Short-Term Disability (STD)
The company provides STD coverage to employees at no cost after a 30-day waiting period from the date of hire. STD is effective after an elimination period of zero (0) days due to accident or seven (7) days due to illness. However, employees must be off work 8 consecutive days before a benefit is paid. After the elimination period, this 26-week coverage will provide you with a weekly income benefit if you are unable to work. You are automatically enrolled; no action from you is required.
- Salary employees receive 100% or 66.67% of weekly salary depending upon length of service.
- Hourly employees receive 60% of salary to a weekly maximum of $500.
Hourly employees can also buy individual short-term disability to supplement the STD benefit provided by Myers. For more information, please download “Individual Short-Term Disability” flyer, located in the Resource box on this page.
Long-Term Disability (LTD)
After one year of service, the company provides LTD coverage to employees at no cost. This benefit is provided to you if you meet the definition of disability as defined by the plan. This plan provides a 40% income replacement benefit, with a maximum monthly benefit of $1,000.
An optional 60% benefit, with a maximum monthly benefit of $10,000, is available if you would like to purchase a higher level of coverage through Long Term Disability Buy-Up.
Resources
Carrier:Unum
Customer Service:
1-866-679-3054
Website: www.unum.com
How the coverage works:
- Pre-existing limitations will apply if you have a health condition that may disable you prior to your effective date, or if you buy up to the 60% LTD option after your initial LTD enrollment. (Please read the Summary of Coverage for additional information.)
- Depending on the coverage option you select, LTD pays a monthly benefit equal to: 40% of your pay with a maximum monthly benefit of$1,000, or 60% of your pay with a maximum monthly benefit of $10,000.
- Your LTD benefit is reduced by any other disability benefits you are eligible to receive, such as Social Security
- Your ‘pay’ for the purposes of this plan is your base pay, no overtime
- Your monthly LTD benefit will continue until you no longer meet the definition of a disability or reach the maximum benefit period. This will be defined in your certificate of coverage.
Your company-paid Basic Life Insurance and AD&D and your employee paid Optional Life, Dependent Life and Voluntary AD&D benefits will continue while you are on leave until the end of the month following the month in which the leave begins. However, while on leave, you are responsible for paying your payroll contributions to Human Resources.
Long-Term Disability (LTD) Buy-up Option
Employees of Myers are also able to increase their LTD coverage by opting into the Buy-up Coverage. This coverage will increase your benefit to 60% of your monthly earnings to a maximum of $10,000.
Instructions to Calculate LTD Buy-Up Payroll Deduction
Base Cost (Employer paid)
Take your annual salary or $30,0001, whichever is lower, and divide it by 12 to get a monthly salary. Then, take your monthly salary and multiply by the base rate (.10) then divide by 100. Take this number and multiply by 12 to get an annual amount. Divide the annual amount by 52 weeks if you are paid weekly, or 26 weeks if you are paid bi-weekly. This is the amount Myers pays for your base benefit each pay period.
Buy-Up Cost (Employee paid)
Take your annual salary or $200,0002, whichever is lower, and divide it by 12 to get a monthly salary. Then, take your monthly salary and multiply this number by the buy-up rate (.415 or .72) then divide by 100. Take this number and multiply by 12 to get an annual amount. Divide the annual amount by 52 if you are paid weekly, or 26 if you are paid bi-weekly. Finally, subtract the employer paid base cost from the buy-up cost to arrive at your actual payroll deducton for the buy-up coverage.
Note: Rates are different for hourly and salary employees.
Hourly Example
| Assumptions: | ||
| Annual Salary | = | $25,000 |
| Divide by 12 | = | 2,083.33 |
| Rate .10 | = | 208.33 |
| Divide by 100 | = | 2.08 |
| Annual (times 12) | = | 25.00 |
| Divide by 52 | = | .48 |
| Buy Up | ||
| Annual Salary | = | $25,000 |
| Divide by 12 | = | 2,083.33 |
| Rate .415 | = | 864.58 |
| Divide by 100 | = | 8.64 |
| Annual (times 12) | = | 103.68 |
| Divide by 52 | = | 1.99 |
Base Cost:
$2083.33 x.10 / 100 *12 / 52 = $0.48
Buy-Up Cost:
$2083.33 x .41/ 100 *12 / 52 = $1.99
Employee Cost:
$1.99 – $0.48 = $1.51 per week
Salary Example
| Assumptions: | ||
| Annual Salary | = | $25,000 |
| Divide by 12 | = | 2,083.33 |
| Rate .10 | = | 208.33 |
| Divide by 100 | = | 2.08 |
| Annual (times 12) | = | 25.00 |
| Divide by 52 | = | .48 |
| Buy Up | ||
| Annual Salary | = | $25,000 |
| Divide by 12 | = | 2,083.33 |
| Rate .72 | = | 1,500 |
| Divide by 100 | = | 15.00 |
| Annual (times 12) | = | 180.00 |
| Divide by 52 | = | 3.46 |
Base Cost:
$2083.33 x.10 / 100 *12 / 52 = $0.48
Buy-Up Cost:
$2083.33 x .72 / 100 *12 / 52 = $3.46
Employee Cost:
$3.46 – $0.48 = $2.98 per week
1If an employee earns more than $30,000 annually, their formula will be capped at $30,000 because the monthly maximum benefit / payment is $1,000.
2If an employee earns more than $200,000 annually, their buy-up formula will be capped at $200,000 because the monthly maximum benefit / payment is $10,000.
If you are a participant in the medical, dental, and/or vision plans, Myers Industries may continue your health insurance coverage while you are on leave. However, while on leave, you are responsible for paying your payroll contributions to Human Resources. Your coverage will lapse if you fall 30 days behind in your payment.
