Long-term disability provides you and your family with protection from loss of your income if you become unable to work because of an accident, illness or injury. The Retirement Income Protection protects ongoing contributions to your retirement plan in the event of your disability. See Long-Term Disability Plan document for more information.
Premiums
Your premiums are determined by your gross salary and by whether you choose only the long-term disability coverage, or you elect to include the Retirement Income Protection (RIP), formerly know as Annuity Premium Benefit (APB), as well.
Coverage | Monthly | |
---|---|---|
Long-Term Disability | $.187 | |
Annuity Premium Benefit | $0.089 |
Retirement Income Protection
This is an optional coverage that is available with the LTD program. If you become disabled and qualify for long-term disability payments, the Retirement Income Protection (RIP) would continue contributions to a retirement plan for you.
The contribution will be equal to 14.29% of your pre-disability income and is available to participants in both the State Employee’s Retirement System (SERS) and the TIAA retirement plans.
Calculation Examples for both Monthly- and Bi-weekly-paid Employees
Below is a chart that illustrates per-pay contributions for both monthly and bi-weekly paid employees.
Coverage and Pay Type | Premium Rate | Calculation |
---|---|---|
LTD Monthly | $0.187 | Example = $40,000 annual base salary 1. Annual base salary times premium rate for yearly contribution $40,000 x $0.187 = $7,480.00 2. Yearly contribution divided by $100 divided by 12 monthly pays $7,480.00 ÷ $100 = $74.80 ÷ 12 = $6.23 per month |
APB Monthly | $0.089 | Example = $40,000 annual base salary 1. Add LTD and APB premium rates for a combined premium rate $0.187 + $0.089 = $0.276 2. Annual base salary times premium rate for yearly contribution $40,000 x $0.276 = $11,040.00 3. Yearly contribution divided by $100 divided by 12 monthly pays $11,040.00 ÷ $100 = $110.40 ÷ 12 = $9.20 per month |
LTD Bi-weekly | $0.187 | Example = $40,000 annual base salary 1. Annual base salary times premium rate for yearly contribution $40,000 x $0.187 = $7,480.00 2. Yearly contribution divided by $100 divided by 26 bi-weekly pays $7,480.00 ÷ $100 = $74.80 ÷ 26 = $2.88 per bi-weekly |
APB Bi-weekly | $0.089 | Example = $40,000 annual base salary 1. Add LTD and APB premium rates for a combined premium rate $0.187 + $0.089 = $0.276 2. Annual base salary times premium rate for yearly contribution $40,000 x $0.276 = $11,040.00 3. Yearly contribution divided by $100 divided by 26 bi-weekly pays $11,040.00 ÷ $100 = $110.40 ÷ 26 = $4.25 per month |