Pub. 12 2013-2014 Issue 2

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s 29 new jersey auto retailer w w w . n j c a r . o r g Employers automatically participate in the State TDB plan, unless they elect coverage through an approved private plan. The Statemust approve all such plans. Only those carriers that are on file with the State of New Jersey as an approved insurance carrier for New Jersey TDB will be accepted. The private plan cannot be more restrictive, offer lower benefits, or require more employee contributions than the State plan. A TDB plan can only move from the State on calendar quarters: January 1st, April 1st, July 1st, or October 1st. The State must be notified of the potential move prior to the effective date of the move. The employer must complete the State’s form AC-174. If employee contributions are to be continued, an election must be held and 50% plus one of the employees covered must agree to the private plan on a consent form. NJCARhas recently introducedaShort TermDisabilityprogram, un- derwritten by The Standard that offers many benefits to its members. If a dealership obtains a quote and chooses to sign with the NJ CAR plan, the Coalition’s partners will mail the original consent form and AC-174 to the State of New Jersey on the employer’s behalf, as well as mail a copy of the prepared TDB policy andNotice of Compliance to both the State and the dealer. The dealer must post the Notice in a conspicuous location at the dealership. Once all documents have been approved, the State will issue a Certificate of Approval and assign a private plan number. Voluntary Disability Insurance Can Provide Coverage To Protect Employee Income Voluntary disability insurance provides benefits over and above basic health insurance, offering eligible employees income protection in- surance in the form of benefits that partially replace income lost as a result of a disabling non-occupational accident or illness. When such an event takes away the ability to bring home a paycheck, voluntary disability insurance coverage can help fill the gap as payments may be used for any purpose. Long-term income protection insurance coverage is available at com- petitive group rates and is just one of several advantages of LongTerm Disability (LTD) insurance. Employees also benefit fromoptions that may include supportive clinical programs such as return towork sup- port and rehabilitative services, incentives toward the goal of recovery and a return to independent, productive work. Features of LTD plans may include: • Multiple monthly benefit maximums and elimination periods. • Various income replacement percentages. • Definitionof disabilitycoveringownoccupationandanyoccupation. • Choice of plan designs. • Availabilityonanon-contributory, contributory andvoluntarybasis. LTD plans pay monthly benefits to partially replace income lost as a result of a prolonged disability. Eligibility varies based upon an employee’s inability to perform thematerial duties of his/her occupa- tion on a full-time basis or all such duties on a part-time basis as well as a loss in pre-disability earnings while working in any occupation. The length of payment schedules and size of payment benefits vary depending upon the duration of the disability and the employer’s size, respectively. Statistics show that in the United States, a disabling accident occurs, on average, once every second. In fact, nearly 18.5% of Americans are currently living with a disability, and 1 out of every 4 persons in theworkforcewill suffer a disabling injury before retirement. James R. Nelligan GBDS is a Group Benefits Disability Specialist and President of James R. Nelligan & Associates LLC. He can be reached at 732-842-4563 or via email at james@ nelliganassociates.com. disability continued from page 27 Nearly 18.5% of Americans are currently living with a disability, and 1 out of every 4 persons in the workforce will suffer a disabling injury before retirement.