Benefits Guide
Long-Term Disability (LTD) Insurance
Your employer provides you with LTD coverage equal to 66.67% of your total compensation to a maximum monthly benefit of $20,000. You automatically receive this coverage and do not need to enroll. LTD benefits begin after you have been disabled for six months (180 days). LTD benefits are offset by any disability benefits you receive from certain other sources, such as Social Security and Workers Compensation. Any benefit you receive will be increased each year you are disabled with a 3% cost-of-living adjustment (COLA).
So that Long-Term Disability benefits will be tax-free upon receipt, an after-tax deduction will be taken from your paycheck and your employer will “cancel out” your deduction with a reimbursement on the same paycheck.