The State of Iowa's long term disability (LTD) insurance plan provides monthly benefits if you have an illness or injury that prevents you from performing your own occupation
Provider
Long term disability insurance is provided by The Standard.
Eligibility
You are eligible for the state's LTD insurance coverage if you are a probationary or permanent employee who works 30 hours or more per week.
If you are a new employee, coverage is effective the first day of the calendar month following the completion of one month of continuous employment in an eligible class.
Cost
The State pays the entire premium for your LTD insurance coverage.
Disability
A disability is a condition that means you cannot perform the regular duties of your occupation and your monthly earnings are less than 80 percent of your pre-disability earnings. Twelve months after you meet the definition of disability, you must be unable to engage in any gainful occupation for which you are suited by education, training or experience in order to continue to receive disability payments.
Disability determinations are made by The Standard and must be medically supported. Limitations and exclusions (i.e. pre-existing conditions, mental/nervous/substance abuse, etc.) may apply in certain situations.
Benefit Elimination Period
You must be disabled through your elimination period. The elimination period is the longer of:
- 90 working days (excluding holidays and weekends - approx 18 weeks) OR
- Until all sick leave is exhausted, whichever comes later.
You may be approved for benefits before the waiting period is up, but you cannot receive LTD payments until the end of your waiting period.
*Days that you work during the elimination period may not count toward satisfying the 90 days working day elimination period
Insurance Benefits during the Elimination Period
The State's share of your health, dental and basic life insurance premiums continue while you are using sick leave, vacation or you are on paid/unpaid Family Medical and Leave Act (FMLA) leave.
If you have exhausted your sick and vacation leave and are on medical leave without pay, the state share of your health and dental insurance premiums will stop at the end of the month of your last day in paid status unless you are on approved FMLA. You can either drop your health and dental coverage or you can continue your insurance by making monthly payments for the full premium to your human resources associate. You can continue to make these payments for as long as you remain on approved leave without pay.
Long Term Disability Benefit
If you become disabled, the LTD plan will replace a portion of your pre-disability earnings. The plan’s coverage offers a benefit of up to 60 percent of up to $60,000 of your annual base earnings. Base earning is your regular rate of pay and does not include overtime pay or other extra compensation.
- Minimum LTD Monthly Benefit is $100
- Maximum LTD Monthly Benefit is $3,000
Long Term Disability Benefit Offset
Your monthly LTD benefit may be offset (reduced) by other payments (such as Social Security disability, Workers' Compensation, Veterans Administration benefits, or other state or group disability payments) received as a result of your disability. Your monthly LTD benefit will not be less than $50.
Disability or retirement benefits received from the Iowa Public Employees Retirement System (IPERS) are not deducted from your LTD benefit payment. However, IPERS may offset IPERS disability benefits by the amount of group LTD benefits.
Review The Standard Group Long Term Disability (LTD) Insurance Certificate for more information about benefit offsets.
Taxation of LTD Benefits
LTD benefit payments are taxable income because the State pays the full cost of the premium.
More Information
For more information about your coverage, please contact your human resources associate.
The Department of Administrative Services – Human Resources Enterprise is providing this information about the State of Iowa’s benefits. The information on this web page is subject to change. Nothing herein shall be construed as a guarantee of benefits. This webpage is not a complete description of the State of Iowa’s benefit plans. Nothing on this web page supersedes or changes any of the terms and conditions of any plan documents, insurance policies, or other legal agreements. If the wording in this web page contradicts any plan documents, laws, regulations, administrative rules, insurance policies, or other legal agreements, the wording in the official documents and agreements will govern.