New Employee Benefits Enrollment - Dow Corning
New Employee Benefits Enrollment - Dow Corning
New Employee Benefits Enrollment - Dow Corning
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LONG TERM DISABILITY (LTD)<br />
Coverage is effective on your first day of work. See Benefit <strong>Enrollment</strong> Information page for details on<br />
how to enroll for benefit coverage.<br />
If you fail to enroll within two months from your start date, you will be automatically enrolled in the<br />
default plan, which is the 50% LTD plan.<br />
Plan Highlights<br />
<strong>Dow</strong> <strong>Corning</strong>’s Long-Term Disability (LTD) Income Protection Plan may provide income for you in the<br />
event of an illness or injury that prevents you from working for more than six months. Two coverage<br />
options are available under the Plan; 50 or 60 percent replacement of your base annual salary.<br />
You should know…<br />
� The monthly catastrophic disability payment would be equal to an additional 20 percent of your<br />
monthly base income.<br />
� <strong>Benefits</strong> received through the Long-Term Disability plan are non-taxable. This example shows<br />
the impact on disposable income:<br />
Monthly income (based on annual income of $50,000) . . . . . . . . . . . . . . . . . . . . . . . . . . $4,167<br />
Disposable monthly income (assuming 29% in federal, state, and FICA taxes) . . . . . . . $2,959<br />
60% tax-free monthly LTD benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,500<br />
In this example, the 60 percent LTD benefit provides an 84 percent disposable income<br />
replacement ($2,500 benefit compared to $2,959 disposable income). If a Catastrophic Benefit<br />
applies (supplying an additional 20 percent benefit), you would receive 113 percent disposable<br />
income replacement:<br />
60% tax-free monthly LTD benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,500<br />
20% tax-free Catastrophic benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 833<br />
Total monthly benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,333<br />
Annual <strong>Employee</strong> Contribution for 2008<br />
Coverage Level Cost<br />
50 Percent No Cost – <strong>Dow</strong> <strong>Corning</strong> provided<br />
60 Percent .0007 x annual base salary<br />
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