Definition of Disability
The Reliance Standard Life Insurance Company determines the status of each disability. Because each disability varies, please contact the Benefit Plans Office for additional details.
Elimination Period = the 90 continuous days after the disability starts. The elimination period is a waiting period during which no benefit is paid. On the 91st day of disability, a worker may be eligible to receive benefits.
Amount of Benefit = 66.67% of the worker’s Covered Monthly Earnings.
Covered Monthly Earnings = A worker’s Covered Monthly Earnings is the sum of the following items, if applicable:
- Base salary
- Housing allowance, or value of provided housing
- Utilities allowance
- SECA tax allowance
- Deductions for pre-tax contributions made to a qualified deferred compensation plan, Section 125 plan, or flexible spending account
Maximum Benefit = $10,000/month
Minimum Benefit = 15% of the monthly benefit or $100, whichever is greater.
Maximum Benefit Duration
The maximum duration of LTD benefits generally approximates the Normal Retirement Age for Social Security retirement benefits.
Reductions in Benefit
The benefit amount for a disabled worker may be reduced by the following benefits*:
- Social Security
- Retirement benefits received from an employer-sponsored retirement program
- Workers’ Compensation
- Occupational Disease
- Other group LTD plans maintained by the worker’s sponsoring organization
Please note: There will be no reduction in benefits for benefit amounts that are received from an additional individual LTD plan. A worker may collect a benefit from both an individual LTD plan and the WELS VEBA LTD plan.
Disabled workers who return to work on a part-time basis may be paid a partial disability benefit if approved by Reliance Standard. During the first 24 months of partial disability, the worker may receive up to 100% of pre-disability earnings from the LTD coverage and from his/her part-time earnings. After 24 months of disability, the benefit will be offset by 50% of the earnings received from part-time employment.