514 - Long-Term Disability | The University of Chicago

514 - Long-Term Disability

Subject: Long-Term Disability

Section: U514

Date: January 1, 2024

Purpose:

To provide guidance regarding the impact of Long-Term Disability (LTD) on employment status.

Who is governed by this policy:

This policy applies to all benefits eligible staff employees who elect LTD coverage.

BACKGROUND:

LTD benefits come in the form of insurance coverage that provides income replacement to qualified individuals in the event of Long-Term Disability. It is not a leave of absence nor does it provide job protection. Information about the University’s LTD program, including rules about eligibility and enrollment, benefit options, limitations on benefits, and specific coverage are available on the University’s Benefits Office website or from the Benefits Office.

LTD benefits are not available until 90 days after the onset of disability. If necessary based on the timing of the prior leave and the LTD determination, the employee may need to use an unpaid Medical Leave of Absence to bridge benefits and/or pay until the insurance company comes to a determination on the application. (See Policy U515 Medical Leave of Absence.)

If an individual is released to return to work after a period of disability and collecting LTD he/she may apply for vacant positions. (See Policy U202 Talent Acquisition.) The University does not hold the position of an individual while on LTD, subject to applicable law, and the individual is not entitled to reinstatement to his/her position when no longer on LTD.

Policy:

If an individual files for LTD benefits under the University’s LTD benefit plan on or after January 1, 2024 and is subsequently approved, the individual will hold an “active employee” status at the University as long as they continue to 1) receive LTD benefits from the University's LTD carrier and 2) pay the appropriate premiums, but in no event will an individual retain an “active employee” status in excess of twenty-four (24) consecutive months while on LTD. After the twenty-four (24) consecutive months have run, HR will process the individual as a termination of employment and their “active employee” status will end. Employees who filed for LTD benefits under the University’s LTD benefit plan before January 1, 2024 and were subsequently approved will not have their “active employee” status end until their LTD benefits under the University’s LTD benefit plan are terminated by the LTD carrier. At that point, “active employee” status will be terminated.

An individual’s “active employee” status while on LTD is for the sole purpose of continuation of other employee benefits (e.g., medical, dental, vision, 403(b) retirement plans) in accordance with the applicable benefit plan documents, each of which are subject to change from time to time.

A termination of ”active employee” status will not terminate LTD benefits payments. The eligibility for continued LTD benefits payments, and maximum duration of LTD benefits thereunder, is determined by the LTD benefit plan’s terms.

Roles and Responsibilities:

Word/Phrase	Definition
Employee	The Employee is responsible for applying for LTD as appropriate and communicating with Leave Administration, including providing additional information, as necessary.
Leave Administration	Leave Administration is responsible for communicating with the LTD insurance carrier, the Employee, and the HRP or other unit representative as appropriate.