providing short term disability on our own
bsaxton
12 Posts
We'd like to provide Short term disability for our employees, but rather than go through an outside provider, just fund it ourselves. Any tips for creating this type of policy?
Our LTD kicks in at 90 days, so we'd provide the STD for up to 90 days....other than deciding the amount of pay employees are eligible for and any waiting period, what else would we need to have in the policy? Any samples would be greatly appreciated. Thanks!
Comments
Successive periods of disability-so if same reason for the initial STD returns within a certain period of time after returning to work FT (how many days?) is it considered the same STD leave period; Does PTO/Vac/Sick benefits continue to accure-this should mirror what your other leave plans indicate; ERISA Rights; What documentation must be provided for STD & within what time frame.
General requirements and procedures. Employees who have completed three months of service are eligible for short-term disability benefits in the event of an illness or injury that prevents them from working. Short-term disability benefits begin after the employee has exhausted any accrued sick leave, personal leave, or vacation time. If the disability results from an illness, the employee must be absent five working days before benefits begin. If the disability results from an accident or requires hospitalization, the five-day waiting period is waived. Employees claiming short-term disability benefits must be under a doctor's care.
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Benefit payments. Short-term disability benefits are 75 percent of the employee's “average earnings,”up to a maximum of $500 a week. Average earnings include any bonus payments, overtime premiums, and commissions normally earned by an employee. Each employee's average earnings are computed over the 26 weeks immediately preceding the disability. If the employee does not have 26 weeks of service with EMPLOYER, average earnings are computed over the employee's entire length of service. If the employee receives any other disability payments—for example, workers' compensation or state disability insurance benefits—short-term disability benefits are reduced dollar-for-dollar for those benefits. Short-term disability benefits are paid biweekly.
Duration and medical certifications. Short-term disability benefits continue for the length of the disability, for a maximum of 26 weeks. Employees who are still unable to return to work after 26 weeks might be eligible for long-term disability benefits. Employees must remain under a doctor's care for the duration of benefits and must submit a monthly medical certification of their continuing disability. Employees on short-term disability cannot engage in any other employment and are expected to refrain from other activities that might delay their recovery and return to work.
Short-term disability benefits for pregnant employees. Employees unable to work due to pregnancy or pregnancy-related conditions are eligible for short-term disability benefits on the same basis as any other disability. Benefits are payable for the period that the employee's doctor certifies that she is medically unable to work, up to a maximum of 26 weeks.
Return to work. Employees are required to return to work as soon as they are allowed to by their doctors. Employees who return to work within 26 weeks are guaranteed the same or equivalent job held when they began their disability leave. EMPLOYER attempts to accommodate employees released by their doctors for light duty.
Summary plan description. Employees who have questions or would like additional information about EMPLOYER's short-term disability program should contact the Human Resource Department. More information also is available in the short-term disability Summary Plan Description, which can be obtained from the Human Resource Department.