Columbia’s Salary Continuation Plan and Long-Term Disability (LTD) Insurance Plan can replace all or some of your income if you become ill or injured and cannot work. You are automatically covered under the Salary Continuation Plan and the Basic LTD Insurance Plan at no cost to you. You may elect to buy additional coverage under the Optional LTD Plan, and the University recommends you seriously consider this valuable coverage. The LTD plans are insured and administered by Cigna.
As a new hire, take advantage of the one-time opportunity to enroll in Optional LTD without providing Evidence of Insurability.
|Disability Option||Coverage||Your Costs of Coverage|
|Salary Continuation Plan* For first six months||Full-time Officers receive 100% of regular compensation for up to six months of disability during any rolling 12-month period. To receive disability benefits, you must be able to provide proof of your disability and must be under a physician’s care consistent with your medical condition.||$0|
|Basic Long-Term Disability After six months||Basic LTD begins after you have been disabled for 6 months. You must apply to receive long-term disability benefits For the first 6 months of LTD, your benefit payment is 66²⁄³% of your Annual Benefits Salary** and it is reduced to 60% thereafter. ||$0|
|Optional Long-Term Disability After six months||The same benefit provisions as for the Basic LTD apply, with the following enhancements:||$0.216 per $100 of your monthly covered Annual Benefits Salary.**|
* Faculty should review their appointment letters for specific information relative to salary continuation payments.
** Annual Benefits Salary is calculated as of July 1 each year and is the greater of (a) your base salary or (b) your prior 12 months’ compensation from the University as of June 30 each year, including certain approved additional and private practice compensation, and excluding any housing allowance.
*** As defined by Cigna, the long-term disability provider.
The LTD benefits are reduced by other disability income you receive, such as Social Security or Workers’ Compensation.
Any payments made to your dependents because of your disability will also reduce your LTD benefit amount. Here’s an example of how Basic LTD benefit payments are calculated:
After your first 6 months on Basic LTD benefits, the percentage reimbursement of your Annual Benefits Salary is reduced to 60%:
Basic LTD Covered Earnings $60,000
Basic LTD % of Salary Benefit 60% x 0.60
Your Basic LTD Benefit = $36,000 annually or $3,000 per month
The Basic LTD benefit payment is fully taxable because Columbia pays the premium.
LTD Insurance Maximum Benefit
Period If you remain disabled (as defined by Cigna), you will continue to receive LTD benefits for a maximum benefit period based on your age on the date you become disabled Benefits continue as long as you remain totally disabled throughout the Maximum Benefit Period as defined by Cigna. These benefits are taxable.
|Maximum Benefit Period|
|Age on Date of Disability||Maximum Benefit Period|
for Basic and Optional LTD
|Less than 60||To age 65|
Optional LTD Insurance Plan
Statistically, your chance of becoming disabled is greater than your chance of dying during most of your working years. Please consider electing Optional LTD coverage to provide additional income protection in the event of disability. The Optional LTD Plan pays 66²⁄³% of the first $300,000 of your Annual Benefits Salary for the first six months, and 60% thereafter, up to $15,000 per month. There are important benefits from Optional LTD, including:
- An annual 3% cost-of-living increase in the disability benefits payment.
- Contributions to the Officers’ Retirement Plan commence when you become permanently and totally disabled and unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment, which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
- The Officers’ Retirement Plan contributions may increase based on a 3% annual cost-of-living adjustment.
You can elect Optional LTD when you are hired or during annual Benefits Open Enrollment. You pay for this coverage with after-tax dollars, so your Optional LTD benefits are only partially taxable if you become disabled.
If you did not select Optional LTD coverage when you first became eligible, you’ll need to be approved for coverage by Cigna after submitting Evidence of Insurability. Your coverage, as well as your payroll contributions, will not begin until Cigna has approved your application.