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SHORT TERM DISABILITY PROGRAM Nova Southeastern University.

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Presentation on theme: "SHORT TERM DISABILITY PROGRAM Nova Southeastern University."— Presentation transcript:

1 SHORT TERM DISABILITY PROGRAM Nova Southeastern University

2 Effective July 1, 2010 NSU introduces a new Short Term Disability Program that will provide disabled employees with 60% of their salary for up to 26 weeks or 6 months. This new program replaces the Sick Leave Donation Program only, not the entire Sick Leave program. Eligibility for the new program will be the same as our Life Insurance and Long Term Disability eligibility rule, employees must be employed for 3 months.

3 Effective July 1, 2010 Changes were made to the NSU Long Term Disability program to coordinate with the new Short Term program and to provide better coverage. NSU Leave Policies were updated by the Policy Review Committee, to include the new Short Term Program as well as many other changes.

4 Why Make Changes? Gaps in present benefit programs and policies affect all types of employees Younger and new employees; Middle-aged employees; And older, long term employees.

5 Why Make Changes? An analysis was performed * 24% or 948 employees have less than 1 week of accrued sick leave; of this group 284 have been employed for less than one year and are not eligible for donated sick leave 48.7% or 1,899 employees have 3 weeks or less of accrued sick leave Altogether, 76.% or 2,990 employees have 10 weeks or less of accrued sick leave * Based on 2009 data

6 What is the solution? Provide better income protection for ALL employees in need by offering  Short Term Disability Program;  Increasing the Long Term Disability benefit and the LTD Minimum Benefit Period; and  Better coordinating benefit plans and university policies to fill coverage gaps

7 Short Term Disability Plan Design Eligibility90 days Benefit waiting period: 7 days Benefit as percentage of salary:60% Maximum leave duration: (includes the benefit waiting Period) 26 weeks/ 180 days /6 months Accrued sick, personal and vacation time must be used before program benefits begin – as required with our former Sick Leave Donation program

8 Long Term Disability Plan Feature WasIsComment Benefit Waiting Period 12 weeks/90 Days/ 3 months26 weeks/ 180 days / 6 months Dovetails with the end of the Short Term Benefit period Benefit as a Percentage of Salary 50 %60 % Provides better income protection Maximum Benefit Period for Older Employees At age 65 the Maximum Benefit Period is 24 months and reduces thereafter At age 65 the Maximum Benefit Period is 24 months and does not reduce thereafter Provides a longer period of LTD coverage to older employees

9 Leave Policies Policy Feature WasIsComments Sick Leave Accruals Presently no cap Capped at 26 weeks Employees with more than 26 weeks of accrued time at July 1, 2010 will keep accrued leave and will begin to accrue again when their leave balance drops below 26 weeks Requirement to use Paid Time Off accruals Sick Leave Donation program requires employees to use sick, personal and vacation time before receiving any benefit under the program Employees are required to use sick, personal and vacation time before Short Term Disability benefit begins No change

10 Leave Policies FeatureWasISComments Employer Premium Contributions for Employees on Medical Leave 12 weeks/90 Days/ 3 months 26 weeks/ 180 days / 6 months Provides an additional 3 months of employer premium contributions Sick Leave DonationAllowed Policy replaced by Short Term Disability Program Covers employees with less than one year of service Sick Leave Donation Donated time used for well child care Benefits paid while employee is disabled only – not for time taken to provide well child care Sick Leave Donation policy stated that donated time was to be used only for an employee’s own illness. However, over time, the practice had digressed from the policy. The Policy Review Committee redrafted policy to eliminate the practice.

11 Leave Policies FeatureWasISComments Extended Medical Leave Employment ended after 12 months Employment ends when Long Term Disability benefit typically begins, after 6 months Employees with 5 years or more of service and who have been approved for Long Term Disability may be granted a period of extended medical leave (for a total of 12 months of Medical Leave and Extended Medical Leave, combined). For longer term employees with large sick leave accruals, this provides an opportunity to use the accruals during an extended period of disability. Special Rule for 5 Year Employees Allows 5 year employees with large sick leave accruals to use these to augment LTD payment

12 Benefit Programs After July 1, 2010 and Introduction of Short Term Disability Program 7 calendar days 8 days – 26 weeks 26 weeks - end of disability or reach maximum benefit period Before July 1, days – 13 weeks 13 weeks – end of disability or reach maximum disability period 5 working days Paid accrued or donated time, then unpaidPaid 50% salary benefit Medical LeaveLong Term Disability Employment ends at 12 months Short Term DisabilityLong Term Disability Paid accrued time, then 60% salary benefit LTD benefit continues until end of disability or reach maximum disability period 5 year provision, employment ends at 12 months Employment ends at 6 months Waiting Period

13 Where Can I find Additional Information? The Benefits Website Include link to the Program Document

14 Who can I contact with Questions? The Office of Human Resources Write to Call HR4U (4748)

15 Questions and Answers


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