Long-Term Disability Plan
The Long-Term Disability Plan provides a monthly income to employees who are unable to work due to a physical or mental illness or injury that extends beyond 90 days.
The Long-Term Disability Plan provides income protection for employees and their families in the event of a long-term disability. An employee may apply for long-term disability benefits if unable to work for more than 90 consecutive days while recovering from a physical or mental illness or injury.
The Long-Term Disability Plan was designed with ease of administration for employers and employees. Our partner, Lincoln Financial Group, reviews and makes a determination on all disability applications and handles administrative responsibilities for you, including payments and an ongoing review of benefits to verify continued disability.
Amount of benefits
Generally, the monthly long-term disability benefit equals 70% of the employee’s salary when they become disabled, up to the
IRS maximum.
Disability benefits are reduced by disability payments received from other sources, such as workers’ compensation and Social Security. The minimum monthly benefit the employee will receive from the Long-Term Disability Plan is $50.
Once the long-term disability is approved, payments begin after the employee is disabled for 90 consecutive days, or when any severance payments end, whichever is later.
Eligibility
You may offer the Long-Term Disability Plan to employees regularly scheduled to work at least 20 hours per week who are not in the Death and Disability Plan (which includes a disability benefit for disabilities that extend beyond 90 days).
The Long-Term Disability Plan has a 12-month preexisting condition exclusion. This means, if the employee becomes disabled during the first 12 months that coverage is effective and the disability is due to a condition that was diagnosed or treated (including taking any medication) during the 12 months immediately before coverage started, no long-term disability benefits will be payable.
Cost
For the Long-Term Disability Plan, the cost is $0.35 per $100 of monthly salary. For example, an employee’s monthly long-term disability cost is calculated as follows: [(salary/12) x $0.35]/100, so if the employee's annual salary is $40,000, the cost of the coverage is $11.67 per month, for a total of $140 per year.*
The Long-Term Disability Plan is paid 100% by the employer; the employee may not contribute. Because you as the employer pay the full cost of coverage, any Long-Term Disability Plan benefits received are taxable when paid to the employee.
*Actual cost may be more or less due to rounding.
Offer with Temporary Disability Plan
The Temporary Disability Plan provides income protection for up to 90 days for employees with a short-term mental or physical illness or injury. When offered together with the Long-Term Disability Plan, employees have comprehensive income protection plus a seamless administrative experience if they transition from one plan to the other.
Questions about the Long-Term Disability Plan?
Employers who currently offer benefits through the Board of Pensions can call 800-PRESPLAN (800-773-7752) (TTY: 711) to speak with an Employer Services representative. They can answer questions about benefits and offer support on administering benefits through Benefits Connect.
PC(USA) employers and congregations are encouraged to reach out to their Church Consultant to help determine which dues package is right for their situation, understand available benefits for staff and how to structure them, and guide faithful benefits decision-making.
Interested in offering benefits for the first time?
PC(USA)-affiliated employers who do not currently offer benefits through the Board can contact
our sales consultants. They can help build a benefits experience for organizations so their employees can thrive.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Millions of customers trust Lincoln's retirement, insurance, and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses.