The Monthly Retirement Plan Waiver Benefit

The Monthly Retirement Plan Waiver Benefit is a special feature of the LTD Plan for those who participate in the Boston University Retirement Plan. This feature provides for the LTD Plan to pay the University’s core contributions to your Boston University Retirement Plan account while you are receiving payments from this plan. In this way, the plan allows your Boston University retirement benefits to accumulate even while you are receiving a disability income. The contribution will continue to be made for you for the duration of the disability if you qualify for Social Security Disability Income (SSDI). If you do not qualify for SSDI, the contribution will continue for the first five years of your disability.

How the Monthly Benefit Works

Unless you notify Human Resources that you want to make a change, your waiver benefit contributions to your Retirement Plan account will continue to be invested with the same investment option(s) that you were using before becoming disabled. The Claims Processor will forward the monthly benefit to the Plan Administrator to deposit with the investment of your choice. You can change your investment choices for future waiver benefit contributions at any time by notifying the investment sponsor directly.

The monthly waiver benefit equals the University’s core contribution. In addition, on July 1 following the first 12 months during which you have received disability payments, the amount of your waiver benefit contributions is increased by 3%. These increases apply on each subsequent July 1 for the first 5 years of disability and then stop. The Monthly Retirement Plan Waiver Benefit does not apply to any payments you were making.

For more information about how the Monthly Retirement Plan Waiver Benefit operates, you should contact Human Resources.