Income Continuation Insurance

Plan Summary

The Income Continuation Insurance (ICI) program is an “income replacement” benefit plan that provides up to 75% of your gross salary (based on a maximum salary of $120,000/year) if you become ill or injured and you are unable to work.

The ICI plan is administered by the Department of Employee Trust Funds (ETF) and claims are processed by Aetna.

If you file an ICI claim, benefit payments will begin after you meet your designated waiting period or use of your sick leave up to a maximum of 1040 hours, whichever is longer.

  • Classified employees have a 30 day waiting period.
  • Faculty, Academic Staff, and Limited appointees may choose a 30 day, 90 day, 125 day or 180 day waiting period.

Eligibility

You must meet the following requirements to be eligible for this plan:

  • Have at least six months of coverage under the Wisconsin Retirement System (WRS),
  • Be under age 70 at the time initial eligibility, and
  • Are not receiving a Wisconsin Retirement System annuity.

How to File a Claim

You may file a claim up to 30 days before your anticipated last day worked but no more than 12 months after the first date of disability. Contact Aetna at 1-800-960-0052 to begin your claims process. See the ICI Plan Brochure for more information.

Enrollment

Initial Enrollment

  • It is recommended that you enroll via eBenefits or submit a paper application within the first 30 days of employment.
  • You can submit a paper application at any time until 30 days after the 1st of the month following the completion of 6 months of coverage under the Wisconsin Retirement System (WRS).
  • Unclassified Faculty, Academic Staff and Limited appointees may also submit an application to enroll at any time until 30 days after the completion of 1 year of state/UW service under the WRS.
    • If you elect to have your coverage effective after 6 months of WRS service, you will pay the total premium for the first 6 months of coverage (not eligible for employer contribution).
    • If you elect to have your coverage effective after 1 year of state/UW WRS service, you will be eligible for the employer contribution towards your premium.
  • Once WRS service requirements are met, coverage is effective on the first of the month on or following receipt of your application either through eBenefits or paper application.

Deferred Enrollment

If you do not enroll when initially eligible, you may have an opportunity to enroll once your sick leave balance reaches certain levels.

Classified Employees

ICI premiums are based on your earnings and premium category (category 1-6), which is based on your sick leave balance. As your sick leave balance increases, your premium will go down.

You will be given a chance to enroll in ICI the first time you are eligible for:

  • Premium category 3 (accumulate at least 80 hours of sick leave during year - prorated if part-time)
  • Premium category 4 (have 520 hours of sick leave at end of year)
  • Premium category 5 (have 728 hours of sick leave at end of year)

You will be given a chance to enroll in ICI in any year (Premium category 6):

  • You have at least 1,040 hours of sick leave at the end of the year.

Your institution will notify you of your eligibility and you will be required to submit an enrollment application by January 30th of the next year.

Unclassified Faculty, Academic Staff and Limited appointees

You will be given a chance to enroll in any year you have at least 1,040 hours of sick leave at the end of the year. Your institution will notify you of your eligibility and you will be required to submit an enrollment application by January 30th of the next year.

Medical Evidence of Insurability

If you do not enroll when first eligible, you may apply for coverage at any time through Medical Evidence of Insurability (acceptance not guaranteed). Coverage is effective on the first of the month on or following the approval of your application by the plan’s underwriter.

Coverage

If unable to work due to disability, the ICI program provides payment to you of up to 75% of your earnings (based on a maximum salary of $120,000/year).

The ICI program has two different levels of coverage.

  • Standard ICI covers the first $64,000 of earnings. You may enroll in the Standard ICI coverage if your annual salary is $64,000 or less. You may also enroll in the Standard ICI coverage if your annual salary is above $64,000, but your ICI benefits will be based on an annual salary of $64,000.
  • Supplemental ICI covers earnings between $64,001 and $120,000. You will only be given an opportunity to enroll in the Supplemental ICI coverage if your annual salary is $64,001 or more. Even if your annual salary is over $120,000, the maximum ICI benefit is based on an annual salary of $120,000.
    • You may only enroll in the Supplemental ICI coverage if you are first enrolled in the Standard ICI coverage.
    • If you do not initially qualify for the Supplemental ICI coverage then you will be provided an enrollment opportunity the year you qualify and every subsequent year you qualify (if enrolled or enrolling in the Standard ICI coverage).
    • If you are enrolled in Supplemental ICI coverage and your annual salary goes below $64,001, your Supplemental ICI coverage will terminate.

When Benefits are Payable

Your ICI benefit will begin after you exhaust your sick leave, up to a maximum of 130 working days or serve your elimination period, whichever is longer.

Classified employees have a 30-day elimination period. Unclassified Faculty, Academic Staff and Limited appointees select an elimination period of 30, 90, 125, or 180 days.

The elimination period begins on the first full day that you are continuously and completely absent from work due to disability. If you return to work during your elimination period, even to perform incidental work at your employer’s request, your elimination period may be extended. Before performing any work during your elimination period you should discuss the issue with your claims representative at Aetna.

Premiums

Use the Income Continuation Insurance Premium Calculator to calculate your premium.

Classified Employees

Premiums for Classified employees are based on the amount of sick leave hours that you have accumulated at end of the year and your annual salary. The more sick leave hours you retain, the lower your premium. Sick leave balances and your annual salary are evaluated at the end of every calendar year and premiums are adjusted the following February.

Classified LTE's will always be in Premium Category 1 since you do not earn sick leave.

Premium Category 4, 5, and 6 are considered permanent plateau categories. Once you reach a plateau category you will never drop to a lower category even if your sick leave balance falls below the category’s threshold.

Permanent Premium Plateaus
(Hours of unused sick leave at the end of any calendar year)
HoursCategory

520 hours

Premium Category 4

728 hours

Premium Category 5

More than 1,040 hours

Premium Category 6

Unclassified Faculty, Academic Staff, and Limited Appointees

Premiums for Unclassified Faculty, Academic Staff and Limited appointees are based on the waiting period that you choose and your annual salary. You may choose between a 30, 90, 125, or 180 day waiting period. The longer the waiting period, the lower the premium.

You may increase your waiting period at any time. You may only decrease your waiting period by applying through Medical Evidence of Insurability (acceptance not guaranteed).

Your annual salary is evaluated at the end of every calendar year and premiums are adjusted the following February.

Forms & Publications

  • Application - Complete and submit to your institution’s benefits office to enroll in the plan.
  • Medical Evidence of Insurability - Complete and submit to ETF if you want to apply for coverage or decrease your waiting period through Evidence of Insurability. Your benefits office must complete the Employer Section before it is submitted to ETF.
  • Sick Leave Usage During Disability Claim (UWS-430) - Complete this form only if you are applying for a WRS Disability annuity (40.63), a Long-Term Disability Insurance (LTDI) benefit or a Duty Disability benefit at the same time you are applying for an ICI benefit.