LTDisability-Ending Coverage at 65? Legal?

jmcaa

We are considering changing our Long-Term Disability Plan. A bank in our area has cancelled disability coverage for employees 65 and over. Does anyone else have this type of plan? I wondered whether age discrimination would come into play, but the bank said there had no problems doing this.

If your plan drops disability coverage for employees 65 and over, please let me know and also what state you are in.

Thanks!

Theresa Gegen TX

[font size="1" color="#FF0000"]LAST EDITED ON 07-02-03 AT 08:34AM (CST)[/font][p]While, I don't know why there would not be an age discrimination problem. The EEOC takes the position that you can't discriminate on benefits. For medical type benefits, the EEOC follows the equal cost or equal benefit rule, this means that the employer (for employees who qualify for medicare), must either (1) spend the same amount for benefits regardless of age (that way the benefits can be different) or (2) provide the same benefits regardless of age (that way the costs can be different and employees on medicare can just get a supplemenal).

I am wondering if the disability policy only provides benefits until age 65 (many do). In which case, employees over 65 would not be eligible for any benefits under the policy. I am not sure what position the EEOC would take about that. You might want to check their website and policy guidance at [url]www.eeoc.gov[/url]. If you find the answer I would love to hear it.

Good Luck!

Well, I have just been so curious, I have decided to check the EEOC website myself. If you look at the EEOC's compliance manual on line, you will find a section about age discrimination and ltd benefits with specific examples of what is legal and what is not under the ADEA. Remember, just because the bank says they have no problem doesn't mean that they are following the law. And it is not the insurance company's job (although they should know the law -- and should let you know how it applies) to ensure that the employer does not violate the ADEA.

Pearce

Our policy has maximum benefit period limitations as follows:

Disability commencing under age 60 will have a maximum period to age 65 (a minimum of 60 monthly payments).
Disability commencing at 60 - 60 monthly payments
Disability at 61 - 48 monthly payments
Disability at 62 - 42 monthly payments
Disability at 63 - 36 monthly payments
Disability at 64 - 30 monthly payments
Disabilty at 65 - 24 monthly payments
Disability at 66 - 21 monthly payments
Disability at 67 - 18 monthly payments
Disability at 68 - 15 monthly payments
Disability at 69 or over - 12 monthly payments

We have had similar coverage written for the past ten years in the states of LA and TX.