Group Long-term Disability
This benefit is usually paid for by the employer, although some insurance companies offer it on a voluntary basis, where an employer doesn’t offer employer paid coverage. Waiting periods usually are either 90 or 180 days and benefit percentages range from 40% to 70% of wages. Wages can be defined in many ways. An employer may use the amount on a W-2, K-1, or a schedule C. Wages may or may not include commissions, overtime, pension contributions, and/or amounts over a certain level of income. Additional benefit riders may include, social security offsets, cost of living, residual disability, catastrophic (needing assistance to perform essential daily living activities) etc.
The definition of disability can vary widely by company and class of business. Definition of disability and earnings levels may separate classes of employees. As an example, officers may be offered a definition of to age 65 “your occupation” as opposed to 2 years for all other employees. Definitions can be specific, as insuring the specialty within an occupation (physician/surgeon). Each company is different and only a few companies specialize in the physician, healthcare, and professional service marketplace.
Group Short-term Disability
Short-term disability is offered on an employer paid or voluntary basis. The most popular method is a percentage of salary, even though a flat benefit amount is most commonly used for voluntary plans. It is usually non-occupational and is written in coordination with statutory New York State Disability Benefits Law Insurance. Waiting periods are usually 7 or 14 days and benefit periods are rarely longer than 6 months. Benefit percentages (percent of wages) range from 40% to 70%. The maximum weekly benefit level is usually $1,000 and may be higher for some professionals and very large employers. Some benefit riders are available, but far fewer than with group long-term disability insurance.
New York Statutory Disability Benefit Law Insurance
New York is one of a handful of states that require employers to provide disability benefits coverage to employees for an off-the-job injury or illness. Coverage for disability benefits can be obtained through a disability benefits insurance carrier who is authorized by the New York State Workers' Compensation Board to write such policies.
Disability benefits are temporary cash benefits paid to an eligible wage earner, when he/she is disabled by an off the job injury or illness. Medical care is the responsibility of the claimant. It is not paid for by the employer or insurance carrier. Cash benefits are 50 percent of a claimant's average weekly wage, but no more than the maximum benefit allowed, currently $170 per week (WCL §204).
Benefits are paid for a maximum of 26 weeks of disability during a 52 week period. For employed workers, there is a 7-day waiting period for which no benefits are paid. Benefit rights begin on the eighth consecutive day of disability. An employer must supply a worker who has been disabled more than seven days with a Statement of Rights under the Disability Benefits Law (form DB-271S)), within five days of learning that the worker is disabled .
An employer is allowed, but not required, to collect contributions from its employees to offset the cost of providing benefits. An employee's contribution is computed at the rate of one-half of one percent of his/her wages, but no more than sixty cents a week.
If an employee has more than one job at the same time, with combined wages of more than $120 per week, the employee may request each employer to adjust the contributions in proportion to the earnings of each employment. The combined contributions may not exceed 60 cents per week. The request should be made as soon as the employee enters a second job.
