short term disability program nova southeastern university
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SHORT TERM DISABILITY PROGRAM
Nova Southeastern University
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.
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 thePolicy Review Committee, to include the new Short Term Program as well as many other changes.
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.
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
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
Short Term Disability
Plan Design
Eligibility 90 days
Benefit waiting period:7 days
Benefit as percentage of salary: 60%
Maximum leave duration:
(includes the benefit waitingPeriod)
26 weeks/ 180 days /6 months
Accrued sick, personal and vacation time must be used beforeprogram benefits begin – as required with our former Sick Leave Donation program
Long Term Disability
Plan Feature Was Is Comment
Benefit Waiting Period
12 weeks/90 Days/ 3 months
26 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
Leave Policies
Policy Feature
Was Is Comments
Sick Leave Accruals
Presently no capCapped 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
Leave Policies
Feature Was IS CommentsEmployer Premium Contributions forEmployees 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 Donation
AllowedPolicy 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 .
Leave Policies
Feature Was IS Comments
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
Allows 5 year employees with large sick leave accruals to use these to augment LTD payment
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, 2010
6 days – 13 weeks13 weeks – end of disability or reach maximum disability period5 working days
Paid accrued or donated time, then unpaid Paid 50% salary benefit
Medical Leave Long Term Disability
Employment ends at 12 months
Short Term Disability Long 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
Waiting Period
Where Can I find Additional Information?
The Benefits Website
http://www.nova.edu/cwis/hrd/benefits/index.html
Include link to the Program Document
Who can I contact with Questions?
The Office of Human Resources
Write to [email protected]
Call 954-262-HR4U (4748)
Questions and Answers