Don't Let Disability Derail Long-Term Financial Security: Enhancing Retirement Security in a DC World

Long-term disability (LTD) protection, such as a defined contribution (DC) disability supplement, is critical for good long-term security in a DC environment. For those with a strong LTD program already in place, this challenge can be addressed by providing a DC disability benefit that replaces DC contributions during periods of LTD. If there is no LTD program, that is needed first. Appropriate disability coverage is vital if the DC system truly is to deliver long-term retirement security. This article discusses issues in achieving such coverage and provides ideas to help in developing programs. Few such programs exist today, but it is hoped that this article will encourage more employers to adopt them.