LTD Plan Highlights
Long-Term Disability Plan includes two options – Group LTD and IDI. Both provide a level of income replacement protection should you continue to be disabled beyond the period of time covered under the Short-Term Disability Plan. Note: Eligibility for LTD benefits does not depend on first having received STD benefits. Group LTD coverage provides income protection for Total Annual Cash Compensation (TACC) of $400,000 or less (or $480,000 or less, depending on the Group LTD option elected), while IDI coverage is available as an additional supplement to employees whose TACC is more than $400,000 (or $480,000, depending on the Group LTD option elected). IDI covers income above $400,000 to $700,000 (or above $480,000 to $840,000, depending on the Group LTD option elected).
Group LTD coverage provides you with a monthly benefit based upon a percentage of your TACC, less certain other disability benefits (see "Defined Terms" for the definition of "Benefits Offset"). Prudential is the claims administrator for Group LTD coverage.
If your TACC in effect for a plan year is less than $60,000, you are automatically enrolled in the LTD Plan for that given plan year. If you meet the plan's definition of disabled, the plan would provide:
If your TACC in effect for a plan year is $60,000 or more, you can choose long-term disability protection from among the following options:
If your TACC is greater than $400,000, you generally can choose additional LTD coverage under fully portable Individual Disability Insurance, insured and administered by Unum. You do not need to be enrolled in Group LTD coverage to elect IDI coverage, You are eligible for IDI if your TACC is from $400,000 to $700,000 if you elect the LTD 60% option (or from $480,000 to $840,000, if you elected the 50% option) and provides an additional maximum monthly benefit of up to $15,000. If you do not enroll in Group LTD coverage, then you are defaulted to the 60% option for IDI. If you are eligible, you will receive separate information regarding IDI. Unum is the claims administrator for Individual Disability Insurance.
- During the elimination period of 182 days and the first 24 months on Group LTD: It must be determined by Prudential that you cannot perform the material and substantial duties of your regular occupation because of an occupational or non-occupational injury or sickness.
- After 30 months of disability (the 182-day elimination period plus 24 months of Group LTD benefits): You're eligible for continued Group LTD benefits if Prudential determines that — because of an occupational or non-occupational illness or injury — you're unable to perform the duties of any gainful occupation for which you're reasonably fitted by training, education, and experience.
If your TACC is $200,000 or more, you may qualify for benefits under Group LTD coverage (under the coverage option you choose) if you're unable to perform the material and substantial duties of your regular occupation for the maximum payable duration of the disability. (Your premium will be higher in this case.)
Your Long-Term Disability Plan benefits may continue until you are determined not to be disabled, reach the maximum time period for benefits, or pass away.
Generally, if you continue to meet the definition of disability, benefits paid under the LTD Plan for a disability occurring before age 60 (or age 61, in the case of IDI) continue until you recover or you reach age 65, whichever occurs first. Benefits paid under the LTD Plan for a disability occurring after age 60 (or age 61, in the case of IDI) continue for a specified length of time as long as you are continuously disabled, based on the age at which you become disabled. Please see "Limitations on Certain Benefits" under "When Participation Ends" and "When Benefits Begin and End" under the "How Individual Disability Insurance ("IDI") Works."
If your TACC in effect for a plan year is less than $60,000, Group LTD coverage is fully paid by JPMorgan Chase and any benefits you receive if you become disabled would therefore be taxable.
If your TACC in effect for a plan year is $60,000 or more, you pay the premiums for your elected Group LTD coverage on an after-tax basis. As a result, any future benefits you receive if you become disabled would be tax-free. Your cost per pay period depends on your TACC, the level of coverage you choose, and your status as a tobacco user or non-tobacco user. Please see "Defined Terms" for the definition of "Total Annual Cash Compensation." Please see the definition of "Tobacco User Status."
As with Group LTD coverage, if you are eligible for and elect IDI coverage, you pay for it on an after-tax basis, so any benefits you receive if you become disabled would be tax-free. Your cost depends on your TACC, the level of coverage you choose, age, state of residency, and your status as a tobacco user or non-tobacco user.