Page 133 - Group Insurance and Retirement Benefit IC 83 E- Book
P. 133
Figure 6-2
Application of Salary Continuation and LTD Benefits
Age Discrimination in Employment Act
While insurers and employers may place some restrictions on lifetime benefits, they also
must consider the requirements of the Age Discrimination in Employment Act. Under
this law, the upper age limits must be adjusted in some cases. The general requirements
include:
*Extending benefits to age 70 when disability occurs before that age.
*Paying benefits for disability that occurs after age 70, tempered by a shorter
benefit period than if disability had occurred earlier.
As an example of how the shorter benefit period might apply, the plan could be written in
such a way that any disability occurring at age 70 or earlier calls for a benefit period of
18 months. However, if the individual is age 71 or greater, the benefit period is shortened
to 12 months.
Benefit Amount
The monthly benefits paid under group LTD policies are determined in various ways,
with
