Want to Privatize TDI Coverage in NJ? Here is What You Should Know!
The New Jersey Temporary Disability Benefits Law allows employers in NJ to provide TDI coverage to their employees through an approved private plan—instead of the State Plan. Though employers always had this option, privatizing TDI has gained a lot of popularity after an important amendment in the law that now prevents employers from obtaining employees' consent. Now, you can:
Enjoy Better Benefits
Employers can now shop for private TDI plans in the open market and enjoy better benefits. They can make significant savings, nearly up to 20% (depending on the plan). They can even pass on the benefits to employees, ensuring employee retention.
Get Access to A Wide Range of Options
Unlike just one State Plan that you were earlier forced to choose, you can now get a lot of options in private plans. Such plans may be contracts of insurance issued by authorized carriers, by you as a self-insurer, or by agreements between you and the union.
Prevent Yourself from Contributing to State Disability Benefits Fund
Covered employers with private plans, as well as their workers, are relieved of contributions to the State Disability Benefits Fund.
It’s extremely important for employers to clearly understand the requirements for the privatization of TDI benefits so they don’t end up committing any costly mistakes. If you are planning to make the big move, here is what you should know-
Private Plans vary from carrier to carrier. Make sure you write your TDI policy through the best disability insurance company. Private Plans have to liberalize the State Plan in terms of benefits, eligibility requirements, and payment duration.
The cost to the employees cannot be more than for State Plan coverage.
Note- An important thing to note is no matter which disability insurance companyyou choose for a private plan, the plan must be approved by the Division of Temporary Disability Insurance.
Have questions? We will be happy to answer! Give EZTDB a call today!