Individual Choice

Long-Term DisabilityLong-Term Disability

INTRODUCTION

No benefit may be more important to protect your income and future financial security if you cannot work due to a disabling accident or illness than long-term disability (LTD) insurance. You are eligible to enroll in the LTD plan after the completion of one year of benefit eligible service. Coverage will be effective on the first of the month following one year of benefit eligible service. The waiting period may be waived if you had similar coverage through a previous employer, and the coverage was in effect within 90 days of your date of hire by Ithaca College.

You may choose between two levels of LTD coverage as described below. Ithaca College benefit credits include an amount sufficient to purchase the 60 percent option. Once eligible, you will automatically be enrolled in the 60 percent option. You will have the opportunity to change to the 50% option during the subsequent re-enrollment period or if you experience a qualifying life status change.

Long-term disability benefits are coordinated with any disability income you may be entitled to receive from other sources, such as Social Security. If you remain totally disabled, LTD benefits normally continue until you reach age 65, unless you become disabled after age 60. Please refer to the Summary Plan Document for more information.

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LTD COVERAGE OPTIONS

50-Percent Option

60 Percent Option

This option provides 50 percent of your base pay up to a maximum monthly amount after 180 days of total disability.

This option provides 60 percent of your base pay up to a maximum monthly amount after 180 days of total disability.

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PAYING FOR LTD WITH AFTER-TAX DOLLARS

According to current IRS regulations, if you pay for LTD coverage with after-tax dollars, your disability income from the plan is not taxable. Therefore, the cost of your LTD option is deducted from your pay on an after-tax basis.

Note: You may be eligible for annuity premium protection if you are an active participant in the TIAA/CREF basic retirement plan at the time you become disabled. This protection is not part of Individual Choice, and the premium is paid by the College.

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SELECTING LONG-TERM DISABILITY COVERAGE

As you consider your LTD insurance options, consider these factors:

  • If your salary changes during the plan year, the amount of your LTD benefit will also change.
  • Would you have adequate pay replacement protection from other sources (such as your spouse's or partner's income, Social Security, and your retirement plan) if you became disabled and could not work for a period of time?

  • The maximum benefit under the 60% option is higher than under the 50% option.