1. PSEA Group Disability Plan
Welcome.
PSEA Group Disability Plan

2. What is Disability Income Insurance?
Disability Insurance is paycheck insurance
Most people insure their car, their home, their life….. sometimes even jewelry or pets….….
But when it comes down to it, your most important asset is not really your possessions, is it? It’s your ability to make a living.
I mean, if your paycheck was gone, how would you pay for all those things?
1 - Disability insurance is paycheck insurance.

3. 3 in 10 chance you will need Disability Insurance before you retire
1 in 47 chance you will use your Auto Insurance
1 in 88 chance you will use your Homeowner’s Insurance
3 in 10 chance you will need Disability Insurance before you retire
In fact, there is only a
1 in 47 chance you will use your auto insurance
1 in 88 chance of using your homeowners
And a whopping 3 in 10 chance you will need disability insurance before you retire.

4. Your most important asset is not your possessions…
it’s your ability to make a living.
Your most important asset is not your possessions,
It’s your ability to make a living

5. What about… Social Security? Unemployment Compensation?
Health Insurance?
Worker’s Comp Insurance?
Sick leave?
Sick leave banks?
District paid disability plans?
PSERS?
Sabbaticals?
Some people think that if they were to become disabled and unable to work, that
1 - Social Security,
2 - Unemployment Compensation
3 – Health Insurance, or
4 – Workers Comp,
Would take care of them and pay their expenses…
However, that is rarely the case… let me explain…

6. Only 30% of Social Security Disability Insurance applicants were approved*
The reality is,
1 - only 30% of Social Security Disability claimants were approved on their first application.
*Social Security Administration,

7. Unemployment Compensation is for those who can work
1 - And Unemployment Compensation is ONLY for those who are physically and mentally able to work.

8. Health Insurance covers medical services and prescriptions…
Not income
Health Insurance covers medical services and prescriptions;
1 - but it does not replace income for daily living expenses.
2 - In fact, when you are not working due to a disability, there may come a time where you have to pay for your own medical insurance premiums.
If you are no longer working, your district may stop paying your medical insurance premiums

9. Worker’s Comp is for a disability resulting from your job
Most disabilities are not job related*
And Worker’s Compensation provides benefits ONLY if a disability is a result of an on-the-job accident, injury or occupational disease.
1 –Most disabilities are not job related.
*Council for Disability Awareness, disabilitycanhappen.org; Social Security Fact Sheet, March 18, 2011

10. Accumulated sick leave pay (10 paid days per year)
No help for young members
Young members use up all sick days on pregnancy or taking care of ill children
Let’s look at accumulated sick leave first.
The average PSEA member gets 10 paid sick days per year.
1 - Obviously, this leaves out many of the younger workers as they haven’t been working long enough to accumulate that many days.
2 - And, they are more likely to use all of those paid days due to pregnancy and sick children
3 - As we stated earlier that “More than one in five can expect to be disabled for more than five years” - it would be impossible to accumulate enough sick leave to cover five years of pay.

11. Sick leave banks Limited number of days Likely not a full day’s pay
Subject to committee approval
Pregnancy is usually not covered
Sick Leave Banks…are helpful, but
1 - There are limits on the number of days members can use
2 - And even if they get a few days, most of the time it’s not a full days pay
3 - Receiving the days is subject to committee approval, not based on doctor’s diagnosis.
4 - And pregnancy is usually not covered
Please note that 30% of short-term disability claims last year in our PA block of business was due to pregnancy.

12. District-paid disability plans
Out of date
Salary caps too low
Lifetime max too low
The best scenario for members of course, is if their district offers a group plan.
1 - Unfortunately many of the plans we see in PA districts were put in place many years ago and have coverage gaps such as:
2 - Salary caps that no longer apply to today’s typical salaries
3 - Lifetime maximums that are too low
And other details
If you have one of these plans, give us a call and let us take a look at it. There are usually a few things we can do to tweak the plan and get it up to date.

13. PSERS Hired before July 2011 – must work 5 years before covered
Hired after July 2011 – must work 10 years before covered
Geared toward longer-term
And then of course there is the PSERS benefits.
1 - Some employees are covered after working for 5 years
2 - However, again – the younger workers – hired after July 2011, must be working for 10 years before being covered.
3 - PSERS applies mostly to longer-term disabilities

14. Sabbatical Must work 7 years to be eligible
Board approved. Not doctor approved.
And finally, there’s the Sabbatical taken for illness.
1 - Again, the member must work 7 years in order to be eligible for a sabbatical – once again leaving younger workers unprotected
2 - Like the sick leave banks, the leave has to be board approved, not doctor approved.
3 - And finally, the employee may have to return to work.

15. PSEA members need a disability plan to protect them
Mortgage
Medical bills & insurance
Debt
Childcare
Auto payment
More
So as you can plainly see, PSEA members are in dire need of a disability plan that will protect them, especially the younger members.
If they were to lose their paycheck they need a disability plan that can help with their
1- mortgage
2 – medical bills and medical insurance
3 – debt
4 – child care
5 – auto payment
6 – other expenses

16. Introducing the new PSEA Group Disability Plan
That’s why PSEA is now offering a new Group Disability Plan for PA districts.
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17. Causes of disability Heart disease Cancer Arthritis Pregnancy
Off-the-job accident
In fact, what causes most disabilities may surprise you.
The most common are caused by:
1- cardiovascular disease
2 -cancer
3 - arthritis,
4 – Pregnancy
5 - or, less often, disabilities can result from an off-the-job accident.
So…. If most disabilities are caused by illnesses…
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18. Short-Term Claims: Actual employer with 3599 employees

19. Long-Term Claims: Actual employer with 3599 employees

20. What are your members chances of becoming disabled?
You might be asking yourself, “what are my chances and my member’s chances for becoming disabled before I retire?”
The surprising and sobering answer is:
1 - Almost one-third of Americans entering the workforce today will become disabled before they retire.
Social Security Administration, Fact Sheet Jan 31, 2007

21. More than one in five can expect to be disabled for more than five years*
And one in five of us will be disabled for
1 - 5 years or more during our working careers.
That’s one in five of us.
* Commissioner's Disability Insurance Tables A and C, assuming equal weights by gender and occupation class

22. PSEA Members have GAPS in disability coverage.
PSEA members are gambling with their paychecks…
With odds of one in five!
What does all this have to do with PSEA members?
It has to do with PSEA because there are some members, especially younger workers, that have some pretty big gaps in disability coverage. And we will cover this in detail in a few minutes.
1 - Basically, it all boils down this: many PSEA members are gambling with their paychecks…
2 – and the odds are one in five!
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23. Neighboring states pay for teacher disability coverage
Only 35% covered
You may be surprised to know that school districts in other states have basic disability coverage that your members are lacking. For example,
1 - In Nebraska and Iowa, all of the districts provide employer-paid disability plans that cover 60-70% of salary.
2 - In MI and OH, most teachers are covered by plans covering 2/3 salary.
3 - In VA, WV, NJ, MD, CT and MA, about half of the districts provide 60% plans.
4 - In WI, the teachers have very rich plans where 90% of their salary is covered and they don’t even have to use their sick leave before the plan kicks in.
5 - In MN, most plans are employer-paid and cover the industry standard 2/3 salary, plus most plans in MN also pay benefits in addition to sick leave.
6 – In IN, the majority of school districts have employer-paid 2/3 salary plans that increase to 90% coverage after working for 5 years.
7 – And in PA, only 35% of School districts provide coverage, many of which are outdated policies – we will talk a little more about that later in the presentation.

24. The PSEA Group Disability Plan
Covers pregnancy
Covers mental/emotional illness
Choice of 6 different plans customized to meet the needs of PSEA members
No medical questions if enrolled during initial offering
Let’s take a brief look at the new PSEA Disability Plan. I will provide you with a handout with a detailed outline.
1 - First of all, the plan covers pregnancy which is something that is desperately needed by the younger workers
2 - It covers mental/emotional illness
3 - Employees get a choice of 6 different plans, all designed specifically for PSEA members’ unique situations
And one of which pays in addition to sick leave so the employee can get their sick leave pay in addition to the disability benefit.
4 - And there are no medical questions if members enroll during the initial offering.

25. The PSEA Group Disability Plan
Voluntary, member-paid, group rates
Statewide plan: Rates pooled with other PA districts
Flat rates – do not increase with age
1 - The plan is a voluntary plan. Employees can purchase the plan themselves, but at group rates.
2 - In fact, the rates are pooled with other PA school districts – that means that employees of a small district will pay the same as employees from a large district
3 - The rates are flat, meaning they are not based on age. A 55 year old will pay the same for coverage as a 25 year old.

26. MPEB – Medical Premium Expense Benefit
Will pay up to $1,500/month for medical insurance premiums
Paid in addition to the disability benefits
1 - This plan also includes a special benefit that will pay up to $1,500 per month for medical insurance premiums if you should lose your medical insurance due to being out of work.
2 - This benefit is paid in addition to the regular disability benefit payments.

27. Compare plan options

28. Quarterly meeting presentations
Central, Central-Western, Northwestern, Southwestern, Midwestern, Western and ESP regions
Bob Crook
Office:
Mobile: 
Eastern, Mideastern, Northeastern, Southeastern, Southern regions
Joe Walsh 
Office:
Mobile:
In order to get the word out about the need for a disability plan in PA, we would like to come to your region and give this presentation or a shortened version of this presentation at your quarterly meetings. If that is not possible, we can also just meet with your uniserve reps individually.
For the Central, Central-Western, Northwestern, Southwestern, Midwestern, Western and ESP regions, contact Bob Cook (say or "me" depending on who is talking)
For the Eastern, Mideastern, Northeastern, Southeastern, Southern regions, contact Joe Walsh (say or "me" depending on who is talking)

29. In the past hour, almost 3,000 Americans became disabled.
69% did not have disability insurance.
Half of them had to foreclose on their homes.