Long Term Disability Insurance - HR Policy 308

Long Term Disability Insurance - HR Policy 308

This policy describes the long-term disability insurance plan available to eligible UAB employees.
Effective Date:
Responsible Party:
None Assigned
Administrative Category:
Applies To:
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Policy 308 – Long Term Disability Insurance

Date Issued: 10/80
Date Revised: 01/09

Long Term Disability Insurance
Eligible employees are covered by a long-term disability insurance plan (salary continuation). This plan assures continuance of a substantial portion of covered employees' salaries should they be deemed disabled by the plan’s insurance provider.

The plan covers a disability resulting from either accident or illness, sustained on or off the job, lasting more than 90 days. Coverage begins with the first day of actual performance of duties for employees in eligible assignment categories. (See Benefits Eligibility chart in “You and UAB Handbook”).

When a covered employee meets the definition of a disability, there is a 90-day waiting period before benefits can be paid, After the waiting period is met, the disabled employee will receive 66 2/3 percent of their monthly salary (not to exceed $10,000 per month) for the first 90 days. The benefit will then be reduced to 60 percent of their monthly salary (not to exceed $10,000 per month). This benefit may be further reduced by other benefits to which the employee may be entitled under (1) Social Security, (2) any state disability law, or (3) any other employer-sponsored plan including any disability or early retirement benefits actually received under the state retirement plan(s).

Assuming the employee continues to meet the definition of disability, coverage can continue, depending on age at commencement of disability, as follows:

Age When Total Disability Starts

Age or Time Limit

61 or younger

to age 65, or 3 years 6 months ,if longer


3 years 6 months


3 years


2 years 6 months


2 years


1 year 9 months


1 year 6 months


1 year 3 months

69 and over

1 year

Employees covered by this insurance are protected 24 hours a day, 365 days a year. The benefit is based on salary at the time of disability.