NJTDB

NJTDB Basics

The New Jersey Temporary Disability Benefits Law (TDB) requires most employers in New Jersey to Provide Short Term Disability benefits to their eligible employees who are unable to work because of an off-the-job injury or illness.

What Are The Benefits?

Temporary disability benefits coverage provides a weekly benefit amount that is determined on the basis of the claimant’s average weekly earnings.  Benefits are 66 2/3% of the claimant’s average weekly salary, up to a maximum weekly benefit determined annually by the New Jersey Department of Labor.

2007 Benefit

66 2/3% of average weekly salary.  Maximum benefit is currently $502 per week.

Waiting Period:

8 days.  If benefits last longer than 3 consecutive weeks, than the waiting period is waived.

Period Of Disibility:

26 weeks in any 52 week period.

What Is The Cost?

The cost of the temporary disability benefits program is based on the size of the insured group:

1. For groups of less than 25 employees, rate quotations are based on the percentage of females in the group. (Limited Availability)
2. Groups of 25 or more employees are individually rated based on the prior experience of the group.

2007 Taxable Wages

$26,600

2008 Taxable Wages

$27,100

Does The Employer Pay The Full Cost For The Coverage?

In New Jersey the state plans are always contributory. The employer has the option of making the plan non-contributory or sharing the cost with the employees only through a private plan.  When the cost of the plan is shared, the maximum amount an employee can contribute is ½% of the annual covered wages.  The amount of taxable wages covered is determined each year by the New Jersey Department of Labor.

How Is TDB Written?

The majority of New Jersey employers have coverage through the New Jersey State plan.  New Jersey does allow insurance companies to write the temporary disability benefits coverage through an approved private insurance plan instead of the state plan.  We have viable markets to write TDB.

What Do We Need To Quote A Risk?

1. For risks in excess of 25 lives, a copy of Form #AC174.1, which is Notice of Employer Contribution Rates for Unemployment Insurance and State Disability Insurance. (See enclosed form)
2. A copy of the experience report for each of the past three years, which the state of New Jersey sends to the employer each August.
3. Total number of Males and Females.