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Group Long Term Disability (LTD) - Excluded State Employees Only

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901. General Information

The Group Long Term Disability (LTD) Insurance Program was implemented in 1988 for active excluded employees. This benefit is intended to provide income protection in the event an employee becomes disabled due to an illness or injury and is unable to work for six months or longer.

The employee's premium is based on age, plan option, and an .80 cent administrative fee.

The Standard Insurance is the vendor for the Group Long Term Disability Insurance for Excluded Employees.

Authority

Government Code Section 19849.11

 

Open Enrollment is September 9 through October 4, 2019

902. Eligibility

Active excluded employees appointed permanent, half time or greater, with one of the following designations are eligible to enroll in LTD:
 
  • Managerial (M, E50, E59, E79, E99)
  • Supervisory (S, E48, E58, E68, E78, E98)
  • Confidential (C, E97)
  • Constitutional Officers (other than Legislative members) (E92)
  • Excluded/Exempt (E88, E89)
  • Excluded employees who are enrolled in LTD at the time they are re-designated to E01 through E21, E67, or E77 due to middle management reductions are allowed to continue the coverage. However, future incumbents appointed to these positions will be designated represented and are not eligible for LTD.  
Employees on limited term appointments who otherwise meet the eligibility criteria may enroll in LTD only if they have a mandatory right of return to a position and status that also meet the criteria.
 
Not Eligible

Represented (Rank and File) employees are not eligible to enroll.  However, they can contact their union to determine if there are any union-sponsored disability benefits available to them

 

903. Notification

Newly Hired or Newly Eligible

It is the Department's responsibility to notify newly eligible employees of the availability of the program. The notice must specify the 60 day enrollment eligibility period and how to enroll into LTD. A copy of the notice should be kept in the employee's personnel file to verify the employee has been informed of the LTD benefit and enrollment period. 

Open Enrollment

Personnel offices are notified of the open enrollment period though the HR Announcement.

The Department is responsible to notify active eligible employees of the open enrollment period. An eligible employee who is out on a leave of absence and returns after the open enrollment period has ended may be eligible to enroll. The Personnel Specialist must contact CalHR, to enroll the employee.

 

Open Enrollment Notification from Standard Insurance for Eligible Employees

Eligible employee NOT currently enrolled in LTD

Standard Insurance will mail out notices on behalf of CalHR to notice employees who are not enrolled in LTD of the upcoming open enrollment. A second notification will be mailed to provide more information on how to enroll, and a final reminder postcard will be mailed to remind employees that the open enrollment period will be ending.

Employees currently enrolled in LTD

Standard Insurance will mail out notices during open enrollment on behalf of CalHR to notify employees who are currently enrolled and who may wish to make changes.

 

904. How to Enroll

Employees are encouraged to enroll online. Should the Human Resources office receive an enrollment form, the personnel specialist should direct the employee to the CalHR State Employee website Group Long Term Disability section “How to Enroll" online at Standard Insurance  and return the form back to the employee.

Military Department - Military Active State Employees Only

Employees who are active are not eligible to enroll online, due to the Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS). 

The employee must enroll using the Enrollment Authorization Form. The employee can email or mail the completed form to Standard Insurance.

Cal Expo and Cal Fairs Department

Employees are not eligible to enroll online.

Employee must enroll using the Enrollment Authorization From and return the form to their HR office.

Personnel offices are responsible for verifying that the employee is eligible to enroll in LTD and has accurately completed Section A, B, and C of the form. 

The Personnel Specialist must verify the employee's monthly base salary and calculations are accurate, and complete section D.

Include in the remarks section:

  • Newly Hired  = Hire Date (MM/DD/YY)
  • Newly Eligible = Hire Date (MM/DD/YY)
  • Open Enrollment = Effective Date (MM/YY)

The Personnel Specialist shall email the form to socltdforms@standard.com. Provide a copy to your accounting office and retain a copy in the employee's official personnel file.

Do not send forms to the State Controller's Office (SCO).

 

905. Enrollment Opportunities

Newly Hired or Newly Eligible

Employees are eligible to enroll online at Standard Insurance.

The employee has 60 days from the date they become a new hire or a newly eligible employee. If the employee missed the 60 day eligibility period, they may apply only during a designated open enrollment period.

New Hire is defined as:

  • New appointment into an eligible position.

Newly Eligible is defined as:

  • Promotion to an eligible position.
  • Change in CBID from represented to non-represented (as defined in the eligibility criteria)
  • Change from an ineligible time base to a half-time or greater time base in an eligible position.

Open Enrollment

Effective September 2019 Open Enrollment will NO longer take place April 1 through April 30. Open Enrollment will take place in the fall during the same time frame as Health, Dental, and Vision open enrollment.

Open Enrollment will take place September 9 through October 4, 2019.

Refer to section 904, “How to Enroll", for information on how to enroll.

Do Not send forms to SCO for processing.

 

906. Premium Computations

Premiums are based on the employees age, monthly base salary, and the plan option they chose. 

How to calculate the employees monthly LTD premium:

Monthly base salary (x) age (+) 0.80 administrative fee =  monthly premium

 

907. Plan Options

Employees have two plan options based on their monthly base salary to choose from:

  • Plan Option A 55 percent of the first $18,182
  • Plan Option B 65 percent of the first $15,385

Example

Employee, age 50, makes $25,833.33 per month

 
Plan Options
Employees have two plan options based on their monthly base salary to choose from: Plan Option A 55 percent of the first $18,182 Plan Option B 65 percent of the first $15,385 Example Employee, age 50, makes $25,833.33 per month
Employee Age 50 Option A – 65 Percent Option B - 55 Percent
Monthly Salary to Claim$15,385$18,182
*Age Factor 0.003470.00175
Plus $0.80 Admin Fee$0.80$0.80
Total Monthly Premium$51.19$32.62

*example based on January 1 effective date

908. Plan Options and Rates – Through December 31, 2019

Option A – 65 Percent (075-111)
 
Plan Options and Rates – Through December 31, 2019 Option A – 65 Percent (075-111)
AGE  FACTOR
UNDER AGE 300.00030
30 – 390.00086
40 – 490.00203
50 – 590.00408
Over  600.00452
 
Option B – 55 Percent (075-119)
 
Plan Options and Rates – Through December 31, 2019 Option B – 55 Percent (075-119)
AGE FACTOR
UNDER AGE 300.00014
30 – 390.00043
40 – 490.00102
50 – 590.00206
Over  600.00229
 

Open Enrollment Plan Options – Effective January 1, 2020

Option A - 65 Percent (075-111)

Open Enrollment Plan Options – Effective January 1, 2020 Option A - 65 Percent (075-111)
AGE  FACTOR
UNDER AGE 300.00026
30 – 390.00073
40 – 490.00173
50 – 590.00347
Over  600.00384

Option B – 55 Percent (075-119)

Open Enrollment Plan Options – Effective January 1, 2020 Option B – 55 Percent (075-119)
AGE FACTOR
UNDER AGE 300.00012
30 – 390.00037
40 – 490.00087
50 – 590.00175
Over  600.00195

 

909. Effective Date

Effective Date for Newly Eligible or New Hire

Enroll Online

  • If the enrollment application is processed by the 10th day of the calendar month, the insurance will become effective on the first day of the next calendar month.
  • If the enrollment application is processed after the 10th day of the calendar month, the insurance will become effective on the first day of the second calendar month following the date the employee applied.

Forms Mailed to Standard Insurance

The enrollment form must be received by Standard by the end of the 60 day eligibility period. The effective date will be determined based on when the LTD form is received and the employee is enrolled by the Standard Insurance Account Representative.

Forms received after the end of the eligibility period, will be returned to the employee and the employee will be advised to enroll during the open enrollment period.

Example

Hired January 1 (60 day eligibility period ends March 1)

Enrolled online Jan 1

Effective February 1

Premiums will be deducted from the January pay warrant

 

Hired January 1 (60 day eligibility period ends March 1)

Enrolled Jan 11

Effective March 1

Premiums will be deducted from the February pay warrant

 

Hired January 1 (60 day eligibility period ends March 1)

Enrolled March 2

Missed enrollment opportunity, must wait till open enrollment.

 

Effective Date for Open Enrollment

Enroll online

Enroll Online September 9 through October 4, 2019.

Coverage will be effective January 1.

 

Forms Mailed to Standard Insurance

Standard must receive enrollment form by close of business on October 4, 2019.

Coverage effective January 1.

Forms received after October 4 will be returned to the employee due to late enrollment.

 

910. Premium Update

Annual Increase

On January 1, the employee's premiums will increase if they move from one age category to the next age category.

Premium Increase

Premiums will increase if the employee has a salary increase. (e.g. Merit Salary Adjustment; GEN; or Range Change.)

 

911. Cancelation

Employees can cancel coverage anytime by logging onto Enroll Now or by contacting Standard Insurance.

Cancelation and Retirement for Cal Expo and Cal Fairs Departments

The employee must complete a new Enrollment Authorization form, check the “cancel box", and return the form back to their Human Resources office.

Personnel Specialist will email a cancelation form to socltdforms@standard.com.  Provide a copy to your accounting office and retain a copy in the employee's official personnel file.

Personnel offices are responsible for completing Section C of the form. 

Include in the remarks section:

  • Cancelation

Do not send forms to the State Controller's Office (SCO)

 

912. Filing a claim for Disability

Definition of Disability

Due to a physical disease, injury, pregnancy, or mental disorder, the employee requires the regular care and attendance of a doctor and:

  • After the first 24 months of benefit payments, the employee is unable to perform each of the material duties of any gainful work or service for which the employee is reasonably qualified.
  • Is unable to perform their duties of their regular job; or
  • Is unable to perform all of the duties on a full-time basis.

How To File A Claim

If employee is enrolled in LTD and will be out due to illness or injury for six months or longer, the Personnel Specialist should contact The Standard Insurance at (888) 641-7193, to start the employer process.

The Personnel Specialist should advise the employee to contact Standard Insurance as soon as the employee is out on a Disability or on a Worker's Compensation, to start the process of filling a claim.

Standard will send the following documents to the employee:

  • Cover letter with instructions on how to initiate the LTD claim process;
  • State Of California Long Term Disability Benefits Employee's Statement (SI13379-643146-EE)
  • A postage paid return envelope.

Standard will send the following documents to the employer:

  • Cover letter with instruction on how to complete the LTD claim and requested documents
  • State of California Long Term Disability Employer's Statement (SI13379-643146-ER)
  • A postage paid return envelope.

 The personnel office must complete the Employer's Statement, and provide a copy of the duty statement and document three months of pay prior to disability up to last day worked within five days of receiving the claim request.

 

Mail Completed form to Standard Insurance at:

Standard Insurance Company

Attn: Employee Benefits Department

PO Box 2800

Portland, OR 97208-2800

 

Waiting Period

LTD has a six month waiting period.

 

Premiums must be paid during the waiting period or until the claim has been approved, if premiums are not paid during the waiting period, the employee can lose the benefit.

Therefore, it is very important that the personnel specialist notifies the employee to contact Standard Insurance when the employee goes out on a leave of absence or workers' compensation.

 

Claim Approved

Once the claim has been approved, benefit payments will be sent directly to the employee and the LTD premiums will be waived while the employee is receiving benefit payments.

 

If premiums were paid during the benefit approval period, Standard Insurance will send a refund directly to the employee.

 

Tax-Free Benefit Payment

Monthly LTD benefits received are non-taxable.

 

Return to Work

If the Employee wishes to reinstate the voluntary automatic payroll deduction and continue coverage, and the employee is still eligible to re-enroll in LTD, the employee must contact Standard Insurance at (888) 641-7193, within ten days of returning to work to re-enroll.

 

913. Loss of Coverage

The Personnel Specialist should contact CalHR when an employee separates, transfers to a rank and file position, retires, separated due to an adverse action, or at any time the employee may be off pay status and not receive a pay warrant.

In addition to contacting CalHR, the Personnel Specialist should tell the employee to contact Standard Insurance, should they wish to continue coverage since the automatic premium deductions will cease if the employee does not receive a pay warrant.

Retirement

The LTD will cancel automatically the month the employee retires. The employee can cancel any time prior to retirement by contacting Standard Insurance. 

There is no conversion privilege when employees retire.

Employee Transfers to a Rank and File Status

If an employee transfers to a represented position, the employee may continue LTD coverage for 24 month on direct pay. The employee should contact Standard Insurance within 60 days of the date of loss of coverage to arrange for direct payment of the premiums

The employee can visit the Standard Insurance website and complete the Request for Long Term Disability 24 Month Direct Pay Coverage and return the form to the address listed, or the employee may contact Standard Insurance to request the form.

Employee Separates from State Service or Leave of Absence

If an employees separates from State service or takes a leave of absence, they  may convert their group LTD coverage to an individual disability plan providing they have been enrolled in the group plan for at least 12 months and they are not disabled from performing the duties of their occupation at the time they separate or take a leave. The employee should contact Standard Insurance within 31 days of separation or the beginning of the leave of absence.

The employee can visit the Standard Insurance website, complete the Request for Long Term Disability Conversion Materials, and return the form to the address listed, or the employee may contact Standard Insurance.

Upon a return from a separation or a leave of absence, if the employee is still eligible and premiums were made while on a leave, the employee must contact Standard Insurance within five days if they wish to continue coverage with an automatic payroll deduction.

 

914. Contact Information

CalHR

Email: LTD@CalHR.ca.gov

Fax: (855) 238-3276

 

Standard Insurance

900 SW 5th Avenue

Portland, OR 97204-9805

Email: socltdforms@standard.com

Direct Customer Service Line: 1-971-321-6448

Toll-Free Customer Service Line: 1-888-641-7193

Hours of Operation: Monday 5:00 a.m. to 5:00 p.m. Pacific Time

 

915. Website Information

 

916. Forms

  Updated: 3/9/2015
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