Employee Matters

The staff of the Employee Compensation and Benefits Services staff prepares this column, which, for this issue, explores the integration of income continuation insurance with other benefits.

Income continuation insurance and other benefits

Can I collect ICI and other benefits at the same time?
When receiving ICI, it is the primary benefit, and it is offset by receipt of other benefits to which you are entitled.

What other benefits offset the ICI payments?
Benefits used to offset against ICI payments include, but are not limited to, regular or disability Social Security; workers’ compensation; Wisconsin Retirement System disability; separation, monthly or lump-sum retirement benefits; long-term disability insurance; unemployment compensation; federal retirement benefits, etc.

How does the offset work?
An example: An employee receiving ICI at 75 percent of a base salary of $2,000 monthly would receive ICI payments of $1,500 per month. If eligible to receive workers’ compensation, an employee’s ICI payments would be offset by the amount payable by workers’ compensation. Workers’ compensation is payable at 66.66 percent of salary. Therefore, 66.66 percent of $2,000 = $1,333.20. The ICI payment would be reduced to $166.80 ($1,500 less $1333.20 =$166.80).

If an employee is eligible for other benefits, ICI might have no liability for payments.

What’s my responsibility regarding notification of other benefit payments?
An ICI recipient must notify the company that administers ICI, CORE Inc., immediately upon receipt of other benefits to avoid overpayments. If overpaid, the recipient is responsible.

Am I required to apply for other benefits?
Yes, you will be required to apply for any benefits you may be eligible to receive. CORE contacts ICI recipients to advise when application for other benefits is required.

What happens if I do not qualify for any other benefits?
If you are not eligible for other benefits, you will continue to receive 75 percent of base salary until age 65. However, depending on your age at the time ICI payments began, benefits may be paid until age 70.

What if I also carry private disability insurance?
ICI payments are NOT offset by disability benefits payable from a private policy.

What should I do if I need information about applying for ICI and other benefits?
We recommend that you call Employee Compensation and Benefits Services to make an appointment to ensure that you take advantage of all of the benefits you are entitled to, e.g. ICI, Wisconsin Retirement System disability, sick leave conversion credits, life insurance disability premium waivers, workers compensation, etc. Make an appointment with a benefits specialist by calling 262-1212 or at: http://www.bussvc.wisc.edu/ecbs/adm-appt-request-form-uw1305.html.

For more information?
http://www.bussvc.wisc.edu/ecbs/emp-ici-menu.html, or contact a benefits specialist, employee@bussvc.wisc.edu, 263-7556 or 262-5650.