MMC Benefits Handbook
Your payments under the Basic Long Term Disability Plan will begin after 26 weeks of an approved disability. Prior to this time, you may be able to receive benefit payments from:
However, there are exceptions to the normal payment period if:
The total combined amount received from the Basic Long Term Disability Plan, the Optional Long Term Disability Plan, rehabilitative or other employment, another employer's disability plan and any other income received as a result of your disability cannot be more than 100% of your monthly pre-disability earnings.
How is the benefit payment amount for the Plan calculated?
The benefit payment amount is calculated by multiplying your monthly pre-disability earnings times 40%. For example, if your monthly pre-disability earnings is $10,000 ($120,000 per year), your monthly benefit payment amount would be: $10,000 × 40% = $4,000 monthly benefit payment.
Your benefit payment may be reduced by other disability income benefits (as described in "Other Sources of Disability Benefits") and federal tax withholding.
Benefits Payment Method
Benefits are paid by the Claims Administrator monthly by the end of the month that benefits are due, by either check or direct deposit to a bank account you designate. Your first long term disability payment will be provided after you have been approved for disability by the Claims Administrator, no earlier than the end of the month that benefits are due. If you elect to receive your benefit payment by check, your benefit payment will be mailed to your home address.
How many benefit payments will I receive?
You will receive separate benefit payments for the Basic Long Term Disability Plan benefit and the Optional Long Term Disability Plan benefit, if you participate in Optional Long Term Disability. Additionally, you may receive up to one additional benefit payment if your eligible pre-disability earnings exceed the IRS Compensation Limit under Section 401(a)(17).
When do payments end?
Your payments will end on the first of the following to occur:
- the date you terminate employment
- the date you cease to be disabled (as determined by the Claims Administrator)
- the date you die
- the date you reach age 65 (if your birthday is on the first of the month. Otherwise, payments continue until the end of the month in which you reach age 65.), unless you become disabled on, or after, age 62 (see the "Benefit Schedule Based on Age" for details)
- the date you reach the 24-month limit for disabilities that are the result of mental health and/or substance abuse, if you become disabled on or after January 1, 2006
- the date you are no longer under the regular care of a physician or refuse the Claims Administrator's request to submit to an examination by a physician
- the date your current monthly earnings exceed 80% of your pre-disability earnings.
Payment Period Exceptions
There are exceptions to the normal payment period if:
Benefit Schedule Based on Age
How long are benefits paid if I become disabled on, or after, age 62?
If you become disabled on, or after, age 62, benefits will be paid according to this schedule (based on your age at the time you became disabled):
- age 62, benefits last for up to 3-1/2 years
- age 63, benefits last for up to 3 years
- age 64, benefits last for up to 2-1/2 years
- age 65, benefits last for up to 2 years
- age 66, benefits last for up to 1-3/4 years
- age 67, benefits last for up to 1-1/2 years
- age 68, benefits last for up to 1-1/4 years
- age 69 or older, benefits last for up to 1 year.
Non-assignment of Benefits
You cannot assign, pledge, borrow against or otherwise promise any benefit payable under the Benefits Program before you receive that benefit. In addition, your interest in the program is not subject to the claims of creditors.