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AI-generated content may be incorrect."></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt">February 23, 2026<o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt"><o:p> </o:p></span></b></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt">To: <o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt">Department Benefits Representatives (DBRs)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;line-height:115%">From: <o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt">Central HR Benefits Office on behalf of UC Office of the President<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;line-height:115%">Re: <o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt">Lincoln Financial Group (LFG) 2026 Taxability of Benefits</span></b><span style="font-size:11.0pt"><o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:11.0pt">_____________________________________________________________________________________________________<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt">DBRs, please share this information via your internal listserv.
<u>Do not reply to this email.</u> Please</span></b><span style="font-size:11.0pt"><o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:11.0pt">send a separate email with questions to
</span></b><a href="mailto:benefits@ucr.edu"><b><span style="font-size:11.0pt">benefits@ucr.edu</span></b></a><b><span style="font-size:11.0pt">.</span></b><span style="font-size:11.0pt"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;line-height:115%"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;line-height:115%">The UC Lincoln Financial Group Disability Program offers both employer and employee‑paid benefit plans. Tax implications for these benefits depend on whether UC or the employee pays the premiums.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt;line-height:115%">• <b>Basic Disability</b> – UC pays premiums. Benefit payments are generally taxable.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;line-height:normal">
<span style="font-size:11.0pt">• <b>Voluntary Short- and Long‑Term Disability</b> – Employees pay premiums on an after-tax basis. Benefit
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;line-height:normal">
<span style="font-size:11.0pt"> payments are generally not taxable.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;line-height:normal">
<span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;line-height:115%">The Basic and Voluntary Short‑Term Disability (VSTD) plans provide benefits for up to six months. When an employee is enrolled in both the VSTD and Basic disability plans, benefits from both
plans are usually paid concurrently, with Lincoln Financial Group issuing a single consolidated payment. Each year, LFG adheres to IRS guidelines to determine the taxable portion of disability benefits. For 2026, 13.94% of disability payments will be subject
to taxes when employees receive both Basic and VSTD benefits at the same time — a reduction of 6.38% from 2025.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;line-height:115%">Please contact the Lincoln Financial Group case manager by phone or email with questions about taxes withheld from disability benefit payments.<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;line-height:115%"><img border="0" width="455" height="187" id="Picture_x0020_1" src="cid:image002.png@01DCA4AB.2E064D00"></span><span style="font-size:11.0pt;line-height:115%"><o:p></o:p></span></p>
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