Long-Term Disability
Old National provides long-term disability (LTD) benefits at no cost to eligible full-time team members who are unable to work because of a long-term qualifying medical disability.
Long-Term Disability
Old National provides long-term disability (LTD) benefits at no cost to eligible full-time team members who are unable to work because of a long-term qualifying medical disability. The coverage is effective the first of the month following six (6) months of employment.
If a disability lasts longer than 26 weeks, Short-Term Disability benefits cease and LTD benefits may begin. LTD benefits equal 60% of an team members’ regular monthly income. The monthly maximum benefit is $15,000 for team members receiving LTD benefits.
All eligible, enrolled full-time team members will have the opportunity to select the income tax treatment for their long-term disability (LTD) benefits.
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UNUM LTD Coverage (pdf) (244 KB)
Pre-Tax vs Post-Tax
Old National provides LTD benefits to eligible, enrolled full-time team members. ONB pays the full premium for the coverage and does not include the cost of the coverage in the team member’s gross income. This means a team member approved for and receiving LTD benefits will have to pay taxes on the funds they receive from the LTD carrier.
Old National will continue to pay the LTD premium for eligible, enrolled full-time team members. However, each eligible full-time team member will have the option to elect to have the company pay for the LTD coverage on an after-tax basis; that is, elect to be taxed on the premiums paid by Old National. This means the premiums will be reported on the team member’s Form W-2 for that year. If an team member who elected the after-tax treatment is approved for and receiving LTD benefits, then they will not pay taxes on the benefit they receive from the LTD carrier.
The decision to have the cost of LTD coverage paid on an after-tax basis must be made prior to the beginning of each plan year and is irrevocable once made. Any team member who becomes eligible for LTD coverage during the plan year, such as a new hire or changing from part-time status to full-time status, may make an irrevocable prospective election for the remainder of that plan year.