There is no better time than now to debunk the most commonly held Long Term Disability (LTD) Insurance myth amongst employees of federal government agencies – “the government has me covered”.
If you are relying fully on the government for Long Term Disability Insurance coverage, consider the following:
- You are not covered for LTD Insurance in the first 18 months of employment.
- There is an eligibility requirement. Your disabling illness or injury must be expected to last at least a year. So if you suffer from an accident or illness with a recovery period of less than a year, you will not qualify for the federal disability benefit.
- You are still required to file for your disability benefit from Social Security – and your coverage is then reduced by any social security benefit you receive.
- FERS employees: you will receive 60% of your salary for the first year of work (which is taxable), and 40% of your salary (which is taxable) – until you are eligible for normal retirement.
- CSRS employees: you will receive 40% of your salary (which is taxable) – until you are eligible for normal retirement.