Open Enrollment at work - Long Term Disability

[FiguringItOut]

Can someone please help me make sense of this.  My HR has been less than helpful.

This is what it says in our benefit guide about LTD.
Elimination Period
Benefits will begin on 91st day of Disability
LTD Benefit
60% of annual base salary up to a maximum of $10,000 per month.
Tax Choice Basis
Company pays 100% of your LTD premium unless you elect to pay the premium. If you elect to pay the premium, it will be with post-tax dollars. In doing so, your monthly will be payable income-tax free.
Maximum Payment Period
If permanently disabled before age 60, this benefit is payable up to your Normal Social Security Retirement age. If disability occurs on or after age 60, benefits will be paid according to the schedule included in the Guardian LTD Certificate of Coverage.
Own Occupation
You will receive benefit payments while you are unable to work in your own occupation until Normal Retirement Age.
Certain Offsets Apply
If you are receiving income from Social Security or state mandated Short Term Disability insurance due to your disability, LTD payments through Guardian will be offset by the amounts received.
Waiver of Premium
If you elect to pay the LTD premium yourself through post-tax payroll deductions in order to receive a tax-free benefit, your monthly LTD premium will be waived while you are collecting disability benefits.

And they give this example:
                                    Employee Pays Premium                               Employer Pays Premium
                                         (Post Tax)                                              (your benefits taxed)
Insured Earnings:                    $6,666/mo                                                 $6,666/mo
Monthly premium:                      $12.66 employee paid                              $12.66 employer paid
Monthly Benefit after tax:              No taxes = $4,000                                    25% tax bracket = $3,000
                                                   (monthly earnings x 60%)
Difference                              +$1,000 per month addition 

And then there is this: Long Term Disability premium is based on your Monthly Insured Earnings.
To calculate Monthly Insured Earnings, divide your annual earnings by 12.
Example: Annual salary $96,000
Multiplied by rate of $0.0000791 is $7.60 semi-monthly contribution.

So for the open enrollment I have an option to elect to either to have company pay LTD premiums or pay them myself with paycheck deduction.  They seem to claim that paying these premiums myself will add $1,000 to my pocket.
I can't make sense of what this is and how it actually works, what my premium is.  I get that it's calculated off my actual salary, not the $96K in the example, but what is that .0000791 multiplier? 

On my paystub there is a deduction for $7.50 per paycheck for "Life Supp".  My actual calculation would be $7.12 with my $90K salary.  So I'm not sure if these are the same things.

[Altons Bobs]

Do you need explanation of the benefits or explanation on how to get to the rates or both?

Since you asked about the rate at the end, I will attempt to dissect it, not sure if I'm right or not.

With $96,000 salary, monthly LTD benefit would be $96,000 / 12 months = $8,000.  Because LTD rates are normally calculated by per unit of $1,000 based on monthly wage, so you have 8 units.  Semi monthly is $7.60, so monthly would be $7.60 x 2 = $15.20.  So with 8 units at $15.20, each unit of $1,000 benefits would be $15.20 / 8 = $1.90.

96000 x MULTIPLIER = $7.60

96000 / 12 / 1000 x 1.90 / 2 = $7.60

So the MULTIPLIER is 1/12 / 1000 x 1.90 / 2 = 0.00007916666666666666666666666666666

[moneyandmillennials]

I think your question is whether to use use pre or post tax money for your LTD premium.

for me, I recommend using after tax money. because your be benefits wouldn't be taxed.

because if you're benefits are taxed if really isn't 60% of your income replaced, you would get more like 45% at a 25% tax (this is a oversimplified example).

[Elle 8]

...
So for the open enrollment I have an option to elect to either to have company pay LTD premiums or pay them myself with paycheck deduction.  They seem to claim that paying these premiums myself will add $1,000 to my pocket.

...
On my paystub there is a deduction for $7.50 per paycheck for "Life Supp".  My actual calculation would be $7.12 with my $90K salary.  So I'm not sure if these are the same things.

You'll only add $1000 (the taxes saved) a month IF you become disabled and need to use the benefit.  So I guess you could look at it like a $7.12 semi-monthly premium for an additional $1000 of coverage (or whatever it would come out to based on your salary and tax rate).

"Life Supp" sounds like Supplemental Life Insurance, not LTD.