You must use all of your accrued leave before your disability payments begin. This includes all sick, annual, and any compensatory leave. Any accrued leave that extends beyond the STD benefit start date will be an offset to the STD benefit. You will not be paid from two different sources for your disability. Your disability payment will begin after your pay from any accrued leave ends.
Every employee’s situation is different. Consider how much accrued sick and annual leave you have when deciding whether to purchase Short Term and/or Long Term Disability Insurance.
Example: You chose Option A for your STD policy. This means your Elimination Period is 14 calendar days. The Elimination period is the amount of time you must wait before your STD benefit will start. Your benefit is 60% of your gross annual base salary, and the duration of your STD benefit is 26 weeks.
Now let’s say that you have 20 days of accrued annual and sick leave, and your gross weekly salary is $1,250. You are approved for disability starting Monday, October 30, 2017 and you plan to be out of work for 26 weeks.
You begin receiving your 20 days of accrued paid leave ($1,250/week) starting October 30, 2017. The first 14 calendar days are counted toward your elimination period, and you will continue to receive 100% of your pay ($1,250) per week. The STD benefit start date is November 13, 2017, but for the first six days after the STD benefit start date, you would continue to receive 100% of your pay because of your accrued leave time. Then, on November 19, 2017 the 20 days of accrued paid leave has been exhausted so you would begin to receive your 60% STD benefit, which is $750 per week. You would continue to receive $750 per week until May 18, 2018 (November 13-May 18, which is 26 weeks)