Academic Affairs Manual (ACD)

Effective: 8/15/1985

Revised: 3/1/2006

ACD 601–05: Short-Term Disability Insurance

Purpose

To provide eligible faculty and academic professionals with short-term disability insurance

Sources

Internal Revenue Code § 125

Arizona Board of Regents Policy Manual - 6–604

University policy

Applicability

Faculty and academic professionals who:

1. are employed to work 20 hours per week (50 percent FTE) or more for a continuous period of six or more months

   and

2. are qualified to participate in and are making contributions to an approved state or optional retirement program unless exempted by law.

Policy

Eligible faculty and academic professionals may purchase short-term disability insurance that may include accidental death and dismemberment coverage. This program will provide a faculty member or academic professional with an income in the event of disability. Accidental death and dismemberment coverage protects the faculty member or academic professional in the event of the permanent loss of a limb or sight.

Short-term disability insurance will pay a fixed percentage of the employee’s salary for a period up to six months. This percentage will be 66 2/3 or 70 percent, depending upon the plan selected by the employee.

Faculty members and academic professionals may exercise the option to pay for short-term disability premiums on a post-tax basis. If benefits are paid, they are not subject to federal or state taxes.

Faculty members and academic professionals who do not elect to have short-term disability coverage at hire and then elect it at a later open enrollment period may be subject to pre-existing condition limits or additional waiting periods.

Note:

Family leave (ACD 702–03, “Family Leave”) is not an additional leave; rather, it is to be used concurrently with this policy.

Procedure

The faculty member or academic professional notifies the chair or director of the impending claim of short-term disability. The chair or director initiates the leave without pay when appropriate and refers the faculty member or academic professional to Human Resources. Human Resources processes the appropriate forms to establish disability status.

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