Long Term Disability (LTD) Insurance

INTRODUCTION

If you become disabled and cannot work, no benefit is more important to your future financial security than long-term disability (LTD) insurance. In this case, LTD coverage provides important financial protection if your disability meets the definitions provided in the Summary Plan Description. You may choose between two levels of LTD coverage. Your College benefits include sufficient credits to purchase the 60 percent option and you will automatically be enrolled in that option when you first become eligible. You will have the opportunity to change to the 50% option during the annual 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. Your LTD coverage will begin after the completion of one year of benefit-eligible service. This waiting period may be waived if you had similar LTD coverage through a previous employer, and the coverage was in effect within 90 days of your date of hire by Ithaca College.

LTD COVERAGE OPTIONS

50-Percent Long-Term Disability Option	60 Percent Long-Term Disability Option
To protect your income and future financial security in the event of a disabling accident or illness, this option provides 50 percent of your base pay up to a maximum monthly amount after 180 days of total disability.	To protect your income and future financial security in the event of a disabling accident or illness, this option provides 60 percent of your base pay up to a maximum monthly amount after 180 days of total disability.

PAYING FOR LONG-TERM DISABILITY COVERAGE 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: If you are an active participant in the TIAA/CREF basic retirement plan, you receive annuity premium protection in the event you become totally disabled. This protection is not part of Individual Choice, and the premium is paid by the College.

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.