Policy A-19

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(Approved: Trustees 6/17/77)

The Long Term Disability Income Continuation Plan is a University-operated and funded plan.

A. Participation

This plan is for employees who are participants in one of the TIAA-CREF Retirement Plan [Plan 15 and Plan 12] who have fulfilled the following service requirements:

1. Professors, associate professors, assistant professors, instructors, librarians, associate librarians, assistant librarians, and affiliate librarians must have completed at least five years of service and must have acquired tenure.
2. The President, the vice-presidents, and the deans must have completed at least five years of service.
3. Others enrolled in TIAA-CREF, including administrative officers and junior administrative officers, must have completed at least seven years of service.

B. Monthly Disability Income Benefit

If two physicians employed by the University to evaluate a disability claim attest that a person who fulfills the conditions listed above is totally disabled (as defined below), the University plans to pay a monthly disability income benefit to begin on the first of the month after the employee has been totally disabled for a period of six consecutive months. The monthly disability income benefit shall be paid during each month of continuing total disability. The University may at any time require evidence that total disability continues.

C. Size of Disability Benefit

The monthly disability income benefit payable under this plan shall be equal to 60% of the covered employee's monthly salary (as defined below), except that the benefit otherwise payable shall be reduced:

1. By the amount of excess by which the sum of the monthly disability income benefit and the primary monthly Social Security disability income benefit exceeds 70% of covered monthly salary.
2. By the single life annuity then available from TIAA-CREF from standard premiums paid during Indiana University employment assuming that all such premiums were made to TIAA.
3. By any monthly disability benefit available under any workmen's compensation, occupational disease or similar law.

Provided however, after age 65 no disability income benefit, derived from Indiana University employment, shall exceed the benefits that would have been payable under an Indiana University retirement plan at age 70 had the employee's career not been interrupted or terminated by disability.

D. Cost-of-Living Adjustments

During payment of the monthly disability income benefit, cost-of-living adjustments to the sum of the TIAA calculated annuity and the supplemental retiring allowance shall be determined annually as of July l and added to the monthly disability income benefit beginning on the following January l based on consideration of the annual increase in compensation of full-time faculty, but not to exceed in accumulative total the Consumer Price Index accumulated increase since July 1 of the fiscal year of disability retirement.

E. Definitions

1. An employee shall be considered totally disabled
a. for the first year from the date benefits first become payable if and while such employee is completely unable to engage in the regular occupation or profession he would be expected by the University to pursue in the absence of his disability and assuming continuing employment in the position occupied at the time of disablement.
b. after the first five years in any period of continuous disability if and while such employee is completely unable to engage in any reasonably gainful occupation for which the employee is suited by education, training or experience, with due regard being given to the nature of the employee's occupation at the time disability shall have begun and to the employee's prior average earnings.
c. in the following circumstances: The entire and irrecoverable loss of the sight of both eyes, or of the power of speech, or of the use of both arms or of both legs or of one arm and one leg shall always be acceptable as constituting total disability as long as such loss continues; and upon the occurrence of any such loss described in this sentence the benefits for total disability will vest from the date of such total disability even though the six-month waiting period referred to in paragraph B. has not expired. Speech means audible communication of words, with or without artificial assistance.
2. Covered employee's monthly salary, as referred to above, shall be one-twelfth of base salary. Base salary shall mean the accumulated compensation over 10 months or 12 months as entered in the annual budget and in the salary or appointment letters to the employee.

F. Exclusions

1. Injury or sickness resulting from war, declared or undeclared.
2. Intentional self-inflicted injury or sickness, whether the individual be sane or insane.
3. Due to any act of international armed conflict, or conflict involving the armed forces of any international authority.
4. Incurred while in the armed services of any country or international authority.