Page 12 - Galassos EE Guide 10-18_ENG_FINAL

BENEFITS

DISABILITY INSURANCE

Your chances of being disabled at some time during your working career are probably higher than you think. According to the Social
Security Administration report, a 20 year old at work has a 3-in-10 chance of becoming disabled before reaching retirement age.
Galasso’s Bakery has always believed that disability insurance is important because it replaces a portion of your income if you
become disabled and are no longer able to work. Galasso’s Bakery provides Long Term Disability benefits to you as an eligible
employee to provide income protection when an illness or non-work related injury keeps you from working.

California State Disability
If you experience a Short Term Disability claim, you are eligible for benefits provided by the state. California State Disability
Insurance (SDI) is a partial wage-replacement insurance plan for California workers. The SDI program is state-mandated and funded
through employee payroll deductions. SDI provides short term benefits to eligible workers who suffer a loss of wages when they
are unable to work due to a non-work related illness or injury, pregnancy or childbirth. For more information on eligibility, benefit
amounts and instructions on how to file a claim for the SDI program, please visit the EDD website at www.edd.ca.gov.

Guardian | Long Term Disability Insurance
Galasso’s Bakery offers you Long Term Disability (LTD) income replacement if you become disabled for an extended period of time,
through Guardian. If you become totally and permanently disabled, benefits begin 180 days after the start of your illness or injury
and will continue up to the later of age 65 or Social Security Normal Retirement Age (SSNRA). LTD works with state disability
programs, Social Security, and any other group disability coverage, to provide you with a combined monthly benefit equal to 60%
of your pre‐disability earnings up to a maximum benefit of $10,000 per month.

You have the choice of having Galasso’s Bakery pay for this benefit or you can pay with post-tax employee contributions. If
Galasso’s Bakery pays, your benefit will be taxable income when you file a claim. If you pay, the benefit is not taxed.

Galasso’s Bakery Pays You Pay
Disability Benefits are TAXED Disability Benefits are NOT TAXED

Employee Annual Salary $40,000 Employee Annual Salary $40,000
Annual LTD Benefit $24,000 OR Annual LTD Benefit $24,000
(60% of Salary Max $10,000/Month) (60% of Salary Max $10,000/Month)
Annual Taxes (assumed at 30%) $16,800 Annual Taxes (assumed at 30%) $0
Final Annual LTD Claim Payment $16,800 Final Annual LTD Claim Payment $24,000

Things to know about your plans...
For the purposes of California State Disability, Long Term Disability, and Life/AD&D insurance benefits, your salary is defined as
your annual earnings, including commissions but excluding overtime pay, car allowances and bonuses. The Long Term Disability
plan does not pay benefits for a disability which resulted, directly or indirectly from intentionally self-inflicted injuries, or
commission of a crime for which you have been convicted, or participation in a riot.

Please refer to the plan document for additional benefit reductions.

12