Disability Insurance

Disability benefits pay a portion of your income if you become disabled and are unable to work. You are 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

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 need to 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 CM 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 .00385, and divide by 24 pay periods. For example, an employee who makes $50,000 annually would pay taxes on $8.02. ($50,000 x .00385 = $192.50; $192.50 / 24 pay periods = $8.02)
  • Pay later. If you use your long-term disability benefit, any benefit you receive will be taxed. For example, an employee who makes $50,000 annually would receive a monthly LTD benefit of $2,500 and would pay taxes on that amount when paid.

SHORT-TERM DISABILITY COVERAGE

Short-term disability coverage provides 60 percent of your annual pay rate from the 15th up to 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. Call a Benefits Communication Specialist at (816) 983-6840 for additional information and prices, and to enroll. Note that this benefit will not appear in Infor Gl​obal HR​ as you complete your Annual Enrollment because you must contact a Benefits Communication Specialist to enroll.

CRITICAL ILLNESS AND ACCIDENT INSURANCE

You may choose to purchase the following additional benefits:

  • Critical illness insurance pays a one-time tax-free payment upon diagnosis of a covered critical illness or condition, such as a heart attack, stroke or paraplegia.
  • Accident insurance provides you with a cash benefit to help pay for expenses resulting from an accident. You may purchase accident insurance without meeting health eligibility requirements as determined by Aflac, the benefit administrator. While your medical plan covers the cost of care following an accident, accident insurance provides you money for expenses not paid by your medical plan, such as:
    • Routine expenses, such as your mortgage and utility bills;
    • Expenses related to the accident, such as travel or car repairs; and
    • Medical expenses not paid by your Children’s Mercy medical plan, such as the portion of your deductible after your Health Account is depleted, or coinsurance for your prescription drugs.

Call a Benefits Communication Specialist at (816) 983-6840 for additional information and prices, and to enroll.

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Confirm your eligibility and when you can enroll for long- and short-term disability, and critical illness insurance and accident insurance.