NEW JERSEY TEMPORARY DISABILITY BENEFITS (TDB) RATE CHANGES FOR 2011

The New Jersey Department of Labor and Workforce Development has announced rate changes in the Temporary Disability Benefits (TDB) Law. These changes affect insured and self-insured Private Plans which duplicate benefit rates of New Jersey’s State Plan for temporary disability benefits. The changes involve:

•maximum weekly benefits, for disabilities commencing on or after January 1, 2011;
•the maximum taxable wage base for 2011; and
•the maximum employee contribution during 2011.

It should be noted that, as a result of these TDB rate changes, the maximum weekly benefit and the maximum employee contribution will both decrease in 2011.

Maximum Weekly Benefit

The maximum statutory weekly benefit will decrease to $559 (from $561) for a non-occupational disability commencing on or after January 1, 2011.

Statutory Eligibility Requirements

An individual covered under New Jersey’s State Plan must work 20 weeks in a base year and earn 20 times the state minimum hourly wage ($7.25) in each of those weeks in order to be eligible to receive disability benefits. The base year “alternative earnings test” (applicable to individuals not having 20 base weeks) is calculated by multiplying 1,000 times the state minimum hourly wage ($7.25), and rounding the answer to the next $100 (or $7,300).

Maximum Annual Taxable Wage Base – Contributions
Effective January 1, 2011, the maximum annual taxable wage base, to which the maximum employee contribution rate of .5% is applied, will decrease to $29,600 (from $29,700). As a result, the maximum employee contribution will decrease to $2.85 weekly / $12.33 monthly (from $2.86 weekly / $12.38 monthly).

For a complete Legislative Brief on State Disability Laws-New Jersey click here.

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