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.
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 typical savings of 10% over their current group LTD plan rates. (Savings amounts vary and are not guaranteed).
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.
To Enroll
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 typical savings of 10% over their current group LTD plan rates. (Savings amounts vary and are not guaranteed).
Solo: Long Term Disability
Solo: Long Term Disability
Long Term Disability for Solo Practioners is not available through CalCPA Health. LTD programs are available for groups of two employees or more.
For more information – Contact: Banyan Administrators – Managers for the CalCPA Health Programs (877) 480-7923.