Could you pay your bills if an illness or injury prevented you from working? Disability benefits can help.
Disability benefits are administered by The Hartford.
Short-Term Disability (STD)
STD benefits replace a portion of your income if you’re unable to work due to pregnancy, illness, or non-work-related injury.
Steelcase automatically provides STD coverage for you free of charge. Steelcase provides a basic weekly disability benefit (70% of base pay) free of charge to hourly and non-exempt salaried employees who are off work for nonoccupational reasons. The benefit for non-exempt employees is paid after any banked sick time is exhausted. Benefits can continue for up to 26 weeks. Exempt salaried employees are eligible for salary continuation for up to 26 weeks.
Long-Term Disability (LTD)
LTD benefits pick up where your STD benefits end—providing you with a portion of your income.
The amount you receive will be reduced by income from other sources, including Social Security, workers’ compensation, no-fault auto insurance, and other group or government benefits.
You have the option to purchase LTD coverage, at either 50% income replacement (maximum $5,000 monthly) or 60% income replacement (maximum $25,000 monthly). If you elect LTD coverage, the cost will be deducted from your paycheck using after-tax dollars. LTD monthly benefits are payable based on your monthly average Medicare-taxable earnings for the prior three calendar years.
– 50% level: The maximum duration of benefits is 60 months. The benefit continues until you are no longer disabled or the maximum duration is reached.
–60% level: The benefit continues until you are no longer disabled or you reach Social Security Normal Retirement Age, whichever is sooner.
Things to Consider
When deciding whether to enroll in LTD coverage, be sure to consider the following:
Cost per Paycheck
The cost of disability coverage is based on the level of coverage you elect. You’ll be able to see the cost per paycheck when you enroll.
Other Income Sources
If you were unable to work, would other sources of income be available to you, such as sick pay, salary continuance, a short-term state disability plan, or Social Security? If so, consider whether you would have enough money to pay your ongoing expenses for a period of time.
Taxes
Disability benefits may be taxable as ordinary income. That means federal and state income taxes will be deducted from disability benefit checks. When choosing a disability coverage level, be aware that taxes may affect the dollar amount of your benefit.