Payroll and Employee Benifits

Income Protection Bank

Income Protection Bank (IPB)

Each employee has an Income Protection Bank (IPB) where he/she may elect once a year to deposit up to 40 hours of his/her accrued Paid Time Off (PTO) by requesting in writing that such transfer be made. The purpose of the IPB is to help protect an employee from loss of income when he/she suffers from a serious illness or injury, and in a more limited way, to provide some additional paid absence hours to tend to some non-serious health conditions. An employee may only utilize the IPB while on personal FMLA; EPSLA; the first seven calendar days of disability due to an on-the-job injury absence; or with the submission of the appropriate medical certification form, up to 32 hours IPB per fiscal year may be used for non-serious illnesses or injuries of the employee or his/her family. IPB must be utilized in blocks of no less than four (4) continuous hours.

In August 2005, each employee's existing sick leave balance was automatically transferred to his/her Income Protection Bank. There is no maximum number of hours an employee may accumulate in this bank. Upon resignation, two-thirds (2/3) of this IPB account will be paid in a lump sum in the employee's last paycheck. Upon the employee's death or retirement (which qualifies for Retirement Status), eighty percent (80%) of this IPB account will be paid in a lump sum in an employee's last paycheck. In the case of discharge, no IPB is paid.

Short-Term Disability Plan (STDP)

The purpose of the STDP is to help protect an employee from loss of income when he/she suffers from a serious illness or injury. Beginning on the 8th continuous calendar day of disability due to an employee's own personal illness or injury, STDP may be applicable. STDP may continue for up to 26 continuous weeks if the absence is properly supported by medical verification to the satisfaction of the plan administrator (our insurer). Once the first STDP check is issued, an employee may not continue to receive pay from his/her PTO or IPB during that period of disability.

When an employee is eligible to receive benefits under the plan, he/she must submit a claim to the plan administrator. CIGNA is the plan administrator; their phone number is 1-800-362-4462. Claims may be filed beginning with the first day of absence but no later than 90 days after the date of loss for which the claim is made.

The weekly benefit is equal to 80% of 103% of the employee's hourly rate times 40; an employee who returns to work mid-week will have his/her weekly benefit prorated for that week. The plan administrator will mail checks directly to the employee's home address.

Coverage is effective the first of the month following satisfactory completion of an employee's probationary period. 

STDP is the method by which an employee is compensated and is not of itself an excused leave of absence from work. An employee should also apply for the appropriate leave of absence with University Human Resource Services.

Long-Term Disability Plan (LTDP)

The purpose of the LTDP is to help protect an employee from loss of income when he/she suffers from a long-term serious illness or injury. Beginning with the 27th continuous week of disability due to an employee's own personal illness or injury, an employee on STDP will be transferred to LTDP.

LTDP benefits are paid monthly rather than weekly, and the benefit is equal to 60% of 103% of the employee's hourly rate times 40. Contact our Payroll and Employee Benefits office at 285-8461 or CIGNA at 1-800-362-4462 for more information.

LTDP is the method by which an employee is compensated and is not of itself an excused leave of absence from work. An employee should also apply for the appropriate leave of absence -- Extended Personal Sick Leave of Absence (EPSLA) -- with University Human Resource Services.

Payroll and Employee Benefits
Administration Building (AD), room G29
2000 W. University Ave.
Muncie, IN 47306

Hours: 8 a.m.-5 p.m. Monday-Friday
Phone: 765-285-8461
Fax: 765-285-6612
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