Group Long-Term Disability Plans

CalCPA Health offers Group Long-Term Disability (LTD) insurance through Lincoln Financial Group which provides employees with the financial security needed if they become disabled. CalCPA member firms benefit from a variety of value added services in addition to the quality disability plan designs available.

LTD

CalCPA Health LTD Highlights

  • True Group LTD employee coverage available for groups of 2 or more lives
  • Own occupation definition to end of benefit period for CPAs, 24 months for all others
  • Discounted rates for CalCPA members
  • Excellent claims paying history with CalCPA Health
  • Accumulation of elimination period
  • Liberal definition of earnings
  • Progressive partial disability benefit with return to work incentive
  • Vocational rehab benefit
  • Reasonable accommodation benefit
  • “Zero-Day” residual
  • Benefits payable until Social Security Normal Retirement Age
  • Gross-up options available
  • CPA’s receive Own Occupation period to Social Security Normal Retirement Age (SSNRA)
  • Monthly benefit maximum up to $15,000 for groups over 25 lives, subject to underwriting approval
  • Choice of income replacement levels designed to help maintain current financial lifestyles with minimal impact
  • Options for benefit duration and elimination periods
  • EmployeeConnect Services with four face-to-face visits

Value Added Services Included with LTD Plans

EmployeeConnect services provides employees and their immediate family members access to confidential assistance, referrals and resources – including 24/7 toll-free phone and web access, and unlimited phone access to legal, financial and work-life services. Assistance is available on such topics as:

  • Anxiety and depression
  • Marital or family difficulties
  • Stress management
  • Substance abuse
  • Locating child or elder care
  • Relocation assistance (find local movers)

To Enroll

Firms with 2 – 9 employees
Firms must complete a 2018 CalCPA Health Subscription Agreement and each employee must complete an Employee Enrollment form. Employees of firms with 2-3 employees must also complete a Health Statement. For assistance, contact: Banyan Administrators – Managers for the CalCPA Health Programs (877) 480-7923.

Firms with 10+ employees
Contact: Hover & Hessel LLC (800) 805-9480.

Benefit Options

Option 1

The monthly benefit is 60% of the eligible employee’s monthly rate of basic earnings, less other benefits, up to a maximum of $6,000 per month.

Option 2

The monthly benefit is 60% of the eligible employee’s monthly rate of basic earnings, less other benefits, up to a maximum of $10,000 per month.

The minimum monthly benefit will be the greater of $100 or 10% of the eligible employee’s monthly income loss.

Monthly Rate of Basic Earnings – Non-CPA’s

Monthly Rate of Basic Earnings means the eligible employee’s regular monthly rate of pay, including bonuses and commissions averaged over the prior 12 months, excluding both overtime, and any additional compensation; not to exceed the pay reported by the employer to Banyan Administrators (groups of 2-9 employees) or Hover Insurance Services, Inc. (groups of 10 or more).

Monthly Rate of Basic Earnings

Monthly Rate of Basic Earnings means the eligible employee’s regular monthly rate of pay, including bonuses and commissions averaged over the prior 12 months, excluding both overtime, and any additional compensation; not to exceed the pay reported by the employer to Banyan Administrators (groups of 2-9 employees) or Hover Insurance Services, Inc. (groups of 10 or more).

When Are Benefits Payable

Monthly benefits are payable if the eligible employee is disabled while covered under the policy through and beyond the 180-day elimination period, is under the regular care of a physician during and beyond the 180-day elimination period, and provides proof of loss to Lincoln Financial Group. Benefits accrue and are paid monthly.

Benefits for Mental Illness and Substance Abuse

Monthly benefits for disability resulting from mental illness or substance abuse are payable for up to a period of 24 months for any one period of disability, unless hospital confined.

Eligibility

Employer Eligibility

Group Long-Term Disability coverage from Lincoln Financial Group is available to accounting firms in public practice. To be eligible and retain such eligibility, more than 50% of all the Employer’s owners (i.e., principals, proprietors, partners, shareholders or other owners) must be CPAs or Associate members of CalCPA in good standing. All employers deemed to be part of an affiliated group under Internal Revenue Code Sections 414(b), (c), or (m) are considered to be a single employer.

Firms consisting of 4 or more eligible persons working at least 30 hours per week may be eligible for guaranteed coverage.

Employee Eligibility

Active, regular full-time Certified Public Accountants of the California Society of CPAs and their eligible employees working at least 30 hours per week are eligible for coverage.

Dependent Eligibility

Dependents are not eligible for coverage.

Participation Requirements

100% of active, regular full-time employees working at least 30 hours per week must be covered.

For additional information

Firms with 2- 9 employees:
Contact: Banyan Administrators – Managers for the CalCPA Health Programs (877) 480-7923

Firms with 10+ employees
Contact: Hover & Hessel LLC (800) 805-9480

Monthly Premium Rates

To date, Lincoln Financial has been able to provide CalCPA member groups of 10 or more currently enrolled in a group long-term disability plan, with a minimum savings of 15% over their current group LTD plan rates. (Savings amounts vary and are not guaranteed). Please note that all information provided is a summary for illustration purposes and refer to plan document for specific details.

The following rates are guaranteed through September 2018 (for Option 1 or 2).

 Monthly Rates  Monthly Rates  Monthly Rates
Age Band 2 – 24 lives 25 to 49 lives 50 lives or greater
<30 0.065 0.059 0.053
30-34 0.114 0.103 0.094
35-39 0.135 0.120 0.109
40-44 0.229 0.205 0.185
45-49 0.270 0.241 0.217
50-54 0.493 0.443 0.399
55-59 0.587 0.528 0.475
60-64 0.801 0.722 0.648
65-69 0.836 0.751 0.678
70+ 1.332 1.200 1.079

For additional information

Firms with 2- 9 employees
Contact: Banyan Administrators– Managers for the CalCPA Health Programs (877) 480-7923

Firms with 10+ employees
Contact: Hover & Hessel LLC (800) 805-9480

Definitions

Definition of Disability – CPA’s

An eligible employee will be considered disabled during the 180-day elimination period and until the end of the benefit period if, because of injury, sickness, mental illness, substance abuse, or pregnancy, they are unable to perform the duties of their own occupation and as a result, are earnings less than 99% of their monthly rate of basic earnings.

Definition of Disability – Non-CPA’s

An eligible employee will be considered disabled during the 180-day elimination period and the first 24 monthly benefits if, because of injury, sickness, mental illness, substance abuse, or pregnancy, they are unable to perform the duties of their own occupation and as a result, are earnings less than 85% of their monthly rate of basic earnings. After monthly benefits have been paid for 24 months, eligible employees will be considered disabled only if they are unable to perform the essential duties of any occupation with an earnings potential equal to or greater than their monthly benefit and for which they are, or could become, qualified based on education, training, or experience.

Return to Work Incentive

During the benefit period, current earnings will reduce the monthly benefit only to the extent that current earnings, other benefits, and the monthly benefit do not exceed 100% of the eligible employee’s monthly rate of basic earnings. “Other benefits” include statutory benefits, workers’ compensation, Social Security, sick pay, and salary continuation.

Gross up

Employer-paid premium is on a pre-tax basis, meaning that no taxes are paid on the disability premium.  The result is a disability benefit that is taxed, and therefore reduced. Employers wanting to provide a non-taxed benefit for their employees utilize a post-tax premium payment method, generally referred to as a “gross-up’ plan.  In this scenario, the employer adds the disability premium to all employees’ gross salaries and deducts the disability premium on a post-tax basis.  The result is a taxable premium and an untaxed benefit.