Statutory Disability (DBL & TDB)
Employer’s may provide Long Term Disability protection to their employee’s on either a contributory, non contributory or voluntary basis. If an employee is in able to perform the material and substantial duties of his/her regular/own occupation due to sickness or injury and he/she has a 20% or more loss in monthly earnings due to the same sickness or injury Long term Disability protection is there to assist the employee with loss of wages he/she may incur during this hardship. As with Short Term Disability there are several plan designs such as 59%, 60%, and 70% to a monthly maximum as high as $10,000 per month. There is a waiting period for Long Term Disability such as a 90 day or 180 day, even longer. Usually an employee will be on Short Term Disability and then if needed the Long Term Disability will kick in after the STD is exhausted. There are several definitions of disability options. For example – Your Insurance Carrier will protect your employee with a 3 Year Own Occupation definition of Disability by continuing to pay benefits for 36 months as long as the employee is deemed disability. You can have an “Any Occupation Definition”. If there is a 36 month definition of disability an employee will continue to receive benefits beyond the 36 months is he/she is also working in any occupation and continues to have a 20% or more loss in monthly earnings due to his/her sickness or injury or not working and due to the same sickness or injury, he/she is unable to perform the duties of any gainful occupation for which he/she is reasonably fitted by education, training or experience. Long Term Disability is also payable to age 65 own occupation periods up to the maximum retirement age – ADEA and will be integrated with Social Security either by Primary or Family offsets.