Paying for Expanded Long-Term Disability Coverage

The amount you pay for Expanded Long-Term Disability (LTD) coverage through after-tax payroll deductions depends on your base salary, your years of service, and the Expanded LTD premium rate.

The cost for Expanded LTD coverage is $7.14 per $1,000 of monthly base salary.

Use the Expanded LTD Monthly Cost Calculator to find your cost.

The maximum covered annual salary under the plan is $424,615. Rates may change annually. As your salary changes, or as the premium rate changes, so does your payroll deduction. Refer to the examples below.

Faculty or Staff Member with Less than Two Years of Service

Examples

Your monthly cost = monthly salary ÷ 1,000 x $7.14

If your monthly salary is:

$2,500 ÷ 1,000 x $7.14 = $17.85 per month
$5,000 ÷ 1,000 x $7.14 = $35.70 per month
$6,250 ÷ 1,000 x $7.14 = $44.62 per month
$8,500 ÷ 1,000 x $7.14 = $60.69 per month

Calculate your monthly cost.

Faculty or Staff Members with Two or More Years of Service

When you have two or more years of service, the university pays for coverage to protect your annual salary up to a limited amount, and you pay for coverage on salary over that amount.

Examples

The salary limit is $69,800, or $5,816.67 monthly.

Your monthly cost = (monthly salary - $5,816.67) ÷ 1,000 x $7.14

If your monthly salary is:

$5,816.67 (or less) = No monthly cost
($6,250 - $5,816.67) ÷ 1,000 x $7.14 = $3.09 per month 
($8,500 - $5,816.67) ÷ 1,000 x $7.14 = $19.16 per month

Calculate your monthly cost.

Payroll Deductions

If there is a cost for your enrollment in the Expanded Long-Term Disability plan, you pay for your share through after-tax payroll deductions.

  • If you are paid biweekly, the deduction is taken from your first and second paycheck of the month. No Expanded LTD deductions will not be taken from the third paycheck.
  • If you are paid monthly, the deduction is taken from each paycheck.

Your deductions begin with your first full month of coverage; there is no deduction for a partial month of coverage.