Long-Term Disability coverage normally covers employees disabled due to an illness or injury until they reach age 65. However, the plan provides limited coverage for those disabled at or after age 60:
Age When You How Long Benefits Continue
Become Disabled
Before 60 To age 65, but not less than 60 months
60 to 64 60 months
65 to 67 To age 70
68 and older 24 months
As you near retirement age, you should consider whether you want to continue paying premiums for Long-Term Disability coverage. Once you are eligible for retirement, if you become disabled, you could simply retire a little earlier than planned and begin drawing your TRS or ORP benefits. This would result in a lower TRS monthly retirement benefit or ORP account balance, but the amount of difference will vary with your circumstances.
Under both plans, the longer you work, the higher your retirement benefit. That's because you pay into the plan over a longer period. Also, if you have pay increases during that time, your TRS benefit will be based on a higher final average pay or your ORP balance will be based on higher contribution amounts.
If you are in TRS, your monthly benefit is also reduced for early payment unless you meet certain age and service requirements. That's because your benefit will be paid over a longer period if you start receiving payments early. Under ORP, your account balance will have to stretch over a longer retirement period if you retire earlier than planned.
Before dropping your LTD coverage, you should consider the cost of premiums compared to the effect on your retirement benefits should you retire early. Your individual circumstances will determine what strategy will be best for you. 