Private Plan Requirements

The Temporary Disability Benefits Law allows employers the option of choosing to establish a private plan for the payment of temporary disability or family leave insurance in place of paying benefits under the State Plan. All private plans must be approved by the Division of Temporary Disability and Family Leave Insurance before they become effective. Private Plan Operations is responsible for the approval process. This office also oversees the administration of private plan policies and the processing and payment of private plan benefits.

At a minimum, approved private plans must meet the basic provisions required of State Plan. Under a private plan:

• Benefits paid must be at least equal to the amount that would be paid on a State Plan claim.
• Eligibility requirements cannot be more restrictive than they would be for a State Plan claim.
• Coverage must be at least equal to that offered by the State Plan.
• Neither the employer, nor their workers are required to contribute to the State's Temporary Disability Insurance Trust Fund while the private plan remains in existence. The cost to the worker for the private plan cannot be more than it would be under State Plan.
• A written election must be held, unless waived, if the plan is contributory and covers members of a Collective Bargaining Agreement.  A majority of employees must agree to the plan prior to the effective date of the plan.