Disability Insurance

Disability benefits pay a portion of your income if you become disabled and are unable to work. You're considered disabled if you’re unable to perform the essential duties of your job because of accidental bodily injury, sickness, mental illness, substance abuse or pregnancy.

LONG-TERM DISABILITY COVERAGE

We provide long-term disability coverage at no cost if you are a full-time, weekend option full-time or weekend option team member.

Waiting period before benefits begin	90 days
When benefits end	When you are medically able to return to work
Maximum duration of benefits	Until normal retirement (age 65) or 48 months, if greater (see the Summary Plan Description for the maximum duration of benefits if you become disabled after reaching age 63)
Monthly benefit	60% of pay rate, up to $15,000 per month
Maximum annual salary covered	$300,000 per year
Cost to you	No cost

Pay Taxes Now or Later

Children’s Mercy pays the cost of your long-term disability insurance benefit coverage. However, you must pay any applicable taxes on this benefit. The Internal Revenue Service gives you the choice to pay these taxes now or later:

Pay now. The taxes associated with your long-term disability insurance benefit are deducted from your paycheck. This means you would pay taxes on the premiums that Children's Mercy is paying on your behalf. The downside to paying taxes now is you pay taxes on a benefit you hope you will never need to use. The upside to paying taxes now is your benefit will not be taxed, if paid. To calculate the bimonthly premium amount, multiply your salary (limited to $300,000) by the rate of .00325, and divide by 24 pay periods. For example, a team member who makes $50,000 annually would pay taxes on $6,77. ($50,000 x .00325 = $162.5; $162.5 / 24 pay periods = $6.77).
Pay later. If you use your long-term disability benefit, any benefit you receive will be taxed. For example, a team member who makes $50,000 annually would receive a monthly long-term disability benefit of $2,500 and would pay taxes on that amount when paid.

SHORT-TERM DISABILITY COVERAGE

Children’s Mercy pays the cost of your short-term disability insurance benefit coverage. Short-term disability coverage provides 65% (up to $1,500 per week) of your weekly base pay from the time your Extended Illness Time is exhausted or after seven days of continuous leave, whichever is later. The payments are taxable and will continue until the 90th day of your disability or until you are released to work, whichever is earlier. This plan may “fill the gap” until long-term disability coverage is effective.