Rates could rise, once again, for the premium cost of New Jersey TDB coverage. That means more opportunities than ever before for insurance brokers to build loyal customers and increase their book of business by showing companies how to privatize temporary disability benefits in New Jersey.
Here’s what we know so far:
The New Jersey Department of Labor has proposed to increase the taxable wage base for employer contributions from $36,200 in 2021 to $39,800 in 2022. The wage base for employee contributions to TDB and New Jersey’s Family Leave Insurance (FLI) benefit could jump from $138,200 this year to $151,900 in 2022, BloombergTax.com reported earlier this month.
Will New Jersey TDB Benefit Increases Follow?
New Jersey has not yet stated whether it will increase employee contributions beyond 47 cents on the dollar for either benefit, or if it will increase the benefit amount. Frequently, wage base increases and premium rate hikes are accompanied by benefit increases. As inflation has affected the price of goods and services across the board in 2021, we can be hopeful that a benefit increase announcement will follow. In 2021, New Jersey offered income replacement of up to 85% of a worker’s average weekly salary, capped at $903 per week.
Show Your Clients How They Can Join the Elite 2%
Regardless of the amount of the benefit for 2022, there’s never been a better time to show your clients the cost savings they can realize by privatizing New Jersey TDB. By New Jersey state law, a private benefits plan must offer coverage equal to or better than the state plan at rates equal to or lower than the state’s premiums. Yet, only 2% of New Jersey businesses take advantage of this benefit. We know the 2% is an elite number… your clients would love the opportunity to join their ranks and privatize TDB.
Especially now, as states face a labor shortage and are looking to entice workers through raises and enhanced benefits, privatized TDI and voluntary worksite benefits represent a great way to give workers more without spending more.
Plus, in addition to the cost savings realized by privatizing TDB, New Jersey business owners can eliminate waiting periods for claims payouts, select their choice of payment methods, and enjoy personalized service from the state.
How to Privatize New Jersey TDB
Since New Jersey waived the signature requirement for employees to “opt-in” to a private plan, it’s never been easier to privatize TDB. You’ll just need your client to obtain their AC174.1 from the Department of Labor website and send it to us.
Once The DBL Center team has that information, we do it all from there, including shopping the plan to find the lowest rates and offering white glove service every step of the way.
Sweeten the Deal with Voluntary Worksite Benefits Options
While you don’t need to bundle New Jersey TDB with ancillary benefits to switch to a private plan, it may help your customers save even more money. DBL Center’s experienced staff can help you write the best policies for voluntary worksite benefits and ancillary benefits that include:
- Accident insurance
- Critical Illness Insurance
- Group Life / AD&D
- Vision and Dental Coverage
Employers can even customize plans to fit their workforce needs and demographics.
What’s to Come In 2022?
There’s a lot of uncertainty surrounding 2022 and what steps business owners will take to stay competitive in such a tight labor market. In all scenarios, there’s little doubt they will look to their trusted insurance brokers to provide the benefits their employees and job candidates need and want.
If premium rates rise in lockstep with inflation, business owners will be looking to save money on premiums while offering their employees value-added benefits that can give them financial peace-of-mind.
The DBL Center is here to help you keep pace with changing times and deliver low rates from trusted carriers on New Jersey TDB, voluntary worksite benefits, and more.
It’s time to start letting the 98% of business owners who are still writing their New Jersey TDB policies with the state that there is a better way.