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Louisiana Tech University


Policies & Procedures

Policy 1422 - Benefit Plans

WWW Posting Date: 1/15/2002

Responsible Office: Department of Human Resources

Reference: State Employees Group Benefits Program


Group Health Insurance

University faculty and staff employees are covered by the State Employees Groupfs Benefits Program (self-insured). This plan is optional with the University paying one-half of the total premium. For more detailed information, see the State Employees Group Benefits Program plan document.

Group Term Life Insurance

University faculty and staff employees are eligible for coverage under this plan with a maximum face amount of $40,000. This is an optional plan with the University paying one-half of the total premium. Actual amounts are based on contract salary/civil service pay schedule.

Supplemental Group Term Life Insurance

University faculty and staff employees are eligible for amounts up to $200,000 of term life insurance. Employees may elect amounts of one, two, or three times their annual earnings. Amounts up to $100,000 are guaranteed issue with no medical information needed for new employees who enroll within thirty days of employment.

Salary Continuation (Long-Term Disability) Insurance

This coverage is mandatory for all faculty and unclassified staff employees. Program will pay up to 60% of salary for permanent, total disability.

Long-Term Care Insurance

Long-term care is assistance needed by an individual who is unable to care for him/her/herself because of a prolonged illness or disability. Assistance can vary from help with daily activities at home such as bathing and dressing to skilled nursing care in a nursing home. In this voluntary program, the employee elects the amount of coverage based on individual need.

Flexible Fringe Benefits Plan

Commonly referred to as a "cafeteria plan," faculty and staff are allowed to tax-shelter payroll contributions to fringe benefit plans under Section 125 of the Internal Revenue Code. Participation in this program results in a reduction of taxable income which increases spendable (net) income.

LA Capitol Federal Credit Union

Louisiana Tech employees are eligible for membership in the LA Capitol Federal Credit Union. "LA Cap" serves more than 30,000 members from seven offices throughout Louisiana and is a cooperative, member-owned financial institution. It is a Federally chartered credit union with accounts insured by the nation's strongest Federal insurance fund, the National Credit Union Share Insurance Fund.

Benefits available for members include savings and checking accounts, investment opportunities through Money Market, 91 Day and Thrifty Saver Certificate Accounts (CD's), Individual Retirement Accounts (IRA's), and discount stock brokerage service. TEL-a-CAP, a free day or night telephone transaction service, is available along with direct deposit services for members with checking accounts.

Loan opportunities include LA Cap's Instead VISA, Cash a'LA Cap signature loans, new or used car loans, SPELL education revolving credit, and real estate loans (first and second mortgages).

These benefits along with many other extra services are available by calling the Ruston LA Capitol Federal Credit Union Office at 251-4140. Office hours are Monday through Friday, 9:30 a.m to 4:45 p.m.

Other Benefit Plans

Group accident, dental, and cancer plans through payroll deduction are available for full-time employees. The faculty/staff member pays the full insurance premium for these programs.

Tax Deferred Annuities

Faculty and staff members of public Colleges and Universities are eligible to purchase tax-deferred annuities. To purchase a tax-deferred annuity, the employee and the University enter into an agreement in which the employee authorizes a reduction in salary in order to release funds for the University to pay an annuity contract that is fully vested in the employee.

Within limits prescribed by the Internal Revenue Code, the amount of the reduction is not currently taxable as income to the employee. More information can be obtained from the Department of Human Resources.


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