Core Benefit Options

Core benefits are offered to employees at the beginning of employment. There is no annual “open enrollment” for these benefits and changes. If allowable, they are handled individually as needed.  Available core benefits include term life insurance, long-term disability and the retirement plans.

Term Life Insurance

All employees hired into benefit-eligible positions are provided coverage under the group term life insurance program. Term life insurance provides basic life insurance protection while an employee is actively working for the University.

Employees are automatically provided basic term life coverage at one and one-half times their budgeted annual salary (including summer salary if applicable). The University pays the cost of this coverage. Options offering coverage greater than one and a half times your annual budgeted salary and coverage for your dependents, are available to you to purchase via payroll deduction. 

Imputed Income: IRS regulations require that the imputed value of one and one-half times salary of term life insurance in excess of $50,000 that is provided by Purdue be reported on the employee’s W-2 form as taxable income. Imputed value is determined by an IRS table based on age.

Please visit the Term Life Insurance webpage for more information.

Long-Term Disability

This plan is currently administered by Guardian.

Long term disability (LTD) insurance provides income replacement during extended periods of disability resulting from illness or injury. LTD covers both occupational and non-occupational disabilities and provides 65 percent of the employee’s budgeted annual salary at the time of disability. 

The LTD benefit period begins after a 90 calendar-day elimination period for benefit-eligible administrative and operational support, police/fire, and skilled trades staff, and after a 180 calendar-day elimination period for all other benefit-eligible faculty and staff. Employees generally use accrued sick leave and vacation during this time.

If you are disabled and cannot work on a full-time basis, you may qualify for partial disability benefits.

Please visit the Long Term Disability web page for complete details.