The Group Long Term Disability (LTD) Insurance Program was implemented in 1988 for active excluded employees. This benefit is intended to provide income protection in the event an employee becomes disabled due to an illness or injury and is unable to work for six months or longer.
The employee's premium is based on age, plan option, and an 80 cent administrative fee.
The Standard Insurance is the current LTD vendor.
Authority
Government Code Section 19849.11
902. Eligibility
Active excluded employees appointed permanent, half-time or greater, with one of the following designations are eligible to enroll in LTD:
- Managerial (M, E50, E59, E79, E99)
- Supervisory (S, E48, E58, E68, E78, E98)
- Confidential (C, E97)
- Constitutional officers (other than legislative members) (E92)
- Excluded/Exempt (E88, E89)
- Excluded employees who are enrolled in LTD at the time they are re-designated to E01 through E21, E67, or E77 due to middle management reductions are allowed to continue the coverage.
- However, future incumbents appointed to these positions will be designated represented and are not eligible for LTD.
Employees on limited-term appointments who otherwise meet the eligibility criteria may enroll in LTD only if they have a mandatory right of return to a position and status that also meet the criteria.
Not Eligible
Represented (rank and file) employees are not eligible to enroll. However, they can contact their union to determine if there are any union-sponsored disability benefits available to them
903. Notification
LTD Open Enrollment is held annually during the fall.
The department personnel office is responsible for notifying active eligible employees of the LTD Program. An eligible employee who is out on a leave of absence and returns may be eligible to enroll within 60 days.
Open Enrollment Notification from Standard Insurance for Eligible Employees
Eligible employees NOT currently enrolled in LTD
For Open Enrollment, Standard Insurance will mail out notices to employees who are not currently enrolled about the opportunity to enroll in LTD. A second notification will be mailed to provide more information on how to enroll, and a final reminder postcard will be mailed to remind employees that the Open Enrollment period will be ending.
Employees currently enrolled in LTD
For Open Enrollment, Standard Insurance will mail out notices to notify employees who are currently enrolled about the opportunity to make changes to their current coverage.
Newly Hired or Newly Eligible
Departmental personnel offices are responsible for notifying newly hired and newly eligible employees of the opportunity to enroll in LTD within the first 60 days of eligibility. The notice must specify the 60-day enrollment eligibility period and how to enroll into LTD. A copy of the notice should be kept in the employee's personnel file to verify the employee has been informed of the LTD benefit and enrollment period.
904. How to Enroll
Employees are encouraged to enroll online. Should the departmental personnel office receive an enrollment form, the departmental personnel office should direct the employee to the “How to Enroll" section on the
CalHR Group LTD state employee webpage for information on how to enroll online at
Standard Insurance and return the form back to the employee.
Please see below for exceptions.
Military Department - Military Active State Employees Only
Due to their basic allowance for housing (BAH) and basic allowance for subsistence (BAS), active military personnel are not eligible to enroll online and must enroll using an enrollment form.
The employee may request an enrollment form by contacting Standard Insurance at (971) 321-8150 or by sending an email to
socltdforms@standard.com. You may also request an enrollment form by contacting CalHR at
ltd@calhr.ca.gov.
The employee can email or mail the completed form to Standard Insurance at the address listed in section 914 under - “Contact Information".
Direct Pay Departments - California Exposition & State Fairs and California Fairs Services Authority
Employees of the California Exposition & State Fairs and California Fairs Services Authority are not eligible to enroll online and must request an enrollment form by contacting Standard Insurance at (971) 321-8150 or by sending an email to
socltdforms@standard.com. Employees may also request an enrollment form by contacting CalHR at
ltd@calhr.ca.gov.
Employees must return the enrollment form to their departmental personnel office.
The departmental personnel offices are responsible for verifying that the employee is eligible to enroll in LTD and has accurately completed Section A, B, and C of the form.
The dearptmental personnel office must verify the employee's monthly base salary and calculations are accurate and complete section D.
Departmental personnel specialists must include the applicable remark below in the remarks section of the form:
- Newly Hired = Hire Date (MM/DD/YY)
- Newly Eligible = Effective Date (MM/DD/YY)
- Open Enrollment = Effective Date (MM/DD/YY)
The departmental personnel specialist shall email the form to
socltdforms@standard.com, provide a copy to their accounting office and retain a copy in the employee's official personnel file.
Do not send forms to the State Controller's Office (SCO).
905. Enrollment Opportunities
Open Enrollment
LTD Open Enrollment will be held in the fall.
Newly Hired or Newly Eligible Employees
Newly hired or newly eligible employees have 60 days from the date of eligibility to enroll in LTD. If the employee misses the 60 day eligibility period, they may enroll during the next Open Enrollment period, which will be conducted in the fall. Eligible employees may enroll online at Standard Insurance.
Newly Hired is defined as:
- New appointment to state service into an eligible classification.
Newly Eligible is defined as:
- New appointment to an eligible classification.
- Change in CBID from represented to non-represented (as defined in the eligibility criteria).
- Change from an ineligible time base to a half-time or greater time base in an eligible classification.
For information on how to enroll refer to section 904, “How to Enroll."
Do not send forms to SCO for processing.
906. Premium Computations
Premiums are calculated based on the employee's monthly base salary, age, and the plan option they select.
How to calculate the employee's monthly LTD premium:
Monthly base salary (x) age (plan option) (+) $0.80 administrative fee = monthly premium
907. Plan Options
Employees have two plan options to choose from based on their monthly base salary:
- Plan Option A - 65 percent of the first $15,385
- Plan Option B - 55 percent of the first $18,182
Example
Employee age 50 with monthly salary of $25,833
Plan Options
Employees have two plan options based on their monthly base salary to choose from: Plan Option A 55 percent of the first $18,182 Plan Option B 65 percent of the first $15,385 Example Employee, age 50, makes $25,833.33 per month
| Monthly Salary to Claim | $15,385 | $18,182 |
| *Age Factor | 0.00347 | 0.00175 |
| Plus $0.80 Admin Fee | $0.80 | $0.80 |
| Total Monthly Premium | $51.19 | $32.62 |
908. Plan Options and Rates
Plan Options and Rates – Through December 31, 2019 Option A – 65 Percent (075-111)
| UNDER AGE 30 | 0.00026 | 0.00012 |
| 30 – 39 | 0.00073 | 0.00037 |
| 40 – 49 | 0.00173 | 0.00087 |
| 50 – 59 |
0.00347 |
0.00175 |
| Over 60 |
0.00384 | 0.00195 |
909. Effective Date
Effective Date for Open Enrollment
Open Enrollment coverage will be effective January 1.
Effective Date for Newly Hired or Newly Eligible Employees
Enroll Online
- If the enrollment form is processed by the tenth day of the calendar month, coverage will be effective on the first day of the next calendar month.
- If the enrollment form is processed
after the tenth day of the calendar month, coverage will be effective on the first day of the second calendar month.
Enrollment Forms Emailed or Mailed to Standard Insurance
The enrollment form must be received by Standard Insurance by the end of the 60 day eligibility period. The effective date will be determined based on when the LTD form is received and the employee is enrolled by the Standard Insurance Account Representative.
Forms received after the 60 day eligibility period will be returned to the employee and the employee will be advised to enroll during the next Open Enrollment period.
Example
Hired January 1 (60 day eligibility period ends March 1)
Enrolled online January 1
Effective February 1
Premiums will be deducted from the January pay warrant
Hired January 1 (60 day eligibility period ends March 1)
Enrolled January 11
Effective March 1
Premiums will be deducted from the February pay warrant
Hired January 1 (60 day eligibility period ends March 1)
Enrolled March 2
Missed enrollment opportunity, must wait until Open Enrollment.
910. Premium Update
Age Category Increase
The employee's premium will increase on January 1 if their current age places them in a higher age category.
Example:
If the employee turned 50 in February, employee premium will increase the following January 1.
See Section 908 Plan Options and Rates for age categories.
Salary Increase
The employee's premium will increase whenever the employee has a salary increase. (e.g. merit salary adjustment or range change.)
911. Cancelation
Employees can cancel coverage anytime by logging into
Enroll Now or by contacting Standard Insurance.
Cancelation and Retirement for Employees of the California Exposition & State Fairs and California Fairs Services Authority
The employee must complete a new Enrollment Authorization form, check the “cancel box," and return the form to their department personnel office.
The departmental personnel offices are responsible for completing Section C of the form. Include “cancelation" in the remarks section of the form.
The departmental personnel office must email the form to
socltdforms@standard.com, provide a copy to their accounting office, and retain a copy in the employee's official personnel file.
Do not send forms to the State Controller's Office.
How to File a Claim
If employee is enrolled in LTD and will be out due to illness or injury for six months or longer, the departmental personnel specialist should contact Standard Insurance at (888) 641-7193 to start the employer process.
The departmental personnel specialist should advise the employee to contact Standard Insurance as soon as the employee is out on a disability or workers' compensation to start the process of filing a claim.
Standard Insurance will send the following documents to the employee:
- Cover letter with instructions on how to initiate the LTD claim process.
- State of California Long Term Disability Benefits Employee's Statement (SI13379-643146-EE).
- A postage-paid return envelope.
Standard Insurance will send the following documents to the employer:
- Cover letter with instructions on how to complete the LTD claim and requested documents.
- State of California Long Term Disability Employer's Statement (SI13379-643146-ER).
- A postage-paid return envelope.
Within five days of receiving the claim request, the department personnel office must complete the Employer's Statement, and provide a copy of the duty statement and three months of pay history prior to disability, up to the last day worked.
Mail completed forms to Standard Insurance at:
Standard Insurance Company
Attn: Employee Benefits Department
PO Box 2800
Portland, OR 97208-2800
Waiting Period
LTD has a six-month waiting period.
Premiums must be paid during the waiting period or until the claim has been approved. If premiums are not paid during the waiting period, the employee can lose the benefit.
Therefore, it is very important that the departmental personnel specialist notifies the employee to contact Standard Insurance when the employee goes out on a leave of absence or workers' compensation.
Claim Approved
Once the claim has been approved, benefit payments will be sent directly to the employee and the LTD premiums will be waived while the employee is receiving benefit payments.
If premiums were paid during the benefit approval period, Standard Insurance will send a refund directly to the employee.
Tax-Free Benefit Payment
Monthly LTD benefits received are non-taxable.
Return to Work
If the employee wishes to reinstate the voluntary automatic payroll deduction and continue coverage, and the employee is still eligible to re-enroll in LTD, the employee must contact Standard Insurance at (888) 641-7193, within ten days of returning to work to re-enroll.
The departmental personnel office should contact CalHR when an employee separates, transfers to a rank and file position, retires, is separated due to an adverse action, or at any time the employee may be off pay status and not receive a pay warrant.
In addition to contacting CalHR, the departmental personnel office should tell the employee to contact Standard Insurance should they wish to continue coverage since the automatic premium deductions will cease if the employee does not receive a pay warrant.
Retirement
LTD will cancel automatically the month the employee retires. The employee can cancel any time prior to retirement by contacting Standard Insurance.
There is no conversion privilege when employees retire.
Employee Transfers to a Rank-and-File Status
If an employee transfers to a rank and file represented classification, the employee may continue LTD coverage for 24 months through direct payments. The employee should contact Standard Insurance within 60 days of the date of loss of eligibility to arrange for direct payment of the premiums.
The employee can visit the Standard Insurance website and complete the Request for Long Term Disability 24 Month Direct Pay Coverage and return the form to the address listed, or the employee may contact Standard Insurance to request the form.
Employee Separates from State Service or Takes a Leave of Absence
If an employee separates from state service or takes a leave of absence, they may convert their LTD coverage to an individual disability plan provided they have been enrolled in LTD for at least 12 months and they are not disabled from performing the duties of their occupation at the time they separate or take a leave of absence. The employee should contact Standard Insurance within 31 days of separation or at the beginning of the leave of absence.
The employee can visit the Standard Insurance website, complete the Request for Long Term Disability Conversion Materials, and return the form to the address listed, or the employee may contact Standard Insurance.
Upon a return from a separation or a leave of absence, if the employee is still eligible and premiums were made while on a leave, the employee must contact Standard Insurance within five days if they wish to continue coverage with an automatic payroll deduction.
914. Contact Information
CalHR
Email:
LTD@CalHR.ca.gov
Fax: (855) 238-3276
Standard Insurance
900 SW 5th Avenue
Portland, OR 97204-9805
Email:
socltdforms@standard.com
Direct Customer Service Line: (971) 321-8150
Toll-Free Customer Service Line: (888) 641-7193
Hours of Operation: Monday 5:00 a.m. to 5:00 p.m. Pacific Time
915. Website Information
916. Forms
Excluded employees are encouraged to enroll online (exception: Active military and employees of California Exposition & State Fairs and California Fairs Services Authority should refer to section 904 “How to Enroll)."
