Benefits

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.

Benefits

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

*Note that other sources of income may also reduce the benefit payable from the LTD plan.

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.

Partial Disability

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.