Changes to Long Term Disability Plan
The Gabor Agency, Inc. has made some minor changes to the Long-Term 30/90 disability coverage, which is currently underwritten by UNUM Provident.
Gabor’s plan will continue to offer a full 66 2/3% of salary replacement for most employees and will also maintain the unique feature of an 11% contribution to a retirement plan in the event of a long-term disability.
Effective January 1, 2007, the new rate of coverage for the “90-day option” will be $.61/$100 of salary coverage, and the “30-day option” will be $.94/$100 of salary coverage.
Also, the following plan enhancements will also begin on January 1, 2007:
The maximum monthly benefit will automatically increase from $7,000 to $9,000.
A three-year rate guarantee has been negotiated, which will secure these prices through 12/31/2009.
Additionally, Gabor will be making the following contract modifications:
The cost of living adjustment will change from 3% to 2% annually.
The definition of disability has changed to reflect a two-year “own occupation” rather than a three-year.
The Social Security offset will now include any monies an employee or their family receives as a result of an employee’s disability.
It’s important to note that any employee currently out on a disability claim will be unaffected by these changes in the contract. All other benefits remain in effect, and you can review the draft contract online at www.gaboragency.com.
If you have any questions, please contact the Office of Human Resources at (904) 620-2903.