LTD Question

APAllen

I have an ee who is currently out on STD and FMLA. Both are scheduled to expire this month. He has medical documentation which prevents him from returning to work in any capacity. He is terminally ill. He has qualified for LTD through Prudential. I have advised him that we are going to terminate his employment with us because he is unable to perform his current job duties and/or continue to work for the company in any capacity. I explained that upon his termination, a COBRA letter will be sent and he will, according to Prudential, begin receiving LTD benefits.

Question: Am I ok in terminating his employment with the company?

Betty I_O

If your policy is to terminate after the twelve weeks of FMLA expire without an employee returning to work, you can terminate the employee. The employee's personal situation concerning LTD benefits will not be affected; the disability began prior to the termination, and your carrier (Prudential)will contiue to work with the employee relative to the LTD claim. Since this employee is disabled at the time you offer COBRA, you need to make him/her aware that an 11-month extension would be available if he/she still is disabled after the initial 18-months of continuation coverage.

APAllen

Ok. Yes, our policy allows for this type of termination and I have communicated it to the employee along with the events that will take place if they were unable to return to work.

I will, however, make sure I advise the employee about the 11 month COBRA extension as I was unaware of that. Thank you.

Pearce

Be aware that the 11 month extension is not automatic and the employee must be (unless your health plan is more generous than COBRA law) disabled according to the Social Security Administration at the time of the COBRA qualifying event or within 60 days after the event, and a copy of that written acceptance by SSA must be presented to the health plan before the end of the initial 18 month period.

LBL

We have not terminated in this situation so the employee can keep the group term life insurance.