Long Term Disability FAQs: Human Resources

Long Term Disability FAQs

Faculty FAQs

Can I elect to have more Long Term Disability (LTD) coverage than the University provides?

Yes, if you already have LTD coverage through Northwestern, you will continue to have the same level of coverage (60 percent of base salary), up to a maximum monthly benefit of $13,800. You will pay for the additional 10 percent ‘Buy Up’ coverage through payroll deduction. [Prior to September 1, 2012, faculty enrolled in LTD were required to pay one-half of the cost of LTD coverage. Going forward, faculty will only pay for the additional 10 percent ‘Buy Up’ amount of coverage.]

Faculty members who were not enrolled in LTD coverage prior to September 1, 2012, will be automatically enrolled in LTD coverage of 50 percent of base salary, up to the maximum specified above. The ‘Buy Up’ option to 60 percent of base salary, subject to the maximum specified above, may also be elected.

Does this change in LTD coverage impact how time off for medical reasons is handled during the six-month period prior to when long term disability benefits begin?

If you are unable to perform your work due to medical reasons, you should work with the appropriate administrators in your school/unit and the Office of the Provost to discuss your need for a medical leave of absence. There is a six-month (26 week) elimination period before LTD benefits begin. If approved, you would continue to receive your base salary during the six-month period prior to the commencement of LTD benefit payments.

When does LTD coverage start for newly hired faculty members?

The effective date for LTD coverage is the first day of the month after the date of hire. If the hire date is the first of the month, then coverage for LTD begins that same date.

How long can a faculty member receive LTD benefits?

After a six-month (26 week) elimination period, the LTD plan will pay a monthly benefit as long as you remain disabled up to a maximum age based on your Social Security Normal Retirement Age.

How long may I remain in health and welfare benefits while on LTD?

Those receiving LTD benefits may continue health, dental, vision, and life insurance benefits for 18 months provided they pay premiums via direct bill. Between the Extended Sick Time and LTD benefits, employee may remain in these plans for a total of 24 months.

Staff FAQs

What is considered a disability?

A disability means you are unable to perform one or more of the essential duties of your occupation.

What are the main components of Northwestern’s disability program?

The University provides a comprehensive disability program for eligible employees:
- Disabilities lasting 26 weeks or less are covered under the Extended Sick Time plan.
- Disabilities that are longer than 26 weeks are covered under the Long Term Disability plan.
These disability plans help protect your paycheck if you become disabled and can’t work.

Who’s eligible for Long Term Disability?

All active, benefits-eligible, full-time and part-time faculty and staff.

When does my coverage start?

The effective date for LTD coverage is the first day of the month after the date of hire. If the hire date is the first of the month, then coverage for LTD begins that same date.

How long can I receive benefits?

After a 26-week elimination period, the LTD plan will pay a monthly benefit as long as you remain disabled under the plan up to a maximum age based on your Social Security Normal Retirement Age.

How much coverage do I have?

The University provides LTD coverage that pays a benefit of 50 percent of your base wages / salary up to a maximum monthly benefit of $11,500. You may purchase through payroll deduction Buy-Up LTD coverage that pays a benefit of 60 percent of your base wages / salary to a maximum monthly benefit of $13,800.

Are staff members required to contribute toward the cost of LTD insurance?

Staff will not be required to contribute toward LTD coverage at the 50 percent level. If the Buy-Up option is elected for coverage at 60 percent, then an employee contribution toward the cost of the additional coverage is required and will be taken through payroll deduction.

Do I need to enroll?

All eligible employees are automatically covered under the LTD Plan at the 50 percent benefit level.
If you are newly eligible for the LTD plan, you will automatically be enrolled in it.

What can I expect if I am on LTD?

Extended Sick Time claims will transition to LTD with limited additional information required from you.
You can expect to hear from a Hartford Ability Analyst who will conduct a claimant interview, explain the LTD process and answer your questions.
If approved, LTD benefit payments are issued by The Hartford on a monthly basis. (You may set up direct deposit for LTD payments.)
You may check your claim or payment status online at the address above or via the telephone claim inquiry system.

Am I excluded from participating in LTD if I have a pre-existing condition?

If you are diagnosed or receive care for a condition in the 26-week period before your effective date of LTD coverage, a disability resulting from that condition will not be covered by the LTD plan until you have been insured on the LTD plan for 12 months.

Are LTD benefits taxable?

The LTD 50 percent benefit is taxed. If you elect the Buy-Up option with its 60 percent benefit, a portion of the benefit payments will not be taxed.

Is there an elimination period before LTD benefits are payable?

Yes, the elimination period is 180 days or the expiration of any employer-sponsored extended sick time, whichever is longer. You will continue to receive LTD benefit payments as long as you remain disabled, or until you reach the Social Security normal retirement age, whichever comes first.