Disability Insurance

Definition of Disability

For the purpose of the insurance, total disability means if during the first two years of any period of disability, a person is unable to perform the duties of their occupation, or during the continuation of the period of disability beyond two years, the person is unable to engage in any business or occupation or to perform any work for compensation, gain or profit for which they are reasonably fitted by education, training or experience.

Coverage

The plan consists of the following parts.

Salary Continuation Plan (SCP) - Short-term Disability Plan (Self-Insured)

• Upon exhaustion of accrued sick leave (use of vacation leave is optional), and upon approval, Auburn University will continue salary payments at a reduced rate of 60 percent of the pre-disability rate (maximum of $7,000 per month) until the elimination period (of 180 days for LTD) has been satisfied or the employee is able to return to work, whichever is sooner. 

• Neither sick nor vacation leave will accrue while the employee is receiving the benefit.

• There is no cost to the employee.

• Active full-time, non-student employees are eligible if the most recent employment period is continuous for a minimum of 12 months (nine months for faculty on a nine-month appointment). Coverage is effective on the date that employee has been actively at work for one full year from the date of most recent employment.

• The full SCP policy is available online. 

Long-term Disability Group (Offered by The Standard Life Insurance Company)

• It provides coverage up to 60 percent of employee's pre-disability eligible income (maximum $7,000 and minimum of $100 per month) if the employee is disabled as a result of an illness or injury.

• The employee must satisfy a 180-day elimination period, i.e. benefits begin on the 181st day of disability if approved.

• There is no cost to the employee. 

• Active full-time, non-student employees are eligible if the most recent employment period is continuous for a minimum of 12 months (nine months for faculty on a nine-month appointment). Coverage is effective on the date that employee has been actively at work for one full year from the date of most recent employment.

Voluntary Supplemental Long-Term Disability (Offered by The Standard Life Insurance Company)

• Voluntary Supplemental LTD coverage is available if the employee has become disabled and unable to work due to a non-work related illness or injury.

• Full-time benefit eligible employees who have been employed one year or longer may purchase a benefit of 10 percent (in addition to the AU provided LTD coverage) during Open Enrollment. 

• Active full-time non-student employees are eligible if the most recent appointment period is continuous for a minimum of one year (nine or 12 months as appropriate to the appointment).

• New employees within their first 30 days may also purchase LTD coverage with no medical underwriting.

• The cost is nine cents per $100 of covered earnings. The employee is responsible for the cost the coverage.

• To purchase coverage or for additional information, contact Jodi Skaggs with Premier Worksite Solutions at jskaggs@pwsal.com or 205-588-2604.