MMC Benefits Handbook
Cost of Coverage
If you elect Optional Long Term Disability coverage, you pay the full cost for coverage.
Age as of prior December 1st
Contribution as a % of Monthly Pre-Disability Earnings per semi-monthly paycheck
Contribution as a % of Monthly Pre-Disability Earnings per weekly paycheck
Under 25
0.0241%
0.0111%
25 to 29
0.0301%
0.0139%
30 to 34
0.0361%
0.0167%
35 to 39
0.0602%
0.0278%
40 to 44
0.0783%
0.0361%
45 to 49
0.1144%
0.0528%
50 to 54
0.1445%
0.0667%
55 to 59
0.1806%
0.0833%
60 and older
0.1866%
0.0861%
Cost Calculation Example:
If your eligible pre-disability earnings are $45,000 and you are age 37, your cost is:
  • $45,000 ÷ 12 months = $3,750 × 0.0602% = $2.26 per semi-monthly paycheck
  • $45,000 ÷ 12 months = $3,750 × 0.0278% = $1.04 per weekly paycheck
Will my cost for coverage increase as I get older?
The cost of your Optional Long Term Disability Plan coverage is based on your age. As you get older, the incidence of disabilities increases, and the cost of providing coverage increases. Accordingly, your cost increases.
When will my cost change?
Because this benefit is based on your pre-disability earnings (annual base salary excluding overtime, bonuses, commission and other extra compensation) and your age, your cost and your coverage will change when your pay changes. Generally, these changes may occur each January 1.
The Company reserves the right to change the amount you are required to contribute at any time.
Taxes
Do I pay for coverage with before-tax or after-tax dollars?
You pay for your Optional Long Term Disability Plan with after-tax dollars which are deducted from your paycheck.
Do I pay taxes on the long term disability payments I receive?
Your optional long term disability benefit is not taxable.