Long Term Total Disability Program

95.1

Policy

It is the policy of the University to insure regular full-time employees on the first day of the month after completion of one full year of employment under the long term total disability program. The long term total disability program is intended soley to make monetary benefits available to an employee in the event of long term total disability and is not a job protection program.

95.1.1

Under this plan, total disability is defined as the inability of the employee, by reason of sickness or bodily injury, to engage in any occupation for which the employee is reasonably fitted by education, training, or experience for more than six (6) full calendar months.

95.1.2

The University and/or the authorized plan administrator have the right to require medical examinations of an employee for the purposes of establishing and maintaining entitlements under this policy.

95.1.3

Termination of long term disability insurance coverage occurs upon the termination of regular full-time active service, on the first day of the seventh (7th) month of an approved leave without pay, on the last day of the month which is seven (7) months prior to the month the employee attains age seventy (70), or upon discontinuation of the program by the University.

95.1.4

Income payments on approved claims are provided under two (2) separate income benefit components of the program.

95.1.4.1

The initial payments are made by the University and are a continuation of basic regular salary. These payments continue after the onset of the disability until the first day of the month following six (6) full calendar months.

95.1.4.1.1

The University continues supplemental income payments in accordance with the formula for an additional thirty-six (36) months. The provisions of 95.1.5 are also applicable.

95.1.4.1.2

The primary or insured income benefits period begins on the first day of the month following six (6) full calendar months of the total disability condition.

95.1.5

Income benefits under the primary or insured part of the plan cease at the earliest of the following occurrences:

a.

At the time the long term disability ceases, as defined in 95.1.1 in this policy;

b.

In the age sixty-five (65) birth month if the onset of the long term disability condition occurred prior to age sixty (60);

c.

For long term disabilities arising on or after age sixty (60) after five (5) years;

d.

Attainment of age seventy (70);

e.

Death; or

f.

Failure of the employee to comply with provisions and requirements of the plan.

95.1.6

The required approval authority for benefits in months one (1) through six (6) will be the University of Kentucky and in months seven (7) and thereafter will be the plan administrator, Underwriters Safety and Claims, Louisville, Kentucky.

95.1.7

The benefit formula for approved claims is as follows:

95.1.7.1

For months one (1) through six (6), the benefit formula is one hundred percent (100%) of the employee's salary, less authorized reductions.

95.1.7.2

For months seven (7) through eighteen (18), the benefit formula is ninety percent (90%) of the employee's salary, less authorized reductions.

95.1.7.3

For months nineteen (19) through thirty (30), the benefit formula is eighty percent (80%) of the employee's salary, less authorized reductions.

95.1.7.4

For months thirty-one (31) through forty-two (42), the benefit formula is seventy percent (70%) of the employee's salary, less authorized reductions.

95.1.7.5

For months forty-three (43) and thereafter, the benefit formula is sixty percent (60%) of the employee's salary, not to exceed three thousand dollars ($3,000.00) per month, less authorized reductions.

95.1.8

Primary Income Benefit Formula

the basic regular monthly salary, not to exceed a total monthly payment of three The long term disability trust, a trust established by the University, pays sixty percent (60%) of thousand dollars ($3,000.00), less any amounts received from other government programs, i.e., social security or workers' compensation, and from the employer as a result of the same disability condition. Trust payments are made at the end of the month.

95.1.9

Retirement Contributions

The long term disability trust also makes retirement contributions, both the employee's and the employer's share which were in effect at the outset of the disability, to the employee's annuity contract or contracts each month.

95.1.10

Supplemental Income Benefit Formula

The University supplements the benefits paid in conjunction with the primary plan formula by an amount that will produce benefits from all sources equal to the benefit formula as specified in 95.1.7 for the first forty-two (42) month period. University supplemental payments are also made at the end of the month.

95.1.11

The University reserves subrogation rights should the disability condition arise as a result of third party negligence.

95.1.11.1

Failure to protect the University's rights may result in a denial of all benefits under this program.

95.1.12

This disability program does not cover total long term disability conditions that arise from or in conjunction with the following:

a.

War or any act of war, declared or undeclared; or

b.

An intentional self-inflicted disability.

95.2

Delegation

Administration of the long term disability insurance program is a function of the Employee Benefits Office.

95.3

Procedure

95.3.1

Coverage of an employee is automatic after satisfaction of the requirements in 95.1

95.3.2

An employee desiring to apply for benefits under this program must contact the Employee Benefits Office and complete the required application papers.

95.3.2.1

An employee applying for benefits under this program must also make application for social security disability benefits.

95.3.2.2

An employee applying for benefits under this program must have ceased all University work before the application will be processed.

95.3.2.3

In the event an employee applying for benefits under this program is also making application for benefits under the University workers' compensation program, the University reserves the right to hold the long term disability application in obeyance until the workers' compensation claim has been settled.

95.3.3

The determination of eligibility for income benefits is vested in the plan administrator, Underwriters Safety and Claims, Louisville, Kentucky.

95.3.3.1

Employees have appeal rights that are made evident in writing at the time a claim is denied.

95.3.3.2

The Employee Benefits Office may authorize the employing department to continue to pay a salary during the first six (6) month period for a staff employee.

95.3.4

University payments made to employees during the first six (6) months are charged to the accounts where the employee's salary was budgeted.

95.3.4.1

University supplemental payments for months seven (7) through forty-two (42) are charged to a special account established for that purpose and administered by the Employee Benefits Office.

95.3.5

Payment shall be made for up to one year's accumulated vacation leave in the event an employee ceases to receive disability benefits due to retirement, death or because of being declared no longer disabled.

95.3.5.1

At the beginning of the seventh (7th) month of disability, the records of the employee's vacation balance, if any, on the date of onset of disability shall be transferred to the Employee Benefits Office by the employing department. At the same time, the employing department shall also transfer funds sufficient to pay the employee's remaining vacation balance not to exceed one year's accumulation.

95.3.6

For an employee applying for benefits under this policy, the employee's position shall be held for a period not to exceed 90 days from the last day worked or a period which may be covered by accrued temporary disability leave, whichever is greater.