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What if you need to Terminate an Employee on Long Term Disability?

An Employee's resignation or termination does not affect their Long-Term Disability (LTD) claim or its processing. If the Employee is no longer employed when they begin the application process, they may still be eligible, provided they were an active contributing member of the Arizona State Retirement System (ASRS) as of the potential date of disability. 

If the LTD claim is approved and the Employee begins receiving LTD benefit payments, they will continue to accrue ASRS service credit toward their retirement.

In cases where the Employee has been terminated, the Employer must still provide the Employee with the LTD claim packet. The Employer should adhere to the standard procedures for sending, tracking, and submitting both the Employee and Employer claim packets.

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