Could you pay your bills if an illness or injury prevented you from working? Disability benefits can help.
Disability benefits are administered by Lincoln Financial Group.
Short-Term Disability (STD)
STD benefits replace a portion of your income if you’re unable to work due to a pregnancy, illness, or non-work-related injury. FTI Consulting automatically provides STD coverage for you free of charge.
The STD benefit begins on the eighth calendar day for an accident, illness or maternity case for which you are unable to work. Under the plan, the first seven days of a disability is considered the elimination or waiting period. During this waiting period, FTI Consulting will pay employees at 100% of their regular pay.
STD benefits are paid up to a maximum of 180 days. During this period of disability, benefits will be adjusted to take into account any other sources of income and state mandated benefits—making sure that your disability pay would not exceed 66.67% of your calculated benefit, as defined herein.
The benefit will be 66.67% of your annual eligible earnings as of the date you become unable to work with a maximum benefit of $6,410 per week, which is equivalent to $500,000 of annual eligible earnings. This benefit will not be subject to taxes because the premiums are subject to tax.
Examples of Salary Continuation—Accident, Illness, and Maternity
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Day 1 – 7: 100% of regular earnings paid by FTI Consulting
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Day 8 – 180: 66.67% of weekly eligible earnings up to $6,410/week
Long-Term Disability (LTD)
FTI Consulting automatically provides basic LTD coverage for you free of charge. LTD benefits pick up where your STD benefits end. The policy provides disability income protection in the event of an illness or injury that lasts in excess of 180 days. The benefit is 60% of monthly eligible earnings up to a maximum monthly benefit of $15,000. The maximum benefit is equivalent to 60% of annual eligible earnings of $300,000, and it will be tax-free to you when paid because the premiums are subject to tax.
Long-Term Disability Buy-up
If you have annual eligible earnings in excess of $300,000, you have the option to purchase additional coverage that would provide a 60% benefit on up to $500,000 of eligible annual earnings. That means you would receive an additional monthly benefit of up to $10,000 for a total maximum benefit of $25,000. This buy-up coverage will also be tax-free because the premiums are paid on an after-tax basis, and you are only responsible for paying the premiums on the benefit in excess of the basic LTD coverage.
Additional Plan Features and Limitations
In the event a disability lasts beyond 12 months and is significant enough to limit the ability of the disabled employee from performing two or more Activities of Daily Living (ADLs), additional benefits are available. Additional information is available in the plan document.
The length of claim is determined by Lincoln Financial Group and is based on documentation provided by your physician. LTD benefits typically continue to the age of 62. If you are disabled at age 62 or older, the table below reflects
the duration of benefits based on your age at the time of your disability.
|
Maximum LTD Benefit Duration |
|
|
Age on Date Disability Starts |
Maximum Benefit Duration |
|
Before age 62 |
Greater of 42 months or to age 65 |
|
62 |
42 Months |
|
63 |
36 Months |
|
64 |
30 Months |
|
65 |
24 Months |
|
66 |
21 Months |
|
67 |
18 Months |
|
68 |
15 Months |
|
69 and over |
12 Months |
Things to Consider
When deciding whether to enroll in LTD disability buy-up coverage, be sure to consider the following:
Cost per Paycheck
The cost of disability coverage is based on the level of coverage you elect. You’ll be able to see the cost per paycheck when you enroll through the FTI Benefits Center website.
Other Income Sources
If you were unable to work, would other sources of income be available to you, such as sick pay, salary continuance, a short-term state disability plan, or Social Security? If so, consider whether you would have enough money to pay your ongoing expenses for a period of time.
Taxes
Disability benefits may be taxable as ordinary income. That means federal and state income taxes will be deducted from disability benefit checks. When choosing a disability coverage level, be aware that taxes may affect the dollar amount of your benefit.