In the event of a short-term disability, the Temporary Disability Plan provides important financial protection to employees.
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 14-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.
Generally, the temporary disability benefit equals 60 percent of the employee’s effective salary, up to $330,000 in 2023,* paid weekly. These benefits are considered sick pay.
Disability benefits are reduced by income sources such as state-mandated disability benefits and workers' compensation.
*$305,000 in 2022
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 your policies and Benefits Plan rules.
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.
You may offer the Temporary Disability Plan to employees working at least 20 hours per week. The plan is included in the Pastor's Participation and the Minister's Choice benefits packages.There is no pre-existing condition limitation, and no evidence of insurability is required.
The cost of the Temporary Disability Plan is $0.45 per $10 of weekly salary. For example, 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 the 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.
If you pay for this coverage, the employee is automatically enrolled. If the employee pays the cost, the employee may elect the coverage during annual enrollment.
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 financial protection plus a seamless administrative experience if they transition from one plan to the other.
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 on Benefits Connect for the following year. Employer Agreements are usually available for updating July through October.
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 800-773-7752 (800-PRESPLAN) to discuss how we can best meet your and your employees' needs.
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. More than 17 million 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.
The Board of Pensions is here to answer any questions about benefits. If you need assistance, contact us.