Long Term Disability


Regular full-time faculty and staff are eligible to enroll in the Long-Term Disability (LTD) insurance. If, as a newly eligible full-time employee, you choose to enroll in the LTD plan, your coverage begins on the first day of employment or on the date that you complete the on-line enrollment process, whichever is later.

This program is administered by Unum. It provides you and your family with protection from loss of your income, should you become unable to work because of an accident, illness or injury. The Annuity Premium Benefit (APB) protects ongoing contributions to your retirement plan in the event of your disability.

While you may enroll at a later date, you will be required to provide proof of good health, and your acceptance will not be guaranteed.

Some important things to note:

  • After six-months, the LTD plan continues 60% of your monthly base salary up to $5,000 per month
  • LTD benefits are not subject to federal income tax when they are received
  • To qualify for LTD benefits, you must be certified as totally disabled by a physician and meet the other requirements of the plan
  • Your LTD benefit is reduced by any disability income you receive from other sources, such as State Employees' Retirement System disability benefits, Social Security or Workers' Compensation

For further details regarding Long-Term Disability insurance, read the summary of coverage from Prudential.


Your premiums are determined by your gross salary and by whether you choose only the long-term disability coverage, or you elect to include the annuity premium benefit (APB) as well. To help determine your cost for coverage, we have provided a Long Term Disability Rate Sheet, which shows a table of pre-calculated costs based on income. You may also use the formulas below:

Premium Formula
Coverage Formula
Long-Term Disability Annual Salary x 0.00249, divided by # of pays in a year
Long-Term Disability & Annuity Premium Benefit Annual Salary x 0.00367, divided by # of pays in a year

Annuity Premium Benefit

This is an optional coverage that is available with the LTD program. If you become disabled and qualify for long-term disability payments, the Annuity Premium Benefit (APB) would continue contributions to a retirement plan for you.

The contribution will be equal to 14.29% of your pre-disability income and is available to participants in both the State Employee's Retirement System (SERS) and the TIAA retirement plans.

Conversion of Coverage

When you end your employment with Penn State due to termination, you may convert your long-term disability coverage to an individual policy. You must have been covered for at least 12 consecutive months under the policy to be eligible.  To do so, complete the conversion form below within 60 days following the date of termination.