Group Disability Plans

Lincoln Financial Group Long-Term Disability (LTD) insurance gives employees the security of knowing that if they become disabled, replacement income is available to help carry them financially through that period without seriously affecting their present lifestyle.

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
  • Accumulation of elimination period
  • 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
  • Employee Assistance Plan with four face-to-face visits

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

To Enroll

Firms with 2- 9 employees
Firms must complete a Subscription Agreement and each employee must complete an Employee Enrollment form. Employees of firms with 2-3 employees must also complete a Health Statement.

Firms with 10+ employees
Firms must complete a Subscription Agreement Upon receipt of the completed Subscription Agreement, you will be contacted by Hover & Hessel LLC, which will provide a quote and assistance in completing the enrollment process.

Definition

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 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.

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

Benefits

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

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.

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

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

Premiums

Monthly Premium Rates

Groups of 10 or more currently enrolled in a group long-term disability plan will receive a minimum 15% savings over their current group LTD plan rates. Rates are guaranteed through September 2016.

The following rates apply to groups not currently participating in a group long-term disability plan.

Rates are guaranteed through September 2016

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