Long Term Disability Insurance

Eligible employees are covered by a long-term disability insurance plan (salary continuation). This plan assures continuance of a substantial portion of covered employees' salaries should they be deemed disabled by the plan's insurance provider.

The plan covers a disability resulting from either accident or illness, sustained on or off the job, lasting more than 90 days. Coverage begins with the first day of actual performance of duties for employees in eligible assignment categories. (See Benefits Eligibility chart in "You and UAB Handbook").

When a covered employee meets the definition of a disability, there is a 90-day waiting period before benefits can be paid. After the waiting period is met, the disabled employee will receive 66 2/3 percent of their monthly salary (not to exceed $10,000 per month) for the first 90 days. The benefit will then be reduced to 60 percent of their monthly salary (not to exceed $10,000 per month). This benefit may be further reduced by other benefits to which the employee may be entitled under (1) Social Security, (2) any state disability law, or (3) any other employer-sponsored plan including any disability or early retirement benefits actually received under the state retirement plan(s).

Assuming the employee continues to meet the definition of disability, coverage can continue, depending on age at commencement of disability, as follows: