LTD for 90% and STD for 100% of multinational and local leading companies.
Plan Eligibility
LTD – All employees, although coverage for hourly paid staff is less common. STD – All employees.
Benefit Description
LTD – Paid after six months of disability and ceasing at retirement; 50% to 75% of pre-disability pay and, at the higher level, usually integrated with state benefits. Payments for a limited period only; for example, five years may be provided, and sometimes a lump-sum payment. Often DB plans provide some form of ill-health retirement pension based on augmented service and without reduction for early payment. STD – Salary continuation for salaried staff during sickness for up to six months, usually at 100%, reducing after a period that depends on service. For hourly paid employees, practice varies; most of the time they will receive statutory sick pay only.
Employee Contribution
None. AD&D – None.
Plan Financing
LTD – Insurance policy. STD – Self-funded.
Is Coverage Part of Another Plan?
LTD – No, though may be a rider to a DB retirement plan. STD – No. AD&D – Rider to life insurance.
