The new Temporary Disability Plan offers employers greater choice and the opportunity to provide financial protection to more employees.
When employers log on to Benefits Connect to complete their Employer Agreements (through October 9), new benefits options will be available for 2021 that provide greater choice and more flexibility. These options include two new disability plans — the Temporary Disability Plan and the Long-Term Disability Plan.
The new Temporary Disability Plan provides financial protection on a short-term basis when an employee is sick or injured and unable to work. The benefit, paid weekly (after 14 consecutive days of disability), is equal to 60 percent of effective salary, up to $285,000.
Ministers in Pastor’s Participation or Minister’s Choice will automatically be enrolled in the Temporary Disability Plan. You may also offer the Temporary Disability Plan to employees who do not participate in either benefits package, as an employer- or employee-paid benefit (the cost cannot be shared between employer and employee). If you pay the cost for Temporary Disability coverage, eligible employees are automatically enrolled and disability benefits are taxable when paid. If employees pay for the coverage, they may select this benefit during annual enrollment (or when they experience a qualifying life event) and disability benefits are tax-free when they are paid.
The Board of Pensions partners with Lincoln Financial Group to offer the Temporary Disability Plan. Lincoln Financial certifies all disabilities and handles ongoing case management — providing ease of administration for employers and employees.
The disability benefits toolkit offers information and resources for treasurers, office staff, and others to administer the Temporary Disability Plan, as well as helpful information you can share with employees about this benefit.
If you have questions about the Temporary Disability Plan or selecting benefits for 2021, call the Board at 800-773-7752 (800-PRESPLAN), Monday through Friday, 8:30 a.m. to 7 p.m. ET.