VMware provides Short Term and Long Term Disability Insurance coverage to you at no cost. Short Term and Long Term Disability benefits replace a portion of your pay if you become ill, injured, or disabled and are unable to work. These plans provide you valuable income protection and can help you and your dependents when you truly need it. The disability benefits you receive under the plan are taxable. If you choose, you can pay the taxes on the premiums now rather than later when the benefits are paid. For this option, select “Benefits Check Non-Taxable” when enrolling online.
See below for a comparison between the two options:
STD/LTD – Employer Premium Benefit Check Options
|Benefits Check Taxable||Benefits Check Non-Taxable|
|When do I pay taxes on the premiums?||Now: you will be taxed via payroll deduction every pay period.||Later: your benefit payment amount will be taxed should you incur a disability claim.|
|Wage Replacement Benefit Amount||70% of pay per week (STD)
60% of monthly income (LTD)
|70% of pay per week (STD)
60% of monthly income (LTD)
|Funding and Sources of Contribution||VMware pays for the entirety of this benefit.||VMware pays for the entirety of this benefit.|
Short Term Disability (STD)
Short Term Disability (STD) provides wage replacement benefits of 70% of pay per week, offset by any state mandated disability plans or Workers’ Compensation, for your certified medical disability. Benefits begin after 7 days following your injury or illness. During the waiting period, 5 business days of accrued Sick Time  must be used. Short Term Disability (STD) covers a maximum payment period of 25 weeks.
California employees default to VMware’s California Voluntary Disability Plan (VDP)  in lieu of the California State Disability Insurance (SDI)  plan. VMware’s Voluntary Disability Plan pays 70% of pay tax-free per week. California employees can opt out of the VMware VDP plan to be covered under the SDI  plan through the California Employment Development Department. Please understand the state disability insurance plan is limited to 55% of wages. If you wish to opt out of VMware’s VDP, contact HR Source  [VMware network access required] to complete and remit an “opt out” form if you wish to be in the SDI  plan.
For more information on STD see the Short Term Disability Summary Plan Document (SPD)  or the VMware California Voluntary Disability Plan Summary Plan Document (SPD) .
Long Term Disability (LTD)
The Long Term Disability benefit is provided through CIGNA  and coverage begins the date your STD payments end or 180 days following your injury or illness. LTD provides a benefit equal to 60% of your monthly income. The minimum monthly benefit is $100 or 10% of your gross disability payment, whichever is more. The maximum monthly benefit is $15,000.
Benefits stop if you reach the end of the maximum benefit period, shown below:
Maximum Benefit Period
|Age at Start of Disability||When Benefits End|
|Under Age 60||to age 65, but not less than 5 years|
|60||after 60 months of benefits|
|61||after 48 months of benefits|
|62||after 42 months of benefits|
|63||after 36 months of benefits|
|64||after 30 months of benefits|
|65||after 24 months of benefits|
|66||after 21 months of benefits|
|67||after 18 months of benefits|
|68||after 15 months of benefits|
|69 or older||after 12 months of benefits|
For more information on LTD see the Long Term Disability SPD .
California State Disability Insurance (SDI)
California State Disability Insurance (SDI)  is another source of income replacement for California residents. You should find out whether you and/or your family qualify for disability payments from other sources, such as Social Security benefits, if you become disabled:
- If you are eligible, your STD benefits may be reduced/offset by the amount you receive or are eligible to receive from the other sources
- VMware’s disability coverage will work with other income sources (including workers compensation, Social Security, and other state-mandated disability benefits) to provide a combined benefit coverage
You may continue to receive as much as 60% of your pre-disability income from all sources combined.