Long-Term Disability (LTD), through New York Life Group Benefit Solutions (formerly Cigna), pays a portion of your earnings if you cannot work for an extended period of time due to illness or injury. Benefits are reduced by other sources of disability income you may qualify for such as Social Security and Workers’ Compensation.
Although you are automatically enrolled in LTD at no cost to you, LTD is a taxed benefit. This means you need to decide how you want the taxes applied when you enroll in coverage through Workday.
LTD Taxed Benefit: You don’t pay taxes on the premium that USD pays on your behalf, but you will pay taxes on the LTD benefits you receive if you become disabled and are unable to work due to an illness or injury.
LTD Non-Taxed Benefit: You pay taxes on the premium that USD pays on your behalf, but any LTD benefits you receive will not be taxed if you are unable to work for an extended period of time due to illness or injury.
| Long-Term Disability (LTD) | |||
|---|---|---|---|
| Percent of Earnings | Monthly Maximum | Elimination Period | Maximum Duration |
| 66 2/3% | $12,000 | 90 days | Up to Social Security Normal Retirement Age* |
*Applies in most cases. See your policy documents for any limitations.
Employees who are eligible for LTD benefits also have access to additional services at no added cost.