One of the new Financial Protection Programs available for 2021 is the Long-Term Disability Plan, which provides a monthly income if an employee is unable to work due to a sickness or injury that extends beyond 90 days.
When 2021 Employer Agreements become available in mid-July, employers may select the Long-Term Disability Plan, a new benefit available for employees working at least 20 hours weekly. This new plan provides important financial protection to employees in the event of an extended sickness or injury.
The Long-Term Disability Plan is separate and different from the comprehensive disability protection provided through the Death and Disability Plan — unchanged for 2021 — which is included with Pastor’s Participation and Minister’s Choice.
The Long-Term Disability Plan provides monthly income if members are sick or injured and unable to work for more than 90 consecutive days. The benefit is up to 60 percent of effective salary, capped at $285,000 in 2020, at the time disability begins. Because the Death and Disability Plan also includes a long-term disability benefit, the two plans cannot be offered together.
The Long-Term Disability Plan is noncontributory for employees; employers pay the full cost, which is $0.35 per $100 of monthly salary. For example, for an employee earning $45,000 annually, the employer will pay approximately $13 per month. This cost will be calculated for employers in their Employer Agreement on Benefits Connect.
When offered with the Temporary Disability Plan (also new for 2021), the Long-Term Disability Plan can provide comprehensive financial protection for employees unable to work due to a disability. When the two plans are offered together, temporary disability benefits begin after a 14-day waiting period and may last up to the 90th day of a disability, when Long-Term Disability Plan benefits may begin for a continuing disability.
Here are additional features of the Long-Term Disability Plan:
For more information, or if you have questions, call the Board at 800-773-7752 (800-PRESPLAN), Monday through Friday, 8:30 a.m. to 5 p.m. ET.