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A disabling injury or illness that keeps you out of work could have
a devastating impact on your income, jeopardizing your ability to
cover normal household expenses. The federal government estimates
that 3 out of every 10 American workers will be disabled before
reaching retirement age.* With the right disability insurance, your
income is protected, relieving you of the anxiety of depleting your
savings to pay your bills.
PR&C offers Short-Term Disability (STD) and Long-Term
Disability (LTD) Insurance through Cigna to all full-time Team
Members. Your cost for Short-Term Disability & Long-Term
Disability is based on your age and income. Premiums are paid
through post-tax deductions.
Voluntary Short-Term Disability Insurance
Short-Term Disability insurance replaces a portion of your income if
an injury or illness forces you out of work for an extended period of time. Your benefit begins on the 8th day of injury
or illness and continues until recovery or 26 weeks, whichever is earlier. You will receive up to 40% of basic weekly
earnings to a $2,000 maximum benefit. This is in addition to the benefits you receive from the State of California (55%
of your pre-disability income).
Voluntary Long-Term Disability Insurance
PR&C also offers Long-Term Disability insurance to protect your finances when your disability continues beyond the
period covered by the Short-Term Disability plan. This benefit begins after 180 days, as long as you pay your premiums
by the last pay period before you go out on Long-Term Disability. Coverage continues until recovery or you reach the
maximum age of 65 (if you became disabled prior to age 62), whichever is earlier. If disabled after age 62, reductions in
the disability benefit period apply.
Disabilities caused by mental illness or substance are limited to a lifetime maximum of 24 months. You will receive
up to 60% of covered monthly earnings up to a $10,000 monthly maximum benefit. This includes tips, bonuses, and
commissions, but does not include overtime. Benefit is reduced by any amounts received from the State of California.
Pre-exiting conditions limitation applies (generally any condition that existed in the three months prior to plan coverage
is excluded if the disability begins during the first 12-months of LTD coverage). Evidence of good health is required
when enrolling in this benefit after your initial eligibility period.
* Social Security Administration, Fact Sheet, January 2007
Disability Insurance
Factors to Consider
Your income
When you're ill or injured, your out-of-pocket expenses and lost wages can have a devastating
impact on your family's financial well-being. Disability insurance can help cover these expenses
and make up for lost wages.
Your savings
Statistics show that many families today are living paycheck to paycheck. Without additional
financial protection, the added expenses due to a disability could deplete your savings very
quickly.
Your future
Without the security of your regular paycheck, it is difficult to set money aside for future
expenses like college tuition or retirement funding. With added disability insurance, you won't
have to give up your future plans as a result of an extended illness or injury.
