Disability Retirement

FunHRBanker

Does anyone have a policy about changing the status of an employee on LTD (who will not be able to return from disability) to "Disability Retirement"?

AJ SPHR

I'm not sure that I understand the question, but will provide the following in hopes that it will help.
1. At my employer, when someone is on LTD, they have been terminated from the company for all benefits, except the defined benefit pension plan. We do not hold their job and they continue to receive LTD payments as long as they meet the disability requirements.
2. If they elect to begin receiving benefits from the pension plan under the disability retirement provisions, they contact our administrator and request paperwork they must complete to be put into pay status.

There's really no involvement from our end and we don't change any statuses at the employer, so I'm not sure what you're looking for?

Pork

FunHRBanker: In a previous employer, our LTD always came after STD, which infact medically retired the ee and we dropped from our payrolls, offered COBRA coverage, while the X-EE applied for SSI Disability and medacare/medacaid. Check your plan documents fine print and I guess for all intent and purposes your X-EE on LTD is in fact on Medical Disability Retirement. My current employer does not offer a LTD plan, I wish we did, presently, a medical disqualification calls an immediate termination. We do this because if the ee remains on our rolls as an employee he/she can not be favorably considered by SSA for disability claim until un-employed for 6 months.

PORK

FunHRBanker

Though I know you are both right, there are, of course, special circumstances. The x-ee is the son of the deceased chairman of the board and the higher-ups at one time or another pretty much guaranteed him to have retiree benefits (medical, dental, etc.). The problem came up when we had our annual stockholders meeting and our current president discussed the x-ee's medical condition of "having his big toe amputated." EEEK, I know, but that finally blew over after a small panic on my part and a reminder to all upper management that we should NOT discuss any medical issues. So, long story longer, as long as we classify this person as termination due to "disability retirement" he will be able to stay on our insurance. I guess I'm glad to know this is new to more people than just me! Thanks! Any ideas of where else I could look for policies?