DISABILITY
A disability can be difficult to deal with not only because of the medical concerns, but also because of the reduced income coming into the home. Disability insurance is an important part of the basic benefits package provided by your employer and is designed to replace a portion of your income when you have a qualified illness or injury that prevents you from working. This brochure will guide you through the steps you need to take to apply for and begin receiving a disability benefit, if the need arises.
THINGS TO CONSIDER
• A disability is a medical necessity that forces you to stop working. Ideally, you, your doctor, and your employer should all agree that you are unable to work for medical reasons.
• If approved, disability benefits begin after you’ve been away from work for 45 consecutive days. Use your annual and sick leave to cover you during this waiting period. You will also need to continue making any Thrift Plan loan payments to avoid becoming delinquent on your loan.
• If you have a Flexible Spending Account (FSA), we can only reimburse you for expenses you incur by the end of the month in which you begin receiving a disability benefit. For example, let’s say you’re going to have major surgery that might put you on disability for the last three or four months of the year. Any medical or dental costs you incur during that time would not be eligible for FSA reimbursement.
• Your monthly benefit will be offset (or reduced) by any compensation you receive, or could receive, from other sources such as Social Security, Workers’ Compensation, etc.
Checklist
Applying for Benefits…
Meet with your employer to discuss your situation
Have your doctor complete the Physician Statement portion of the application
Once You’re Approved…
FREQUENTLY ASKED QUESTIONS
Q. What will my monthly disability income be?
A. Generally speaking, you’ll receive two-thirds of the income you were receiving before you became disabled. For more specific benefit information, please review your Personal Statement of Benefits
Q. Is my disability benefit considered taxable income?
A. Yes. In most cases since your employer pays a portion of the disability insurance premium, the IRS considers it to be a taxable benefit. You will receive a W-2 form to file with your income tax returns.
Q. Will Deseret Mutual deduct my insurance premiums from my disability check?
A. Generally, your employer will pay the entire basic benefits premium while you’re receiving disability benefits. However, you may be responsible for a portion of the monthly premium if you’re enrolled in a high-cost health plan where less expensive options are available to you. In this case, we’ll deduct your portion of the premium from your disability check. We will also waive your SGTL and 24-Hour AD&D insurance premiums while you’re on disability. If you signed up for MetLife’s group home, auto, or long-term care insurance, be sure to contact MetLife directly to arrange your on-going payments.
Q. What happens to my Thrift Plan account while I’m disabled?
A. You won’t be able to contribute to the Thrift Plan while you’re on disability. Which also means you won’t be eligible for matching contributions from your employer. However, you may be eligible to withdraw or borrow money from your account and you can still direct your investments.
Q. Can I have my loan payments deducted from my disability check?
A. Yes, as long as your disability benefit is large enough to cover your regular deductions, insurance premium (if applicable), and loan payment. You may also make payments by check or by automatic deductions from your bank account.
Q. What happens if I’m unable to repay my Thrift Plan loan?
A. Contact our savings department to discuss your options.
Q. Is my spouse eligible for disability benefits through Deseret Mutual?
A. No. Deseret Mutual’s disability program provides benefits for employees only.
This information is provided as a service to help you make informed decisions. Nothing in this information should be considered legal, financial, investment, or medical advise. For a complete description of the plans. please refer to your Benefits Handbook. As with any major life event, you should consult with qualified prefessionals of your choice who can provide you with appropriate counsel and advise.
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