Short-Term Disability (STD)
Inframark provides STD coverage at no cost to you after you complete 90 days of service. If you are out of work for more than 80 hours as a result of a non-work related illness or injury, you may be eligible to receive an STD benefit (provided you meet the definition of disability under the terms of the plan). You will receive 65% (if you have less than 5 years of service) or 80% (if you have 5 or more years of service) of your earnings. Lincoln Financial will review your claim to determine if you qualify for benefits. If you qualify, your STD leave will extend for a maximum of 90 days or until you return to work, whichever happens first. Your benefits are paid through Inframark payroll and will be offset by any state disability payments, as well as any other applicable taxes or payroll deductions. During the first 14 days of STD time, you may use accrued sick or vacation days if you wish to be paid. Between the 15th and 90th days of STD time, you are eligible for the STD benefit explained above. You may supplement your STD pay with any available sick or vacation time. After 90 days, you may be eligible for Long-Term Disability benefits. This coverage is 100% company-paid.
Long-Term Disability (LTD) Insurance
Benefits begin after you have been disabled for a total of 90 calendar days. Inframark automatically provides you with basic coverage of 50% of your monthly salary to a maximum of $10,000/month.
You also have the ability to purchase supplemental LTD coverage that increases your benefit to 60%.
Under IRS rules, you must pay income taxes either on the value of the premiums paid to the insurance company today or on the value of actual benefit payments received in the future. You can choose to either:
- Pay no taxes now on the value of your LTD coverage; then pay taxes only if you collect an LTD benefit in the future; or
- Pay taxes now on the value of LTD premiums paid by Inframark. With this option, additional taxes will be withheld from each pay check to cover the expected tax on the value of coverage. You would then pay no taxes if you collect an LTD benefit in the future. (You can keep more of your benefit if you are disabled.) This option will be applied by default unless you take action to opt out. Your election can only be changed once a year. Click on the link to the right to find out why this can be such an important financial advantage to you.
The information provided above is only a brief description of the coverage for each plan. Full terms and conditions, including important exclusions are contained in the Summary Plan Description or Group Insurance Certificate, available by logging on to the Employee Benefits Service Center or by calling the Benefits InfoLine at +1 866 545 3756.