coverage.
Mary has worked at UAMS since 2012. Her salary is $26,000. She has a baby on Sept 15. She has 3 weeks + 2 days leave time saved up and will off for 6 weeks, Sept 15-Oct 27. She wants to save 2 days sick leave for when she comes back to work.
– Paid leave
– Placed on LWOP in SAP – Receives Basic STD benefit of $300 per week (60% of $26,000)
Mary receives the full 60% STD benefit because she was actively at work on Sept 1 when the Basic STD policy took effect… and because her salary is under $45,000.
Joan has worked at UAMS since 2014. Her salary is $52,000. She finds out she is pregnant in Oct 2016. She waits to enroll in Optional STD during November open enrollment for additional coverage effective Jan 1, 2017. She has a baby on April 5 and will take off a full 12 weeks FMLA (6 weeks of which are medical leave, rest are for bonding with the baby). She has 3 weeks leave time and she wants to use all of it.
– Paid leave
– Placed on LWOP in SAP – Starts to receive Basic STD benefit of $516 per week (60% of $45,000)
If Joan had enrolled in Optional STD in August, so it would be in effect 9-1-2016, her weekly benefit would have increased to $600 (60% of $52,000).
– Not eligible for STD benefits because she is taking off 6 additional weeks to be with baby; she is not disabled any longer. No pay because did not have enough leave to cover FMLA protected absence of 12 weeks.
John was hired in Jan 2016. He makes $80,000. He enrolls in Optional STD by Aug 19, for coverage effective Sept 1. He breaks his leg on Oct 3 while playing soccer and will be out for 12 weeks. He has 1 week leave saved up.
– Paid leave
– Placed on LWOP in SAP. Not eligible for STD yet, 2 week waiting period.
– Receives Basic STD benefit of $519 per week (60% of $45,000) PLUS Optional STD benefit of $404 (60% of salary above $45,000) for a total weekly benefit of $923.
John receives the maximum STD benefit because he was actively at work on Sept 1 and had enrolled in the Optional STD effective Sept 1.
Harvey is hired Sept 1. He makes $170,000. He is in a car accident 2 weeks later and will be on indefinite medical leave, perhaps permanently disabled. He enrolled in Optional STD and Optional LTD on his first day.
– No pay (2-week waiting period and he has no leave). Placed on LWOP in SAP.
– Receives Basic STD benefit of $519 per week (60% of $45,000) PLUS Optional STD benefit of $1,442 (60% of salary above $45,000) for a total weekly benefit of $1,961.
– STD ends, reached 12 weeks maximum benefit
– LTD kicks in, same $1,961 benefit, for as long as he is disabled or reaches age 65
Pre-existing exclusion does not apply to accidents. And STD pays out even if Harvey’s department ends his employment rather than placing him on LWOP.
Susan was also hired on Sept 1, at $70,000 salary. She was in the car with Harvey and will also be on medical leave indefinitely. But she did not enroll in Optional STD or Optional LTD.
– No pay (2-week waiting period and she has no leave). Placed on LWOP in SAP.
– Receives Basic STD benefit for 12 weeks, $519 per week (60% of $45,000).
Her benefit would have been $807 if she had enrolled in Optional STD.
– STD ends. Reached 12 weeks maximum benefit.
– LTD benefit kicks in, but reduced to weekly benefit of $230 because she only had the first $20,000 of her salary covered under the Basic LTD plan.
If Susan had enrolled in Optional LTD, her weekly benefit would have been $807 per week.
that it will be there when needed. 100% salary replacement is always better than 60% under STD or LTD. File a claim as soon as you know you will be out more than 2 weeks – don’t wait until you think disability benefits would begin.
Charge employee’s accrued leave based on their normal work schedule (no change from current policy). When employee runs out of leave, immediately place them on LWOP in SAP.
Contact: UAMS Office of Human Resources/Employee Services (501) 686-5650 AskHR@uams.edu 4th floor Central Building, wing 4C