LTD4 – Benefits for Total Disability | Red Clay School District Benefits

Long-Term Disability Insurance

Benefits for Total Disability

Your LTD benefits for total disability are two-thirds of your basic monthly earnings (excluding overtime and other compensation) up to a maximum monthly benefit of $6,000. Your total disability income from the LTD Plan and all other sources, plus family Social Security disability benefits, cannot be more than two thirds of your basic monthly earnings at the time you become disabled.

Coordination with Social Security
You may be entitled to Social Security after you have been disabled for five months. Because the amount of your LTD benefit depends in part on your Social Security benefit, your LTD benefit cannot be correctly calculated until you apply for Social Security. You, or a member of your family, must contact the local Social Security office to start the claim process at the same time you begin your LTD claim process through the School District.

While your Social Security benefit is being determined, the insurance company will pay your LTD benefit without taking into account what you may receive from Social Security. You will need to first complete and return a reimbursement agreement stating that you will repay the insurance company for any overpayment you receive from a retroactive Social Security benefit. If you do not return the reimbursement agreement, the insurance company will either reduce your benefit by an amount estimated to be your Social Security benefit or suspend your benefits.

Note that once you’re receiving LTD benefits, any cost of living increase in your Social Security will not reduce your future LTD payments. This means you will receive the advantage of any increases in Social Security.

Medical Examination
Under the LTD plan, the insurance company can require that you be examined at any time by a physician of its choice to determine if LTD benefits should be awarded, or whether they should continue.

Your monthly benefit will be reduced by any income payable to you from these sources:

Loss-of-time benefits from workers’ compensation or a similar law
Local, state, provincial, or federal government disability plan or law
Salary or wage continuance plan provided by the School District
Insurance benefits you receive voluntarily through the School District that pay for all or part of your coverage
Social Security disability benefits
Periodic Social Security benefits after you reach age 62 (with the exception of benefits to a former spouse or children living with a former spouse). This offset is meant to apply to social security retirement and would offset social security benefits.
Any work-loss provision in the mandatory part of a no-fault auto insurance plan
Delaware State Employee Pension Plan benefits