Over the summer we shared some of our brokers’ top questions regarding the upcoming changes to New Jersey’s Temporary Disability Insurance, whose answers were still to be determined. Now that we are well into fall and with 2020 approaching quickly, we wanted to put out a quick update to those outstanding items.
While many of the questions have been resolved by now, a number of them are yet to be determined. Subscribe now to stay in the know.
Here are the answers we do have:
When will the State of NJ release the “Notice of NJ Employee Contribution Rate Change” and “Notice of NJ TDB Rates” memos?
NJ's Department of Labor and Workforce Development issued their notification of the 2020 contribution rates to insurance carriers in mid-September – for both benefit periods in 2020 (first and second half of the year as the benefit is scheduled to go up again mid-year).
What’s different about the Temporary Disability Insurance rate calculation this time?
In previous years, the State of New Jersey would develop a rate based on historical experience. 2020 is different because the actuaries have performed a look forward to assess the costs of the mid-year benefit changes on 7/1/2020.
Does the increase in wage cap apply only to employee contributions or to both the employee and employer contributions?
While both the employer and employee wage caps are increasing, they are not increasing at the same level. For the first time, the State of New Jersey is applying separate wage caps for the employer and employee.
How will insurance carriers build the Temporary Disability Benefit changes into their policies?
We are able to issue a rider or new endorsements reflecting changes. ShelterPoint will be filing revised policy documents sometime in the future.
Anything else that might be impacted as a result of the changes?
The State of New Jersey is working closely with claimants and their approved private plans to ensure a smooth transition to the new benefits and program changes. We will be sure to keep you informed as the State continues on its implementation path.
We are waiting for answers for all the rest of these questions from our original post. They are all to be determined as we wait for guidance from the State of New Jersey:
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When will New Jersey be able to accept electronic submissions of Temporary Disability Insurance applications (form DP-1)?
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Will there be changes to New Jersey’s current DP-1 form?
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Will New Jersey be providing 2 memos for 2020 given the mid-year change in benefits?
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Should my clients expect two posting notices for 2020.
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Based on the wage cap increasing on 1/1/20, will taxability on claims be set at the employer level or claimant level?
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Have more questions? Email us at tdiquestions@shelterpoint.com.
The information included in this blog post contains forward-looking statements. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Any TDI information is as of the blog post’s date stamp; it is based on the applicable statutes and regulation, and may change as regulations evolve or New Jersey issues guidance regarding its Temporary Disability Insurance regulations. Have more questions? Email us at tdiquestions@shelterpoint.com
The information in this post is not intended as an offer of coverage (“Invitation to Contract”). It is for illustrative purposes only, providing a general overview of the services described. It is not a contract. Available in NJ only. The Temporary Disability Benefits (TDB) Law (Temporary Disability Benefits law (P.L.1948, c.110 (C:43-21-25 et seq.) governs this private plan and its interpretation and administration. All coverage extends up to TDB Law limits reflected in this policy. Please refer to the policy and TDB law for coverage details, a complete listing of covered services, provisions, conditions, exclusions, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and applicable TDB Law, the policy and TDB Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages. Policies have a statutory 7-day waiting period.
Underwritten by:
ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: NJ (form# TDB-P-NJ)