Human Resources
Long Term Disability Insurance
The state of Iowa's long term disability (LTD) insurance plan provides monthly benefits if you have an illness or injury that prevents you from performing your own occupation.
Benefit Guide |
FMLA and Extended Illness, Long Term Disability and Death |
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Members of the General Assembly and part-time employees of the General Assembly, contact your Personnel Assistant for long term disability insurance information. |
| Long term disability insurance coverage is not available for Regents employees. |
Provider
Long term disability (LTD) insurance is provided through a group policy issued to the state of Iowa by The Hartford.
Eligibility
You are eligible for the state's LTD insurance coverage if you are a probationary or permanent employee who works 30 hours or more per week.
Coverage for a new employee is effective the first day of the calendar month following the completion of one month of continuous service in an eligible class.
Coverage is effective as long as you remain in an eligible class as defined in the group policy.
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Enrollment in Long Term Disability Insurance
You are automatically enrolled in LTD insurance coverage.
Cost
The state pays the entire premium for your LTD insurance coverage.
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Disability
A disability is a condition that means you cannot perform the regular duties of your occupation and your monthly earnings are less than 80 percent of your pre-disability earnings. Twelve months after you meet the definition of disability, you must be unable to engage in any gainful occupation for which you are suited by education, training or experience in order to continue to receive disability payments.
Disability determinations are made by Hartford and must be medically supported. Limitations and exclusions (i.e. pre-existing conditions, mental/nervous/substance abuse, etc.) may apply in certain situations.
Elimination Period
You must be disabled through your elimination period. The elimination period is the longer of:
- 90 working days (720 work hours) or
- Until all sick leave is exhausted, whichever comes later.
You may be approved for benefits before the waiting period is up, but you cannot receive LTD payments until the end of your waiting period.
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Insurance Benefits during the Elimination Period
The state's share of your health, dental and basic life insurance premiums continue while you are using sick leave, vacation or you are on paid/unpaid Family Medical and Leave Act (FMLA) leave.
If you have exhausted your sick and vacation leave and are on medical leave without pay, the state share of your health and dental insurance premiums will stop at the end of the month of your last day in paid status. You may either drop your health and dental coverage or you may continue your insurance by making monthly payments for the full premium to your Personnel Assistant. You can continue to make these payments for as long as you remain on approved leave without pay.
Long Term Disability Benefit
If you become disabled, the LTD plan will replace a portion of your pre-disability earnings. The plan’s coverage offers a benefit of up to 60 percent up to $60,000 of your annual base earnings. Base earning is your regular rate of pay and does not include overtime pay or other extra compensation.
Minimum Monthly Benefit$50/month
Maximum Monthly Benefit$3,000/month
Please see the plan book for information about partial disability benefits.
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Benefit Offset
Your monthly LTD benefit may be offset (reduced) by other payments (such as Social Security disability, Workers' Compensation, Veterans Administration benefits, or other state or group disability payments) received as a result of your disability. Your monthly LTD benefit will not be less than $50. Disability or retirement benefits received from the Iowa Public Employees Retirement System (IPERS) are not deducted from your LTD benefit payment.
See the State of Iowa LTD Insurance book for more information about LTD benefit offsets.
Tax Implications
LTD benefit payments are taxable income because the state pays the full cost of the premium.
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Termination of Coverage
LTD benefits continue for as long as you meet the LTD plan’s definition of disability. If you are between 61 to 69 years of age on the date the disability begins, then the maximum benefit duration is 5 years. If you are over age 70 or over on the date the disability begins, then the maximum benefit duration is 12 months.
To File a Claim
If you have a disability, contact your Personnel Assistant.
You should not wait until all of your sick leave time is exhausted before applying for LTD. You should apply for LTD benefits as soon as possible. If you are able to return to work before you satisfy your waiting period, you can cancel or withdraw your application for LTD benefits.
The Hartford strives to make a determination before benefits would start to be payable (assuming approval of the claim). In general, it usually takes Hartford six to eight weeks after an LTD application is received to arrive at a decision. Depending on the specific factors in each case, this timeframe can vary considerably.
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Continuing Your Life Insurance Coverage
If your long term disability payments begin before you reach the age of 60, the basic and supplemental term life insurance that you had as an active employee continues, and your insurance premiums are waived. If you are over the age of 60 when your long term disability benefits begin, you have up to 31 days from the date you cease active work to port your life insurance coverage or convert your life insurance coverage to an individual policy. For information about the difference between porting and converting coverage, or to get premium rates, contact The Hartford at 877-320-0484. If you have not been removed from payroll, supplemental term life insurance premium payments must continue during the qualifying period for LTD.
Continuing Your Health and Dental Insurance Coverage
If you terminate employment upon approval for LTD, in lieu of COBRA coverage, you are allowed to continue your coverage with the state group for as long as you remain disabled according to the plan definition of disability. The state’s share of the monthly premium will cease at the end of the month in which your employment terminates. LTD coverage will begin the first of the month following termination and you will pay the full monthly premium for any insurance coverage you choose to keep.
You may drop your state group plan completely. However, there is currently no provision for rejoining the group at a later date.
If you continue your insurance coverage with the state of Iowa group, you will be able to participate in the annual enrollment and change period, which will allow you to change your health plan every year. You can continue your group health and group dental coverage separately or together. You do not have to elect to continue in both plans. Your benefits as a member of the group are identical to benefits for the plan you held as an active employee.
If the Hartford determines that you are no longer eligible for LTD benefits and you are not drawing a retirement benefit, health and dental benefits will stop.
You can continue your coverage with the state if you become eligible for Medicare. Refer to the Health Insurance for Medicare-Eligible Retirees Web site for additional information.
See your Personnel Assistant for specifics and the required paperwork at the time of termination of employment.
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Things to Consider
Depending on your financial needs, you may want to purchase additional long term disability insurance to supplement that which is provided by the state. You may want to discuss this with your insurance agent or financial planner. If you're considering buying additional insurance, here are a few factors to consider. Don't forget to include:
- Mortgage, debts, food, clothes, and utility bills (what portion of these are paid from your salary)
- Housekeeping bills
- Savings for children's education
For More Information
For more information about your coverage, please see your State of Iowa LTD Insurance book or contact your Personnel Assistant.
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Site updated 09/11/2009