Hess provides LTD coverage at no cost to you. LTD coverage replaces a portion of your pay if you become seriously ill or injured and cannot work for an extended period of time lasting more than 26 weeks.
LTD coverage replaces 60 percent of your annual base pay up to a maximum benefit payment of $15,000 per month.
So, if your base pay is $300,000 or less, you’ll have coverage that replaces 60 percent of your base pay up to $15,000 per month. However, if your base pay is over $300,000, your monthly LTD benefit will be capped at $15,000.
To ensure tax-free payments if you become disabled, the company’s cost to provide LTD coverage is considered imputed income by the IRS
How to Initiate a Disability Claim
If you’re unable to work due to an illness, injury or leave of absence that lasts more than five days, here’s what to do:
- Advise your manager or HR representative how long you anticipate being away from work.
- Report your absence to Matrix (our absence management administrator) by the sixth workday of your absence. If your leave is anticipated, contact Matrix at least 30 days before it’s expected to start.
Annual Base Pay
The definition of annual base salary depends on whether you are salaried or hourly, and does not include bonus or overtime pay. If you are a salaried employee, annual base salary is your annual salary. If you are an hourly employee, annual base salary is your hourly rate times 2,080 (52 weeks x 40 hours/week).