Employee Matters

This column is prepared by staff of the Employee Compensation and Benefits Services office. E-mail the office at employee@bussvc.wisc.edu, or call 263-7556 or 262-5650. For information, visit http://www.bussvc.wisc.edu/ecbs/ecbs.html.

Disability Benefits

This is the last of four articles on disability benefits. This article focuses on how disability impacts health and life insurance.

State Group Health Insurance

• There is no employer contribution toward health insurance premiums once your Wisconsin Retirement System (WRS) disability is approved.
• You are not required to use any of your sick leave if you apply for a WRS disability benefit; sick leave may be preserved to pay for health insurance premiums.
• You are not required to use any of your sick leave if you apply for Income Continuation Insurance (ICI) and a WRS disability benefit at the same time. Sick leave credits may be preserved to pay for health insurance premiums.
• If you carry state group health insurance, your sick leave credits will be converted at the time you terminate employment.
• If your spouse is a state or university employee, you should transfer the coverage so that your spouse becomes the subscriber, as this will preserve your sick leave credits for future use and your spouse will get the benefit of the employer contribution toward premiums.
• If you are covered as a dependent on your spouse’s state group health insurance, your sick leave credits will be converted and preserved for later use.
• You can preserve your sick leave credits if you do not have state group health insurance and your spouse is not insured in the state plan but has comparable coverage for you on her/his plan with another employer. Prior to terminating employment, you can enroll in the standard plan with single coverage for one month. You are then eligible to escrow your sick leave credits for future use.
• Should you die prior to using the escrowed sick leave, the credits are available for use by your dependents.

• State Group Life Insurance
  

  Life insurance coverage can be continued without payment of premiums (premium waiver feature) if you become totally disabled. You must continue to pay premiums until you receive notice from the insurance company that premiums have been waived.

  This life insurance plan has a living benefit clause. In case of serious medical problems, life insurance proceeds can be paid to you while you are still alive rather than to your beneficiaries after your death. You can apply for living benefits for up to the full value of coverage in force. You must meet certain medical criteria to qualify.

  You may also be eligible to convert your basic group life insurance coverage to pay premiums for health insurance or long-term care insurance.

  Individual and Family Group Term Life Insurance
  

  You are eligible for a premium waiver due to total and permanent disability if the disability commences prior to age 60 and you are insured in this plan. There is a six-month waiting period that begins after the last day worked. You must pay the premiums during the waiting period until the premium waiver is approved. The waiver applies to all of the coverage you have with this plan including spouse and dependent coverage and ceases when you reach age 65, return to employment or are no longer totally disabled.

  For questions, e-mail employee@bussvc. wisc.edu.