The ERS Board of Trustees awarded the third-party administrator contract for the Texas Employees Group Benefits Program (GBP) disability insurance plans to Aon Hewitt Absence Management, LLC (Aon Hewitt). The contract will cover a four-year term from September 1, 2013 to August 31, 2017. Aon Hewitt’s offices dedicated to the GBP are located in The Woodlands, Texas.
GBP disability coverage is available to active employees as an optional benefit and provides benefits for disabilities resulting from occupational and non-occupational illness or injury:
- Short-term Disability Insurance provides a maximum benefit of 66% of an enrolled employee’s monthly salary, up to a maximum of $10,000 or $6,600, whichever is less, for a period up to five months.
- Long-term Disability Insurance provides a maximum benefit of 60% of an enrolled employee’s monthly salary, up to a maximum of $10,000 or $6,000, whichever is less, for a period ranging from 12 months up to age 65, depending on the employee’s age at the time of disability.
As of December 2012, 113,653 GBP employees were enrolled in Short-term Disability Insurance and 89,298 employees were enrolled in Long-term Disability Insurance. Premiums paid by employees who elect to participate in these plans cover the full cost of these benefits. The ERS Board of Trustees will determine the amount of premiums for Plan Year 2014 at its May Board meeting.
Look for more information on the transition this summer.