The Temporary Disability Plan provides employees with the financial protection of a partial income if they are unable to perform regular work duties because of a physical or mental illness or injury. Temporary disability benefits are generally available for up to 90 days from the date of the disability, after a seven-day waiting period.

The Temporary Disability Plan was designed with ease of administration for employers and employees. Our partner, Lincoln Financial Group, reviews and makes a determination on all disability applications and handles administrative responsibilities for you, including an ongoing review of benefits to verify continued disability.

Amount of benefits

Generally, the temporary disability benefit equals 70% of the employee’s salary, up to the IRS maximum, paid weekly. These benefits are considered sick pay.

Disability benefits are reduced by income sources such as state-mandated disability benefits and workers' compensation.

Other benefits during disability

A valuable feature of this coverage is that, if an employee has other benefits through the Board of Pensions, these benefits must continue during the temporary disability, subject to Benefits Plan rules and your policies.

Under the Temporary Disability Plan, employers are required to continue all employer-paid benefits and allow the member to continue to pay for all employee-paid benefits.

Eligibility

You may offer the Temporary Disability Plan to employees regularly scheduled to work at least 20 hours per week. The plan is included in the Covenant Package, the Congregational Pastors Package, and Transitional Pastor’s Participation.

There is no preexisting condition limitation, and no evidence of insurability is required.

Cost

The cost of the Temporary Disability Plan is $0.45 per $10 of weekly salary. For example, an employee’s monthly temporary disability cost is calculated as follows: [(salary/52) x $0.45]/10, so if the employee's annual salary is $40,000, the cost of the coverage is $34.62 per month, for a total of $415.38 per year.*

Either you or your employee may pay the full cost of the coverage. If you pay the cost, temporary disability benefits are taxable when paid to the employee. If the employee pays for the coverage, the temporary disability benefits are tax-free when paid to the employee.

*Actual cost may be more or less due to rounding.

Enrollment

If you pay for this coverage, the employee is automatically enrolled. If the employee pays the cost, the employee may elect the coverage when they first become eligible or during Annual Enrollment.

Offer with Long-Term Disability

The Long-Term Disability Plan offers financial protection for employees with a disability that extends beyond 90 days. When offered together with the Temporary Disability Plan, employees have comprehensive income protection plus a seamless administrative experience if they transition from temporary disability benefits to long-term disability benefits.

Interested in offering the Temporary Disability Plan? Here's what to do next.

For current employers

If you currently offer benefits through the Benefits Plan of the Presbyterian Church (U.S.A.), you may elect this benefit when you update your Employer Agreement for the following year. 

For new employers

If you do not currently offer benefits through the Benefits Plan and would like to learn more about its features and how the Board of Pensions serves employers, call our Employer Services team at 800-PRESPLAN (800-773-7752) (TTY: 711) to discuss how we can best meet your and your employees' needs.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Millions of customers trust Lincoln's retirement, insurance, and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses.