Short-Term Disability

STD provides a level of income replacement if you’re unable to work for up to 26 weeks. Coverage begins on the eighth consecutive day of a qualifying disability, or earlier if hospitalized.

The amount you receive is based on your length of service when your disability begins, see the chart below.

Long-Term Disability

If you’re a full-time employee, LTD provides 60% of your eligible monthly pay (up to $25,000 per month) if you’re unable to work for longer than 26 weeks.

• LTD payments start six-months from when your disability began. The amount of your LTD payments may be reduced by income you receive from other sources such as Workers’ Compensation or Social Security Disability Benefits.
• Your eligible pay is the base pay you were earning as of your last day of active work before your disability began, plus certain commissions you were paid in the 12-month period ending September 30 of the previous year, or since your date of hire if you are a new employee. The amount is calculated monthly.

Paying for LTD with after-tax payroll deductions

You can choose to pay for coverage yourself through after-tax payroll deductions, and any LTD benefits paid to you may not be subject to federal income or Social Security taxes (or, in most instances, state or local taxes). If AMCN covers the cost for LTD coverage, you’ll be taxed on any LTD benefits paid to you.

The cost to pay for LTD coverage on an after-tax basis is $0.425 for every $100 of 60% of your monthly eligible pay. For example, let’s say your monthly eligible pay is $1,000. 60% of $1,000 is $600, and 0.425 x 6 is $2.55. You would pay $2.55 per month (or $30.60 per year) for coverage.