NJTDB Benefits Law Changes: What Insurance Brokers Need to Do
2020 brought major changes in the New Jersey Temporary Disability Benefits Law. For the first half, the benefits were increased to 66.67% (effective 1stJan 2020) of a worker’s average weekly salary (to a max of $667 per week). We are now in the second half and the benefits have increased to 85% (effective 1st July 2020) of a workers average weekly salary (to a max of $881 per week). If we talk about employees’ contributions to premium for the NJTDB coverage, there are massive changes in that too.
For the first time, employees are contributing premium on a different taxable wage to pay for the benefit increases. Employees are contributing .26% on the first $134,900 of earnings (maximum annual contribution being $350.74), which was .17% in 2019 on the first $34,400 in earnings (maximum annual contribution being $58.48). This means nearly 6 times premium increase per worker.
What Insurance Brokers Need to Do
- Educate your clients (employers) and their administrative teams on the revised laws concerning TDB and FLI benefit changes — to help them ensure compliance.
- Review your clients’current TDI plan and provide suggestions on how they can take advantage of the new amendments to save more on premiums, prevent themselves from potential rate hikes, improve employee retention, and get better services.
- Let your clients know that they are no longer required to obtain signatures (employee consent)in order to switch from a State TDI plan to a private plan. Provide them with the best options that can help them stay one step ahead of their competitors.
Let EZTDB Write Your TDI Benefits Coverage
At EZTDB, we care for insurance brokers so they can care for their clients and earn more commission. Let us write your new TDI coverage plan and ancillary benefits (vision and dental coverage, long-term disability, group life, and 401K plans). We have partnered with a wide range of top-of-the-line insurance carriers to help brokers earn maximum profit and obtain maximum client satisfaction.