RISD’s New RISD’s New Supplemental Supplemental

Short-Term Short-Term Disability PlanDisability Plan

INTRODUCTIONINTRODUCTION

PURPOSE OF BENEFITPURPOSE OF BENEFIT Enhance short-term income protection Enhance short-term income protection Replace and improve upon the current Replace and improve upon the current

Voluntary Short-term Disability Plan Voluntary Short-term Disability Plan (also administered by Prudential (also administered by Prudential Insurance) Insurance) 100% employer paid100% employer paid Benefit coverage increased from 70%, Benefit coverage increased from 70%,

inclusive of TDI, and capped at $1,500/wk. inclusive of TDI, and capped at $1,500/wk. to 80%, inclusive of TDI, no cap. to 80%, inclusive of TDI, no cap.

KEY BENEFIT KEY BENEFIT FEATURESFEATURES

ELIGIBILITYELIGIBILITY Non bargaining unit StaffNon bargaining unit Staff Budgeted work hours 17.5/week and Budgeted work hours 17.5/week and

910/year910/year

ENROLLMENTENROLLMENT Effective as of July 1, 2010Effective as of July 1, 2010 Eligible individuals will be automatically Eligible individuals will be automatically

enrolledenrolled Current voluntary coverage will cease as of Current voluntary coverage will cease as of

6/30/106/30/10

KEY BENEFIT FEATURES KEY BENEFIT FEATURES (cont)(cont)

COSTCOST 100% paid for by RISD100% paid for by RISD

COVERAGECOVERAGE Seven (7) consecutive days waiting periodSeven (7) consecutive days waiting period 80% of weekly base earnings, inclusive of 80% of weekly base earnings, inclusive of

TDITDI Supplemental benefit is taxable as employer Supplemental benefit is taxable as employer

paidpaid Eligible non work-related claims incurred on Eligible non work-related claims incurred on

or after July 1, 2010or after July 1, 2010

CLAIMS PROCESSCLAIMS PROCESS

1)1) Employee contacts PrudentialEmployee contacts Prudential2)2) Prudential will gather information from:Prudential will gather information from:

a.a. EmployeeEmployeeb.b. Treating Physician(s)Treating Physician(s)c.c. RISDRISD

3)3) Prudential will determine the eligibility of Prudential will determine the eligibility of claim and potential benefit amountclaim and potential benefit amount

4)4) Prudential will inform RISD HR/Payroll of Prudential will inform RISD HR/Payroll of claims status and payment amountclaims status and payment amount

5)5) Employee receives benefit via payroll Employee receives benefit via payroll checkcheck

EXAMPLEEXAMPLE

RISD employee StewieRISD employee Stewie

Disabled by doctor for three (3) Disabled by doctor for three (3) weeksweeks

Claim filed with Prudential Claim filed with Prudential Claim filed with TDIClaim filed with TDI

EXAMPLE (cont)EXAMPLE (cont)

Prudential will make initial assumption Prudential will make initial assumption that TDI, if approved, will pay 60% of that TDI, if approved, will pay 60% of base salarybase salary

Stewie’s pay is $1,000 per weekStewie’s pay is $1,000 per week 80% of $1,000 is $80080% of $1,000 is $800 TDI covers 60% of $1,000 or $600 (non TDI covers 60% of $1,000 or $600 (non

taxable)taxable) Supplemental plan will cover remaining Supplemental plan will cover remaining

20% or $200 and the $200 is taxable 20% or $200 and the $200 is taxable

QUESTIONS?QUESTIONS?

Cathy Davis | ext. 6429 | Cathy Davis | ext. 6429 | cdavis@risd.educdavis@risd.edu

Steven Lee | ext. 6429 | Steven Lee | ext. 6429 | slee05@risd.eduslee05@risd.edu