- Open Enrollment
During each NazFlex annual open enrollment period, you will have an opportunity to decrease or increase your long term disability option effective January 1 of the following year. It is important to note, however, that a request to increase your LTD level of coverage will be subject to Evidence of Insurability requirements.
To allow you to protect you and your family from severe financial loss in the event of extended illness or injury of six months or longer, NazFlex offers you Long Term Disability (LTD) coverage options after one year of full-time service. You will be notified of your options by the Human Resources Department when you become eligible.
What Are My LTD Options?
Nazareth College offers you two LTD options (both require one year of full-time service):
Basic LTD Benefit:
- 50% of your salary to a maximum of $6,000 a month.
- This benefit is automatic and fully paid for by the College.
- Has a maximum benefit of $6,000 a month (protects base pay of up to $144,000 a year or $12,000 a month at 50%)
- Has a minimum benefit of $100 a month or 10% of gross income, whichever is greater.
Supplemental LTD Benefit
- 70% of your salary to a maximum of $6,000 a month.
- Your cost for this additional coverage is shown on your NazFlex Enrollment Form.
- Has a maximum benefit of $6,000 a month (protects base pay of about $102,857 a year or $8,571 a month at 70%)
- Has a minimum benefit of $100 a month or 10% of gross pay, whichever is greater.
What Is the Cost?
The premium rates for optional LTD are based on the annual premium for the coverage option you elect and your base pay just prior to the enrollment period.
If your base pay changes during the enrollment period or during the NazFlex plan year, your LTD benefit and premium will not change. Benefits and premiums change on January 1 only.
How LTD Coverage Works
You must be disabled from your own occupation for a period of 180 days before LTD benefits can begin.
All LTD benefits are offset by other payments you and/or your dependents are eligible to receive for the same disability from other sources, such as Workers' Compensation, Social Security or Retirement Plan benefits.
Generally, LTD benefits will be paid while you remain totally or partially disabled from any occupation for which you are reasonably suited by training, education, or experience. Certain policy restrictions apply.
LTD benefits will continue until you:
- Fail to furnish proof of your disability
- Become rehabilitated
- Reach age 65 (or, if you become disabled after age 60, for a specified amount of time indicated in the policy)
Choosing an LTD Option
Here are some planning considerations which may help you decide which LTD option is most appropriate for you and your family.
- You should consider other sources of income that you and your family may have. Remember, certain sources of income, like Workers' Compensation, Social Security and Retirement Plan benefits, reduce your monthly LTD benefits. Other sources, like dependent income, personal savings and investments, are in addition to your monthly LTD benefits.
- When you receive LTD coverage for the first time, some restrictions will apply. You will not receive a benefit for any disability caused by a pre-existing condition (defined below) during the first 12 months your NazFlex LTD is in effect. If you increase your coverage and you become disabled due to a pre-existing condition during the first 12 months of the change, your benefit will be covered at the lower percent level.
- If you are increasing your NazFlex LTD coverage level, you will receive benefits based on your pre-NazFlex LTD coverage if you become disabled due to a pre-existing condition (defined below) during the first 12 months your NazFlex LTD is in effect.
- You may reduce your LTD option from 70% of pay to 50% of pay at future NazFlex open enrollments. If, however, you wish to add an LTD option or increase your LTD option from 50% of pay to 70% of pay at a future NazFlex open enrollment, the additional benefit will not be available for any disability caused by a pre-existing condition (as defined below) until the additional optional LTD coverage has been in effect for 12 months.
- A pre-existing condition is defined as a sickness or injury for which you received medical treatment, consultation, care or services (including diagnostic measures), or had taken prescribed drugs or medicines in the three months prior to the effective date of your NazFlex LTD coverage.
- If faculty or staff member elects to enroll in the Supplemental LTD benefit after his or her initial enrollment opportunity, they must provide Evidence of Insurability.
Providing evidence of insurability consists of completing a statement of medical health form and may also include your having a physical examination at your expense if it is requested by the insurance carrier. The insurance carrier will decide whether or not to approve your Supplemental LTD insurance after examining the Evidence of Insurability you provide.
Making Your LTD Election
Please note that your optional LTD election is binding for the entire plan year, which is January 1 to December 31. If, however, you have a qualified "change in family status", you may change your LTD election, and other NazFlex elections, in a manner consistent with the family status change that occurred.