Premiums for supplemental disability benefits will rise by 21 percent in 2010, but employees can reduce their monthly cost by choosing a longer waiting period for benefits.
UC's Supplemental Disability plan provides income if you can no longer work because of illness, injury, pregnancy or childbirth. Employees are eligible to sign up for the plan during their initial enrollment period when they are hired or later if they submit to a physical exam and receive approval from the insurance company.
Many new employees choose a shorter waiting period (7 or 30 days) because they have not yet earned enough sick days or vacation leave to ensure they will be paid during an extended absence from work.
Changing your waiting period from 7 to 30 days, or from 30 to 90 days, can substantially cut your monthly cost for this insurance. However, before making a change, there are some important facts to consider:
- The plan requires you to use up to 22 sick days, if you have them, before receiving disability benefits, even if you have chosen the 7-day waiting period.
- Each waiting period is based on calendar days, not work days. That means supplemental disability payments may begin sooner than you realize. For example, you need just 22 sick or vacation days (168 hours) to cover the 30-day waiting period, and 66 to 70 days (528 to 560 hours) to cover the 90-day waiting period.
- UC's disability insurance covers eight weeks for an uncomplicated pregnancy. That means if you have a 90-day waiting period, you will receive no supplemental disability benefits.
- Supplemental disability insurance replaces up to 70% of your eligible earnings. If you are eligible to retire (age 50 or older with five or more years of service credit) and your UC Retirement Plan benefit would be 70% or more of your salary, you may not need supplemental disability.
Consider your choices carefully before increasing your waiting period; changing back to a shorter period later requires a statement of health from a physician and approval of the insurance company.
To calculate your supplemental disability premium, use the Insurance Calculator on the Open Enrollment website. You can also read complete information about UC's disability benefits in the Disability Factsheet .
If you decide to change your waiting period, you will need to complete the UPAY 850 and submit it to your Benefits or Payroll Office.