Long-Term Disability
Under the IBM Long-Term Disability Plan (the “LTD Plan”), you are eligible for a monthly income benefit, subject to the limitations and conditions of the Plan, if you are disabled and have completed the elimination period. The employee contribution is different for those with less than five years of services and those who have more than five years of service.
Long-Term Disability – more than 5 years of service
IBM automatically provides coverage of 50% of your regular monthly compensation at no cost to you.
You may choose to purchase coverage of 66 2/3% of your regular monthly compensation during annual enrollment. Rates vary based on age and regular monthly compensation, and premiums are deducted on a pre-tax basis. Rates may be revised annually and are provided in a supplemental sheet that is available from the IBM Employee Services Center upon request. If you do not purchase 66 2/3% coverage during annual enrollment, your default coverage will be 50%.
If you choose to increase your LTD coverage to the 66 2/3% option within 30 days of reaching five years of service, a medical review will not be required. If you wish to increase your LTD coverage at a later time, you may do so during annual enrollment and a medical review will be required.
Long-Term Disability – less than 5 years of service
You may choose to enroll in one of the following coverage options:
- 50% of regular monthly compensation
- 66 2/3% of regular monthly compensation
- No LTD coverage
If you choose “No LTD coverage”, you will not receive salary continuation benefits beyond those offered by the IBM Short-Term Disability Plan. If you do not choose an LTD coverage option when you are first eligible to enroll, you will be automatically enrolled in 50% income replacement coverage. If you choose to increase your LTD coverage at a later time from “No LTD coverage” to the 50% or 66 2/3% option, or from the 50% option to the 66 2/3% option prior to attaining 5 years of service, you may do so during an IBM annual enrollment period and a medical review will be required.
If you choose to purchase coverage of 50% or 66 2/3%, rates will vary based on age and regular monthly compensation, and premiums are deducted on a pre-tax basis. Rates may be revised annually and are provided in a supplemental sheet that is available from the IBM Employee Services Center upon request.