Disability Insurance Overview
Short-term disability (STD) and Long-term disability (LTD) coverage is important protection for you and your family. It replaces a portion of your income should you become disabled and unable to work due to accidental injury or illness. eFunds disability coverage is administered by CIGNA.You must be a full-time employee (scheduled to work 33 or more hours per week) and actively at work to be eligible for disability coverage. You must also be under the care of a physician and satisfy other conditions to qualify. Important! If you are a new hire, you are not eligible for these benefits until the first day of the month following 90 days of employment.

Short-term Disability (STD) Coverage

STD is a benefit paid by eFunds. Therefore you will not see payroll deductions for this benefit. You will be automatically enrolled for coverage.STD coverage provides you with short-term income protection if you become disabled from a covered sickness, accident, or pregnancy. The plan replaces 75% of your covered earnings. Benefits begin the first day of a non-work related injury or on the eighth calendar day of a disabling illness. You may use paid time off to cover the days before you become eligible for STD. In case of a disabling pregnancy, eFunds will provide five working days of paid leave of absence as part of its Parental Leave Policy before STD coverage begins on the eighth calendar day. Coverage is provided for up to 13 weeks. You may use accrued PTO to supplement the 75% payment.

Long-term Disability (LTD) Coverage

LTD coverage is also paid by eFunds. The plan replaces 60% of your base monthly earnings, up to a maximum of $15,000. There are two LTD election options: "After-Tax" and "Pre-tax". You will automatically be enrolled for the "pre-tax" option. If you ever receive long-term disability payments, those payments may or may not be taxable income to you depending on your enrollment election. This should not be confused with pre-tax and post-tax payroll deductions because there are none for this benefit. Please read this information carefully to determine which option you would like.

Pre-tax Option

If, in the future, you ever receive LTD benefit payments and you don't mind if that income would be taxable, you would elect the "pre-tax" option. This is a little confusing because it infers a payroll deduction for this benefit, but there is none.

After-tax option

If you pay income taxes on the insurance premium eFunds pays on your behalf, your LTD benefit payments will not be taxable income to you. There will be a payroll deduction for this option. In order for you to pay taxes on the LTD insurance premium, you will see additional earnings (the amount of the LTD premium) on each paycheck. Taxes will then be calculated on that amount but you will not see the additional earnings in your net income. For example, an exempt employee earning $50,000 would be taxed on $4.17 each paycheck.
Your STD or LTD benefits may be offset by retirement or government plans or disability benefits, other group disability plans, settlements or payments received, no-fault benefits, and return-to-work earnings. Also, if you become disabled after age 60, additional benefit restrictions apply. For more information regarding Short-term and/or Long-term Disability, you can find the Summary Plan Description (SPD) for both types of coverage under the Forms link.
The information about benefits shown here is only a brief overview, providing highlights of the eFunds welfare benefit plans. If there are any differences between this overview and the official plan documents, the plan documents will govern. eFunds reserves the right to amend or terminate the welfare benefit plans for any reason and in its sole discretion, and you would be subject to such amendments or termination. For more information contact the Benefits Department.