Disability Insurance

DISABILITY INCOME INSURANCE PLANS
To help protect your income in the event of a disability, the State provides eligible employees with Short-Term Disability (STD) Insurance. Employees who regularly work at least 30 hours or more each week are eligible to enroll in Optional Long-Term Disability (LTD) Insurance on a voluntary basis. For the FY 2015-16 plan year both the STD and Optional LTD plans will be provided through the Unum Insurance Company.

Short-Term Disability (STD) Insurance 
The State provides most benefit eligible employees with short-term disability insurance which pays up to 60% of your weekly pre-disability income, up to a maximum STD weekly benefit payment of $2,310 per week, for up to 150 days during any 12 month period, following the required STD benefit waiting period which is 30 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 (LTD) Insurance 
Eligible employees who regularly work at least 30 hours or more each week can choose Optional Long-Term Disability (LTD) insurance, but must pay the entire premium each month. LTD premiums for FY 2015-16 are determined by salary, age and PERA Defined Benefit (DB) Retirement Plan vesting status. Optional LTD premiums are deducted from pay post-tax.

IMPORTANT—Guaranteed Acceptance for New Hires and during the FY 2015-16 Open Enrollment Period
If you elect to enroll in the Optional LTD Insurance plan as a new hire or during the FY 2015-16 open enrollment period you will automatically be enrolled into the Optional LTD insurance plan, without having to prove good health, with an effective date of July 1, 2015.
However, your Optional LTD 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 Optional LTD insurance would otherwise become effective. Your Optional LTD 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 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 that 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 2015–16 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 Premium Calculation
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 $7.20 per month (the age 42 PERA Vested premium rate is .0018, multiplied by monthly covered salary of $4,000 = $7.20 per month).


Disability Information

LTD Insurance Premiums 

STD and LTD Certificates of Coverage

STD Claim Forms

LTD Evidence of Insurability (EOI) Form 

Related Links 

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