To provide guidance to University units regarding an employee's Long-term disability (LTD) status, eligibility, departmental staffing, and cost considerations.

Employees are required to have LTD coverage no later than the date they are required to participate in CRP or ERIP, as applicable, subject to any applicable collective bargaining-unit agreements. Long-term disability benefits are not available until three months after the onset of disability. Therefore, between the onset of disability and the determination of whether the application for LTD is approved or denied, a disabled employee must use accrued sick and vacation time, short-term disability (STD) [see U513 Short-Term Disability], and if necessary, go on an unpaid personal leave of absence to bridge benefits until the insurance company approves or denies the application.

The University treats an employee who is receiving long-term disability income payments from the insurance company as an active employee for benefit plan purposes, as set forth below.

1. The Long-Term Disability Summary Plan Description (SPD) sets forth detailed information about the University’s LTD program, including rules about eligibility and enrollment, benefit options, limitations on benefits, and specific coverage. Copies of the SPD are available online at http://hr.uchicago.edu/benefits/spds/ltd/ or at the Benefits Counseling Office.
2. The University requires all benefits-eligible employees have LTD coverage no later than the date they are required to participate in CRP or ERIP, as applicable, subject to any applicable collective bargaining-unit agreement. An employee may waive LTD coverage if he/she continues to work past age 65.
3. An employee not actively at work and receiving LTD disability income payments is placed on inactive employment status, although he/she is treated as an active employee only for benefit plan purposes as follows:
   1. Medical and Dental. Coverage for medical and dental insurance that is in effect immediately before the LTD effective date may be continued as long as the employee is on LTD. The LTD employee will be billed directly for his/her share of the premium for continued benefit coverage. If premium rates change, the new rate must be paid.
      
      During the annual Open Enrollment period, an LTD employee may change medical or dental plans and/or add or drop dependents.
   2. Life Insurance. Life insurance coverage may be continued by payment of the applicable premium unless subject to any waiver of premium provision in the insurance contract. While on LTD, coverage may be not increased, but may be decreased at any time.
   3. Personal Accident Insurance. Coverage under this insurance plan may be continued by payment of the applicable premium. While on LTD, coverage may be not increased, but may be decreased at any time.
   4. Participation in CRP or ERIP continues while on LTD. If the LTD employee was a participant in CRP or ERIP at the time of disability and began receiving benefits under the LTD plan, the University will fund such employee’s required contribution as well as continue to fund the required University contribution. The University will continue to fund the defined benefit portion of ERIP.
   5. Education Assistance Benefits. An LTD employee remains eligible for all education benefits to which he/she was entitled at the onset of disability.
   6. Flexible Spending Accounts and the Supplemental Retirement Program. An LTD employee cannot make pre-tax contributions to a Flexible Spending Account (FSA) or to a Supplemental Retirement Program (SRP) because he/she receives no salary while on LTD.
4. If an LTD employee becomes gainfully employed in another position outside the University, the employee is obligated to immediately notify the University. The LTD employee’s inactive employment status will be terminated and the LTD employee will no longer be eligible to continue any University benefit, except as required by applicable law.
5. Since an LTD employee does not receive a paycheck while on LTD, he/she will be billed directly for coverage of any health, dental, life or personal accident insurance. An LTD employee does not pay a premium for LTD coverage once he/she is receiving benefits under the LTD plan. Failure to pay premiums on time (within 60 days) will result in termination of benefits coverage.
6. A department may post the LTD employee’s job once the employee has been approved for long-term disability benefits, subject to any longer period of time required, pursuant to an applicable collective bargaining agreement.
7. Reinstatement into active work status after having been placed on inactive status is at the discretion of the University and is subject to applicable law. Reinstatement in active work status is only available within 180 days of the onset of continuous disability, subject to applicable law.
8. An employee who has been released to return to active work status after a period of disability may apply for University positions for which he/she believes himself/herself qualified. The University may require a fitness for duty evaluation at its expense.
   
   

U513 Short-Term Disability, Contributory Retirement Plan, and Retirement Income Plan for Employees.