TWU Long Term Disability Insurance premium doubles in price

I got a letter from the company about this, and one thing I noticed that I didn't realize before was that the LTD only paid until age 65. Has it always been that way? I'd been kicking myself about letting my LTD lapse last year then having surgery for a ruptured disc in my neck in January of last year and being off work for almost 6 months.. Since I was already 70 when the surgery occurred if that has always been a restriction on LTD, I inadvertently saved myself some money by letting it lapse. :)
 
I'd love to hear from someone on the boards who actually used the insurance and what it did or didn't do for them?

The TWU leaders have always seemed to express a strong opinion for those of us in the plan to stay in it and don't take the leap out.

How good is the plan actually and do you have to jump through a myriad of hoops to get it to pay out?
 
My understanding is Its going to pay 50% of your earnings OT/CSs included from a snap shot of the previous 12 months, tax free. However, a person has to jump through some fairly substantial hoops and be really unable to work to qualify.

I expected premiums to go up to coincide with our increased hourly wage. For me the insurance is worth it and my premium didn't double, it went up approx 30%, slightly more then the raise.
 
DallasConehead said:
My understanding is Its going to pay 50% of your earnings OT/CSs included from a snap shot of the previous 12 months, tax free. However, a person has to jump through some fairly substantial hoops and be really unable to work to qualify.

I expected premiums to go up to coincide with our increased hourly wage. For me the insurance is worth it and my premium didn't double, it went up approx 30%, slightly more then the raise.
Click to expand...


DallasConehead thank you very much. Seriously thank you.
 
When I had the LTD plan in the early 2000's, (i took it soon after it was offered) there wasn't a 'cut off' age. When did they change it to 'kick you out at 65' ?
 
DallasConehead said:
I thought it goes until SS FRA.
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So are you saying that if someone chooses to not collect SS until they have to at 70 they would still receive payouts from the insurance?

I have the LTD myself and am not planning on dropping it unless there was something better out there or it was ridiculous to keep it because it would be almost impossible to collect.

And I've never done any research really on the insurance so thanks again for the help.
 
WeAAsles said:
So are you saying that if someone chooses to not collect SS until they have to at 70 they would still receive payouts from the insurance?

I have the LTD myself and am not planning on dropping it unless there was something better out there or it was ridiculous to keep it because it would be almost impossible to collect.

And I've never done any research really on the insurance so thanks again for the help.
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No, SS FRA is a defined age by law. For example, for me it is 67 , you should check your SS benefits info to find out what yours is.. That is when LTD would stop if I were collecting it. Now, some folks may decide to not collect SS at FRA because their SS increases by doing so. That is a financial decision folks make based upon a lot of variables. This doesn't change FRA.
 
Last edited by a moderator:
Age To Receive Full Social Security Benefits
(Called "full retirement age" or "normal retirement age.")
Year of Birth * Full Retirement Age
1937 or earlier 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943--1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67
*If you were born on January 1st of any year you should refer to the previous year. (If you were born on the 1st of the month, we figure your benefit (and your full retirement age) as if your birthday was in the previous month.)

https://www.ssa.gov/planners/retire/retirechart.html
 
You can start your Social Security retirement benefits as early as age 62 or as late as age 70. Your monthly benefit amount will be different depending on the age you start receiving it. If you choose to:

  • start your benefits early, they will be reduced based on the number of months you receive benefits before you reach your full retirement age. The reduction in your benefit amount also depends on the year you were born. The maximum reduction at age 62 will be
    • 25 percent for people who reached age 62 in 2013.
    • 30 percent for people born after 1959.
    You could see a change in your benefit amount if you work after you start receiving benefits.

    Some of your benefits may be withheld if you have excess earnings. However, after you reach full retirement age, we will recalculate your benefit amount to give you credit for any months in which you did not receive some benefit because of your earnings.

  • wait until full retirement age, your benefits will not be reduced.

  • delay benefits until after full retirement age, your benefit will be increased based on the number of months you do not receive benefits between full retirement age and age 70.

    Caution: If you apply for benefits more than 6 months after the month you reach full retirement age, we can only pay benefits for the previous 6 months.

    There is no additional benefit increase after you reach age 70, even if you continue to delay taking benefits.
https://www.ssa.gov/planners/retire/applying1.html
 
Here is the location for the LTD Policy for 591:

http://www.local591.com/docs/VLTD_ Policy.pdf

https://www.ssa.gov/

It explains everything in detail, I'm hopeful a new policy will be will be posted with a change in carriers. I would suggest consulting the website for your local or contacting a rep from your local for the policy if it is not already posted there. Since you are paying for the benefit you have a right to get the Policy Description.

Additionally, I don't know how close you are to retirement, but it never hurts to start familiarizing yourself with the Social Security Administration. I am on the home stretch. At some point you will have to make financial decisions and knowledge about the system will benefit you in making those decisions.
 
DallasConehead said:
No, SS FRA is a defined age by law. For example, for me it is 67 , you should check your SS benefits info to find out what yours is.. That is when LTD would stop if I were collecting it. Now, some folks may decide to not collect SS at FRA because their SS increases by doing so. That is a financial decision folks make based upon a lot of variables. This doesn't change FRA.
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Ok I was having a complete brain fart on what the heck FRA meant. I mean a serious brain fart.

That FRA thing is so weird anyway. So far everyone can still begin collecting at 62 but yea the payouts are reduced. But the weird part to me is how can they call it FRA if I can still get more by waiting until I'm 70? So to me 70 is the real FRA.

And again thanks for all the info. Do you maybe want to try a ceasefire against each other? I know I can occasionally be a D and I will never totally change who I am, but I am trying to soften up and loosen up just a little with the new year.
 
DallasConehead said:
Here is the location for the LTD Policy for 591:

http://www.local591.com/docs/VLTD_ Policy.pdf

https://www.ssa.gov/

It explains everything in detail, I'm hopeful a new policy will be will be posted with a change in carriers. I would suggest consulting the website for your local or contacting a rep from your local for the policy if it is not already posted there. Since you are paying for the benefit you have a right to get the Policy Description.

Additionally, I don't know how close you are to retirement, but it never hurts to start familiarizing yourself with the Social Security Administration. I am on the home stretch. At some point you will have to make financial decisions and knowledge about the system will benefit you in making those decisions.
Click to expand...


I've got another 10 years before my personal minimum I'm out age of 62. From there I'm going to take it year by year with my birthday being my last day up to 65 max.

Oh and the raises we just got (That hopefully we keep) really scu the numbers I originally had. Should be a nice improvement for both SS and my 401k.
 
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