MMC Benefits Handbook
How the Plan Works
The Long Term Disability Bonus Income Plan provides for an additional level of income replacement if you elect this coverage and qualify for benefits under the Basic Long Term Disability Plan and the Optional Long Term Disability Plan. Approved benefits begin to be paid on the seventh month of disability.
You must qualify and elect benefit coverage under the Basic Long Term Disability Plan and the Optional Long Term Disability Plan to be considered for benefits under this Plan. The Company provides you with basic disability coverage and you can chose to purchase this additional coverage.
The Plan offers two coverage options: a 50% option and a 100% option. If you are approved to receive the Long Term Disability Bonus Income benefit, the Plan provides you with a monthly benefit of 60% of your covered benefit amount, up to a maximum of $15,000 per month.
The covered benefit amount is determined by applying the coverage option percentage to your eligible bonus. The 100% covered benefit amount coverage option is subject to a maximum covered benefit amount of $300,000. The 50% coverage option is subject to a minimum covered benefit amount of $50,000 and a maximum of $150,000.
The following chart illustrates how your Long Term Disability Bonus Income Plan benefit is determined.
If your eligible bonus is:
And you may choose from these coverage options:
Your covered benefit amount is:
Your annual Long Term Disability Bonus Income Plan benefit payment is:
$5,000 to $50,000
100% of eligible bonus
100% of your eligible bonus
60% of your covered benefit amount (maximum $15,000 per month)
$50,001 to $300,000
100% of eligible bonus
50% of eligible bonus
100% of eligible bonus
50% of eligible bonus (minimum of $50,000)
60% of your covered benefit amount (maximum $15,000 per month)
More than $300,000
100% of eligible bonus
50% of eligible bonus
100% of eligible bonus (maximum of $300,000)
50% of eligible bonus (maximum of $150,000)
60% of your covered benefit amount (maximum $15,000 per month)
For example, if your eligible bonus is $30,000 and you elect:
  • the 100% coverage option, your covered benefit amount would be $30,000 and your Long Term Disability Bonus Income Plan annual benefit payment would be $18,000 ($30,000 × 60%).
As another example, if your eligible bonus is $80,000 and you elect:
  • the 100% coverage option, your covered benefit amount would be $80,000 and your Long Term Disability Bonus Income Plan annual benefit payment would be $48,000 ($80,000 × 60%).
  • the 50% coverage option, your covered benefit amount would be $50,000 (minimum covered benefit amount) and your Long Term Disability Bonus Income Plan annual benefit payment would be $30,000 ($50,000 × 60%).