Employer over deducted LTD premiums for members with irrevocable reduced load

Members who have been, and are currently, on irrevocable reduced load (IRL) should be aware of a recently uncovered problem with long-term disability (LTD) deductions negatively impacting some members on IRL. Members on IRL are supposed to have LTD deductions taken off their IRL-level pay equal to the relevant LTD deduction rate times the reduced-level IRL salary, up to the maximum salary for LTD premium deductions. The YUFA Pension Committee has recently discovered that Pension and Benefits has been over-deducting LTD premiums for those on IRL at IRL salaries below the maximum salary level for at least some portion of those members' time on IRL. Often this has occurred when a member's 100% level salary is above the maximum LTD deduction level -- with maximum deductions being taken even though the correct LTD deduction is lower. Such over-deductions have occurred, for some part of the IRL period, in every case that has been investigated of members with IRL salaries below the maximum LTD deduction level.  An Excel spreadsheet prepared by the YUFA Pension Committee is now available that can be used by members on IRL to determine whether or not they have also suffered such LTD over-deductions. Please contact [email protected] for more information and for assistance.