Disability Insurance

Disability Income Insurance Plan Options

To help protect your income in the event of a disability, the State provides eligible employees with Short Term Disability (STD) Insurance and the option to purchase Optional Long-Term Disability (LTD) Insurance.

Both the STD and Optional LTD plans are provided through the Unum Insurance Company.

Unum Insurance Company

Short-Term Disability Insurance (STD)

The State provides most benefit eligible employees with Short-Term Disability Insurance which pays up to 60% of your weekly pre-disability covered compensation, up to a maximum STD weekly benefit payment of $3,000 per week, for up to 150 days during any 12 month period, following the required STD benefit waiting period which is 30 calendar days or until the end of all sick leave, whichever is longer. You are automatically enrolled into the Short-Term Disability Insurance plan and coverage is effective the first day of the month following your date of hire.

However, your STD insurance effective date will be delayed if you are not in active employment because of injury, sickness, temporary layoff, or leave of absence on the date that your STD insurance would otherwise become effective. Your STD insurance will become effective the first day of the month following your return to active employment.

What Disabilities Will Not Be Covered Under Your Unum STD Plan?
The Unum STD plan does not cover any disabilities caused by, contributed by, or resulting from the employee’s:

  • intentionally self-inflicted injuries
  • active participation in a riot
  • loss of a professional license, occupational license or certification
  • commission of a crime for which the insured has been convicted

STD Plan Exclusions

  • Your Unum STD plan will not cover a disability due to war, declared or undeclared, or any act of war.
  • Your Unum STD plan will not pay a benefit for any period of disability during which the insured is incarcerated.

Taxation of STD Benefits
Internal Revenue Code (IRC) Section 105 indicates that STD benefits, as sick pay, are to be included in the gross income of employees if the employer pays part or all of the premium for the STD coverage. In these situations, the STD disability benefits received by the employee are subject to federal taxation. The State of Colorado pays the entire STD insurance premium which means that the STD benefits received are 100 percent taxable to the employee.

PERA Defined Benefit Vested Employee & Unum Short-Term Disability (STD)

Employees with at least five years of PERA Defined Benefit (DB) Retirement Plan covered employment service may be eligible for PERA STD benefits. The Unum STD insurance coverage will always coordinate with an employee’s PERA STD coverage. The PERA STD benefits will always be the primary STD benefits and will be an offset to Unum’s STD benefits.

Optional Long-Term Disability Insurance (LTD)

Employees who regularly work at least 30 hours or more each week are eligible to enroll in the Optional Long-Term Disability Insurance plan. The Optional Long-Term Disability Insurance plan pays up to 60% of your monthly pre-disability covered compensation, up to a maximum monthly benefit of $10,000 per month, following the required LTD benefit waiting period of six months.

The maximum LTD period of payment is as follows:

Age at Disability Maximum LTD Period of Payment
Age 61 or younger To age 65, or 3 years 6 months if longer
Age 62 3 years, 6months
Age 63 3 years
Age 64 2 years, 6 months
Age 65 2 years
Age 66 1 year, 9 months
Age 67 1 year, 6 months
Age 68 1 year, 3 months
Age 69 or older 1 year

Pre-Existing Conditions
Optional Long-Term Disability Insurance does not cover pre-existing conditions. You have a pre-existing condition if you received medical treatment, consultation, care or services including diagnostic measures, or took prescribed drugs or medicines in the three months just prior to the effective date of Optional Long-Term Disability coverage and your disability begins in the first 12 months after your effective date of Optional Long-Term Disability coverage.

Open Enrollment
If you elect to enroll in the Optional Long-Term Disability Insurance plan during FY 2018-19 Open Enrollment, you need to provide proof of good health (medical evidence of insurability) to Unum. Unum will review your medical information and either approve or decline your benefit election. If you are approved for coverage on or before June 30, 2018, your effective date for coverage will be July 1, 2018. Benefits can pay until age 65. Premiums are determined by salary, age and PERA Defined Benefit (DB) Retirement Plan vesting status and are deducted from pay post-tax.

IMPORTANT—Guaranteed Acceptance for New Hires
If you elect to enroll in the Optional LTD Insurance plan as a new hire you will automatically be enrolled into the Optional LTD insurance plan without having to prove good health. Your Optional LTD insurance will become effective the first day of the month following your date of hire.

What Disabilities Will Not Be Covered Under Your Unum Optional LTD Plan
Your Unum Optional LTD plan does not cover any disabilities caused by, contributed by, or resulting from the employee’s:

  • intentionally self-inflicted injuries
  • active participation in a riot
  • loss of a professional license, occupational license or certification
  • commission of a crime for which the insured has been convicted
  • pre-existing condition

What is a Pre-Existing Condition? The employee has a pre-existing condition if:

  • the employee received medical treatment, consultation, care or services including diagnostic measures, or took prescribed drugs or medicines in the 3 months just prior to the employee’s effective date of Optional LTD coverage; and
  • the employee’s disability begins in the first 12 months after the employee’s effective date of Optional LTD coverage.

Optional LTD Plan Exclusions

  • Your Unum Optional LTD plan will not cover a disability due to war, declared or undeclared, or any act of war.
  • Your Unum Optional LTD plan will not pay a benefit for any period of disability during which the insured is incarcerated.

Taxation of Optional LTD Benefits
The employee’s Optional LTD benefits are not subject to federal taxation because an employee pays 100% of the Optional LTD premium on a post-tax basis which means the Optional LTD benefits are not included in the gross income of the employee.

PERA Defined Benefit Vested Employee & Unum Optional Long-Term Disability (LTD)
Employees with at least five years of PERA Defined Benefit (DB) Retirement Plan covered employment service may be eligible for PERA Disability benefits. The Unum Optional LTD insurance coverage will always coordinate with an employee’s PERA Disability coverage. The PERA Disability benefits will always be the primary Disability benefits and will be an offset to Unum’s Optional LTD benefits.

FY 2018–19 Optional LTD Insurance—Monthly Premium Rates
Monthly premium rate is a percentage of an employee’s monthly covered compensation. Rates can be found in the Disability Information section below.

Example of Optional LTD Premium Calculation for FY 2018-19
If you are vested in the PERA Defined Benefit (DB) Retirement Plan, age 42, with a monthly covered salary of $4,000, your monthly premium would be $6.00 per month (the age 42 PERA Vested premium rate is .0015, multiplied by monthly covered salary of $4,000 = $6.00 per month).

Disability Information

Optional LTD Insurance Premiums

STD Certificates of Coverage

Optional LTD Certificates of Coverage

STD Claim Forms

Optional LTD Evidence of Insurability (EOI) Form

Related Links

Send an email to state_benefits@state.co.us to ask a benefits question anytime.