Human Resources Manual
| Policy No.: | 4-6 | This policy applies to: | |
| Policy Name: | Long Term Disability |  |
Non-exempt staff |
| Effective Date: | 08/01/04 | |
Exempt staff |
| Revised: | |
Faculty | |
Policy
In addition to Sick Leave for short, occasional absences and Extended Sick leave for temporary disabilities, Loyola University New Orleans provides Long Term Disability (LTD) coverage at no out-of-pocket cost to the employee. This insurance coverage provides full-time employees with a measure of financial security if they should become disabled and no longer be able to work.
Procedure
LTD coverage coordinates with other sources of disability income (such as Social Security) to insure a percentage of the employee’s compensation in cases where they are unable to work for more than 90 calendar days. The plan pays a monthly benefit of 60% of the first $16,667 in pre-disability earnings up to a maximum benefit of $10,000.
While there is no guarantee of a position beyond the 12-week FMLA period, the immediate supervisor may recommend to the Vice President of the employee’s division based on legitimate work/staffing considerations that the position be held open for a specified period of time not to exceed 90 days in expectation of the employee returning. The employee will be required to submit a doctor’s written prognosis to Human Resources indicating that he/she is expected to recover within 90 days.
If LTD is approved, he or she will be paid LTD benefits instead of his/her Loyola salary. If LTD is not approved, any unused accrued sick leave would continue to be paid. Extended sick leave benefit will not continue during this period. LTD insurance policy includes a provision to encourage employees to return on a gradual basis as they recover.
If the employee cannot return to work, employment will be terminated. Medical insurance continuation is available through COBRA. More information about the LTD benefit, including choices concerning tax treatment of the coverage is provided in the Loyola University New Orleans Benefits Guide (Adobe PDF) or the Summary Plan Description for Long Term Disability coverage (Adobe PDF).
