Disability Insurance

Unum

If you experience an injury or illness that prevents you from working, disability coverage provides partial income replacement to assist you financially. Using paid leave is required to supplement these benefits.

Plan Documents

Short-Term Disability

Short-Term Disability (STD) coverage, through Unum, provides some income replacement if you are unable to work due to an illness or injury. You are automatically enrolled in STD at no cost to you. Coverage is effective the first day of the month following your date of hire.  

Short-Term Disability (STD) 

  • Percent of Earnings: 60% 
  • Weekly Maximum: $3,000 
  • Waiting Period: 30 days
  • Maximum Duration: 150 days during a 12-month period (following the required 30-day elimination period)

Employees may use their sick bank or PTO during the 30 calendar day elimination period and may continue using it to supplement their disability benefits up to 100% of weekly pre-disability compensation.

Paid Leave Supplement to STD Benefit

Employees are required to use accrued paid leave during the 30-day waiting period for short-term disability benefits, including the use of accrued annual leave and/or compensatory time once accrued sick leave has been exhausted.

Employees who elect to be made whole will use accrued sick leave first, then annual leave or compensatory time as available. 

Taxation of STD Benefits

Internal Revenue Code (IRC) Section 105 indicates that STD benefits, as sick pay, are to be included in the gross income of employees if the employer pays part or all of the premium for the STD coverage. In these situations, the STD disability benefits received by the employee are subject to federal taxation. The State of Colorado pays the entire STD insurance premium which means that the STD benefits received are 100% taxable to the employee.

PERA Defined Benefit Vested Employee &, Unum Short-Term Disability (STD)

Employees with at least five years of PERA Defined Benefit (DB) Retirement Plan covered employment service may be eligible for PERA STD benefits. The Unum STD insurance coverage will always coordinate with an employee’s PERA STD coverage. The PERA STD benefits will always be the primary STD benefits and will be an offset to Unum STD benefits.

PLEASE NOTE: Paid leave supplements will offset PERA disability payments. Employees should stop paid leave supplements prior to the commencement of PERA disability benefits.

Optional Long-Term Disability

Optional Long-Term Disability (LTD) pays you 60% of your earnings if you cannot work for an extended period due to a disabling illness or injury. Employees regularly scheduled to work 12+ hours/week are eligible to enroll.

Plan Costs (FY 2022-23)

Optional Long-Term Disability (LTD)

  • Percent of Earnings: 60%
  • Monthly Maximum: $10,000
  • Waiting Period: 180 calendar days
  • Maximum Duration: Up to age 65 (longer if disabled after age 60)

As long as you continue to meet the definition of disability, benefits are payable until age 65 or beyond, depending on your age when you become disabled.

Taxation of Optional LTD Benefits

Optional LTD benefits are not subject to federal taxation because the employee pays 100% of the Optional LTD premium on a post-tax basis. This means the Optional LTD benefits are not included in the gross income of the employee.

PERA Defined Benefit Vested Employee & Unum Optional Long-Term Disability (LTD)

Employees with at least five years of PERA Defined Benefit (DB) Retirement Plan covered employment service may be eligible for PERA Disability benefits. The Unum Optional LTD insurance coverage will always coordinate with an employee PERA Disability coverage. The PERA Disability benefits will always be the primary Disability benefits and will be an offset to Unum‚ Optional LTD benefits.

PLEASE NOTE: Paid leave supplements will offset PERA disability payments. Employees should stop paid leave supplements prior to the commencement of PERA disability benefits.

Questions?

The information on this page is an overview and is not intended to be a complete description of the benefits. A more detailed summary plan description for the plans can be found linked on this page. If there is a conflict between the information on this page and the official plan documents, the plan documents will govern. The State of Colorado reserves the right to modify or terminate any of the described benefits at any time and for any reason. The descriptions of these benefits are not a guarantee of current or future employment or benefits. For additional information about the specific plans available to you, please contact your agency's Benefits Administrator.