The Long-Term Disability (LTD) plan, managed by Prudential, provides you with the continuation of a portion of your benefits base pay after a period of 26 weeks (the maximum benefit period for STD). You must be actively at work on the effective date. You have two LTD coverage options.
Benefits base pay means your base annual earnings, including any before-tax contributions you make through the benefits program. This does not include any overtime pay or bonuses. For certain benefit rate calculations, your benefits base pay is determined in either September, your date of hire or your transfer date, whichever is later. LTD will be paid at gross up rates for those eligible employees.
LTD benefits may not be payable if a pre-existing condition exists. A pre-existing condition is a medical condition for which medical treatment or advice was rendered, prescribed or recommended within 12 months prior to your effective date of coverage. A condition will not be considered pre-existing if it causes a disability that begins after you’ve been covered under the LTD plan for a period of 12 months. Gross up will apply to LTD payments. LTD is paid monthly by Prudential.
If you are under the age of 65 when your LTD claim was approved, you may continue certain Baker Hughes Medical coverage and Basic Life Insurance coverage for a maximum of 24 months from the date your LTD claim is approved. If you are approved for LTD at age 65 or after, you may continue Medical and Basic Life Insurance coverage until you are no longer receiving disability benefits under the LTD plan. You'll have the option to convert your Life Insurance policy at termination.
You will be required to pay your share of the cost for your Medical plan coverage, which will be billed to you monthly by the Baker Hughes Benefits Center. Failure to pay your premiums will result in termination of coverage.
You become eligible for Medicare disability benefits after 24 months of LTD.
*Subject to a reduction by deductible sources of income or other disability earnings.
Click on the Plan Overview Chart for more information about how your disability benefits coordinate.