Expanded Long-Term Disability Eligibility, Enrollment, and Coverage

Eligibility

You are eligible to enroll in the Expanded Long-Term Disability Plan if you are a:

  • Faculty member (except Supplemental)
  • Staff member
  • Member of IUOE, LEO Lecturer II-IV, LEO-GLAM, MNA, POAM, UPAMM and Trades
  • LEO Lecturer I with at least a 50 percent appointment and two years of service

When You May Enroll

You are eligible to enroll in Expanded Long-Term Disability coverage immediately upon your date of hire without having to submit a Statement of Good Health for evidence of insurability by the Claims Administrator if:

  • You hold at least a 50 percent appointment (20 hours per week or more),
  • Your appointment is expected to last eight months or more, and
  • You enroll in coverage within 30 days of your newly eligible appointment

If you wait to enroll in coverage, you will be required to submit an Expanded Long-Term Disability Application with Health Statement. Your Statement of Good Health must then be reviewed and approved for evidence of insurability by the Claims Administrator before coverage takes effect. To apply for coverage under the Expanded Long-Term Disability Plan, complete and submit the Expanded Long-Term Disability Application with Health Statement. 

If you have less than a 50 percent appointment (19 hours per week or less), you are eligible to enroll after three years of service.

Two Levels of Expanded Long-Term Disability Coverage

There are two levels of Expanded LTD coverage, maximum Long-Term Disability and capped Long-Term Disability. They each provide different LTD income benefit amounts and different retirement savings plan contribution amounts.

Maximum Expanded Long-Term Disability Coverage

Maximum Expanded Long-Term Disability protects your full pre-disability base salary. You may enroll in the maximum Expanded LTD plan as soon as you are eligible. When you have maximum Expanded LTD coverage, if you become totally disabled and the Claims Administrator approves your claim for LTD benefits, you may receive an income replacement benefit of up to 65 percent of your full pre-disability base salary up to a maximum covered salary of $424,615. If you are enrolled in the Basic Retirement Savings Plan, you may also receive a retirement savings contribution of up to 15 percent of your full pre-disability salary.

Capped Expanded Long-Term Disability Coverage

The capped level of Expanded Long-Term Disability coverage protects annual salary up to a limited amount as determined by the university each year. The salary limit is $74,500 for 2025. You may enroll in capped Expanded Long-Term Disability after two years of service. Under the capped Expanded Long-Term Disability plan, if you become totally disabled and the Claims Administrator approves your claim for LTD benefits, you may receive the following:

  • An income replacement benefit of up to 65 percent of the limited annual salary amount as determined by the university: 
    • For 2025, that is 65 percent of $74,500, for an annual income replacement benefit of $48,425
  • A U-M retirement savings plan contribution of up to 15 percent of the limited annual salary amount as determined by the university:
    • For 2025, that is up to 15 percent of $74,500 for an annual retirement savings plan contribution of up to $11,175

50 Percent or Greater Appointment

Less than Two Years of Service

Maximum Coverage

If you have a 50 percent or greater appointment (20 hours per week or more), enrollment in maximum Expanded Long-Term Disability coverage during the first two years is optional, at your expense, and based on your entire salary. If you do not enroll in maximum coverage, you will not have any disability insurance protection until your two-year service anniversary, or longer if you are on medical leave, child care leave, personal leave, other unpaid leave, or if you are using extended sick time pay on your two-year anniversary. Enroll on Wolverine Access within 30 days of becoming eligible, or as specified by your bargaining agreement. If you wait past 30 days to enroll, you must complete and submit the Expanded Long-Term Disability Application with Health Statement to apply for enrollment in the plan.  Your application and Statement of Good Health must be approved by the Claims Administrator before coverage takes effect. If your appointment drops below 50 percent during your first three years of service, you will be ineligible. You will become eligible again when your appointment reaches 50 percent and is expected to last eight continuous months or longer.

Capped Coverage

Capped Expanded Long-Term Disability coverage is not available before two years of service.

Two or More Years of Service

Maximum Coverage

If you are actively at work and did not enroll in maximum Expanded Long-Term Disability coverage during the first two years of your eligible appointment, and you are actively at work on your two-year service anniversary, complete and submit the Expanded Long-Term Disability application within 30 days of your two-year service anniversary to enroll.

If you wait past 30 days to enroll, you must complete and submit the Expanded Long-Term Disability Application with Health Statement to apply for enrollment in the plan. Your application and Statement of Good Health must be approved by the Claims Administrator before coverage takes effect.

Capped Coverage

If you are not already enrolled in maximum Expanded Long-Term Disability coverage, you will be automatically enrolled in capped Expanded Long-Term Disability coverage effective on the date of your two-year service anniversary in a benefit-eligible position as long as you are actively at work.

Change in Appointment

If your appointment drops below 50 percent after you have completed three years of service, you will continue to participate in the Expanded Long-Term Disability Plan if your appointment is expected to last eight continuous months or longer.

Less Than 50 percent Appointment

Less Than Three Years of Service

If your appointment is less than 50 percent (19 hours per week or less), you are not eligible to enroll in maximum or capped Expanded Long-Term Disability coverage until three years of service.

Three or More Years of Service

Maximum Coverage

If you are actively at work, complete and submit the Expanded Long-Term Disability application within 30 days of your three-year service anniversary to enroll in maximum Expanded Long-Term Disability coverage.

If you wait past 30 days to enroll, you must complete and submit the Expanded Long-Term Disability Application with Health Statement to apply for enrollment in the plan. Your application and Statement of Good Health must be approved by the Claims Administrator before coverage takes effect.

Capped Coverage

If you do not enroll in maximum Expanded Long-Term Disability coverage, you will be automatically enrolled in capped Expanded Long-Term Disability coverage effective on the date of your three-year service anniversary in a benefit-eligible position as long as you are actively at work.

When Expanded Long-Term Disability Coverage Begins

Your coverage under the Expanded LTD plan takes effect:

  • the effective date of an eligible appointment if your application is received by the Benefits Office within 30 days of the effective date, or
  • the date you are automatically enrolled, or
  • the date your Statement of Good Health is approved.

In all cases, you must be actively at work before Long-Term Disability coverage can take effect.

When Expanded Long-Term Disability Coverage Ends

Your coverage under the Expanded Long-Term Disability plan ends on the date:

  • Your appointment or leave status makes you ineligible for enrollment in this benefit coverage;
  • Your employment terminates; or
  • Your job family is no longer eligible for enrollment in Expanded Long-Term Disability coverage

If coverage ends after the first day of the month, your deductions will not be refunded for that month.

Withdrawing from Expanded Long-Term Disability Coverage

You may withdraw from maximum Expanded Long-Term Disability coverage at any time by completing and submitting a Notice of Withdrawal form. 

Before Two Years of Service

If you withdraw from Expanded Long-Term Disability coverage and have less than two years of service, you will no longer have LTD insurance protection for income replacement and benefits continuation, which includes medical plan and prescription drug coverage and contributions to the Basic Retirement Savings Plan.

With Two or More Years of Service

If you withdraw from maximum Expanded Long-Term Disability coverage and have at least two years of service, you will remain enrolled in capped Expanded Long-Term Disability coverage. However, your LTD insurance protection will be reduced for both income replacement and Basic Retirement Savings Plan contributions.

​After Age 62

You may wish to evaluate your continued enrollment in maximum Expanded Long-Term Disability coverage after you reach age 62 because of the limited benefit duration period that begins at age 62. Some factors to consider include how long you plan to continue working and/or the balance available in your extended sick time pay.

If your LTD benefits begin prior to reaching age 62, the Expanded LTD plan will provide benefits until you reach age 65, as long as you continue to qualify under the definition of total and permanent disability. If you are age 62 or older when your LTD benefits begin, they will continue for a limited duration according to your age when disability begins.

If LTD benefits begin:

  • before age 62, LTD benefits last up to age 65.
  • after age 62 but before age 63, LTD benefits last up to 42 months.
  • after age 63 but before age 64, LTD benefits last up to 36 months.
  • after age 64 but before age 65, LTD benefits last up to 30 months.
  • after age 65 but before age 66, LTD benefits last up to 24 months.
  • after age 66 but before age 67, LTD benefits last up to 21 months.
  • after age 67 but before age 68, LTD benefits last up to 18 months.
  • after age 68 but before age 69, LTD benefits last up to 15 months.
  • on or after age 69, LTD benefits last up to 12 months.

Upon reaching the maximum LTD benefit duration date and being medically unable to return to work, your LTD benefits will end. Most individuals will move to retirement following an LTD leave.  

For those who do not meet the university’s retirement eligibility requirements, as defined under the Standard Practice Guide (SPG) Section 201.83, employment with the University of Michigan will end. In this scenario, you will be offered benefit continuation for all eligible plans under the Consolidated Omnibus Budget Reconciliation Act, otherwise known as COBRA. Information about COBRA can be viewed at hr.umich.edu/benefits-wellness/benefits-enrollment/changing-your-benefits/life-events/cobra.  

Faculty have an alternative option and may elect an unpaid medical leave of absence for up to one year when LTD benefits end and you are medically unable to return to work. The Benefits Office will contact you and your department 4-6 months before your LTD ending date to facilitate a conversation regarding the unpaid leave option. The unpaid medical leave of absence will be without compensation, and you may not have full access to your retirement funds. Benefit continuation is optional and at your expense. You will be responsible for paying 100% of the benefit premiums for any plans in which you choose to continue enrollment. 

For individuals who are medically able to return to work and no longer meet the definition of disability as defined under the LTD Plan, the LTD Claims Administrator, Sedgwick, may deny the LTD claim. If your claim is denied before you reach your maximum LTD benefit duration, job search assistance will be offered. Participation with job search assistance is voluntary and you are not required to return to work. If you choose not to accept these services, your LTD  benefits will end immediately. In cases when job search assistance is accepted, LTD benefits will continue for up to 90 days unless a job offer is received sooner. In all return-to-work cases, the Benefits Office will work with you, human resources representatives and other key university stakeholders to ensure the consideration of all applicable university policies, procedures and bargaining agreements.

Download and view Expanded Long-Term Disability forms and documents.