Requirements for Privatizing Temporary Disability Insurance (TDI) in NJ — What Employers Should Know
Though New Jersey’s Temporary Disability Benefits Law, after the Feb 2019 amendment, has made it easier for employers in NJ to opt for a private TDI plan instead of sticking to the State Plan, it’s extremely important for employers to clearly understand the requirements for privatization of TDI benefits so they don’t end up committing any costly mistakes. Before you start shopping for the best disability insurance for small business in NJ for the payment of temporary disability benefits, here are a few important things that you should know—
Approval - Before they become effective, all private TDI plans are approved by the Division of Temporary Disability Insurance.
Benefits - Benefits paid cannot be less than the amount that would be paid on a State Plan claim.
Eligibility - Eligibility requirements must not be more restrictive than what is set for a State Plan claim.
Coverage - Coverage cannot be less than what is offered by the State Plan.
Cost - The cost of the private plane to the employee cannot be more than it would be under the State Plan. If you are asking employees to contribute towards the cost of your chosen plan, prior to the effective date of the plan, a written election must be held and a majority of employees must agree for the payment.
Contribution to State’s Trust Fund -Till the time a private plan remains in existence, neither the employers nor their employees are required to contribute to the State's Temporary Disability Insurance Trust Fund
Administration of Private TDI Plans
Private Plan Operations is the department responsible for the administration of private TDI plans. It takes care of the approval process, processing, and payment of temporary disability benefits.
Let EZTDB Write Your Private TDI Plan
The Feb 2019 amendment in New Jersey’s Temporary Disability Benefits Law has opened the gates to new possibilities for employers in NJ. They are no longer required to take their employees’ consent to buy a private TDI plan, can now choose from different insurance carriers to find a plan that best suits their requirements, enjoys better rates and services, save big on premiums, and provide better benefits to their employees.