Long-term disability insurance

Who is eligible?

The PEBB Program offers employer-paid long-term disability (LTD) insurance to eligible employees of:

• State agencies
• Higher-education institutions (including community and technical colleges)
• Employees who work for a PEBB participating tribal government, or employer group that offers both PEBB medical and dental coverage. (Contact your payroll or benefits office to see if this is part of your benefits package.)

If you are eligible for PEBB benefits, you will automatically be enrolled in basic LTD insurance coverage, even if you waive PEBB medical coverage.

Employee-paid LTD insurance is not available to seasonal employees who work a season that is less than nine months, or port commissioners.

What is employer-paid LTD insurance?

LTD insurance protects a portion of your salary if you are unable to work due to serious injury or illness. When you enroll in LTD coverage, it pays you a percentage of your monthly earnings if you become disabled.

If eligible, you will automatically be enrolled in employer-paid LTD insurance, even if you waive medical coverage. You do not need to provide evidence of insurability (proof of good health).

The PEBB Program's full employee benefits package includes employer-paid LTD insurance at no cost to you.

Employer-paid LTD insurance

Employer-paid LTD provides:

• Benefit: 60 percent of the first $400 of your predisability earnings.
• Minimum: $100 or 10 percent of the LTD benefit before deductible income (whichever is greater)
• Maximum: $240/month

Benefits start after the benefit-waiting period, which is the longer of:

• 90 days;
• The entire period of sick leave (excluding shared leave) for which the employee is eligible;
• The "fractionated period" of paid time off (PTO) for which the employee is eligible, if your employer has a PTO plan, as those terms are defined in the policy;
• The entire period of other non-vacation salaried continuation leave for which the employee is eligible;
  or
• The end of Washington Paid Family and Medical Leave for with the employee is receiving benefits.

Benefits continue during your disability up to the maximum benefit period. The maximum benefit period is determined by your age when your disability begins.

What is employee-paid LTD insurance?

If you are eligible for employer-paid LTD, you will be automatically enrolled in a plan that covers 60 percent of your predisability earnings (up to $16,667). You do not need evidence of insurability.

At any time, you can reduce to a lower-cost 50-percent coverage level or decline the coverage. If you later decide to enroll in or increase coverage, you will have to provide evidence of insurability and be approved by the insurer. An increase in coverage takes effect the first day of the calendar month following the date evidence of insurability is approved.

60-percent plan

60-percent employee-paid LTD benefit provides:

• Benefit: 60 percent of the first $16,667 of your predisability earnings, reduced by any deductible income.
• Minimum: $100/month or 10 percent of the LTD benefit before deductible income, whichever is greater.
• Maximum: $10,000/month

Benefits start after the benefit-waiting period, which is the longer of:

• 90 days;
• The entire period of sick leave (excluding shared leave) for which the employee is eligible;
• The "fractionated period" of paid time off (PTO) for which the employee is eligible, if your employer has a PTO plan, as those terms are defined in the policy;
• The entire period of other non-vacation salaried continuation leave for which the employee is eligible;
  or
• The end of Washington Paid Family and Medical Leave for with the employee is receiving benefits.

Benefits continue during your disability up to the maximum benefit period. The maximum benefit period is determined by your age when your disability begins.

50-percent plan

50-percent employee-paid LTD benefit provides:

• Benefit: 50 percent of the first $16,667 of your predisability earnings, reduced by any deductible income.
• Minimum: $100/month or 10 percent of the LTD benefit before deductible income, whichever is greater.
• Maximum: $8,333/month

Benefits start after the benefit-waiting period, which is the longer of:

• 90 days;
• The entire period of sick leave (excluding shared leave) for which the employee is eligible;
• The "fractionated period" of paid time off (PTO) for which the employee is eligible, if your employer has a PTO plan, as those terms are defined in the policy;
• The entire period of other non-vacation salaried continuation leave for which the employee is eligible;
  or
• The end of Washington Paid Family and Medical Leave for with the employee is receiving benefits.

Benefits continue during your disability up to the maximum benefit period. The maximum benefit period is determined by your age when your disability begins.

How do I reduce or decline employee-paid LTD?

Note: Pierce County, Washington State University, and University of Washington employees use Workday to make changes.

At any time, you can reduce or decline your employee-paid coverage using Benefits 24/7 or by submitting the Long-Term Disability Insurance Enrollment/Change form to your payroll or benefits office. If you later decide to enroll in or increase coverage, you will have to provide evidence of insurability and be approved by the insurer.

How much does employee-paid LTD insurance cost?

View LTD insurance rates. To find your premium, use the premium calculator on Standard's website or use this formula: your monthly insured earnings (not to exceed $16,667) x employee type rate = monthly premium.

Employee-paid LTD rates

2025

Coverage level	Higher-education employees retirement plan	TRS, PERS, and other retirement plans
60 percent	0.0053	0.0042
50 percent	0.0032	0.0025

2024

Coverage level	Higher-education employees retirement plan	TRS, PERS, and other retirement plans
60 percent	0.0059	0.0047
50 percent	0.0035	0.0028

Terms and conditions apply

LTD insurance has limitations, including a 12-month exclusion period and a preexisting condition exclusion. Please read your LTD benefits booklet carefully to understand this benefit.

What is the definition of a disability?

Disability is defined as being unable to perform with reasonable continuity the duties of your own occupation as a result of sickness, injury, or pregnancy during the benefit waiting period and the first 24 months for which LTD benefits are payable. During this period, you are considered partially disabled if you are working but unable to earn more than 80 percent of your indexed predisability earnings.

After the first 24 months, disability as a result of sickness, injury, or pregnancy, means being unable to perform with reasonable continuity the material duties of any gainful occupation for which you are reasonably able through education, training, or experience. During this period, you are considered partially disabled if you are working but unable to earn more than 60 percent of your indexed predisability earnings in that occupation and in all other occupations for which you are reasonably suited.

What is the maximum benefit period?

For both employer-paid and employee-paid LTD coverage, the length of time you can receive the benefit is based on your age when the disability begins.

*Social Security Normal Retirement Age, your normal retirement age under the Federal Social Security Act.