According to the American Council of Life Insurers, nearly one-third of all Americans will suffer a disability between the ages of 35 and 65. Statistics like that make short-term disability coverage a vital piece of any employee’s financial plan.
Formula Benefits has been offering Short-Term Disability Administrative Services to clients since 1989 for a low monthly fee of $1.25 per covered employee, per month.
How does Short-Term Disability Work?
Short term disability (STD) pays a percentage of an employees salary if s/he becomes temporarily disabled, meaning that s/he is not able to work for a short period of time due to sickness or injury (excluding on-the-job injuries, which are covered by workers compensation insurance). A typical STD policy provides a weekly portion of an employees salary, usually 50, 60, or 66 2/3 percent for 13 to 26 weeks. Most STD policies have a "cap," meaning that there is a maximum benefit amount per month.
Back Injuries
Normal Pregnancy
Non Back Related Injuries
Digestive and Intestinal Diseases
Reproductive and Urinary System Diseases
Complications related to Pregnancy
How benefits are paid to Participants:
Formula Benefits pays Short-Term Disability Benefits as a payroll practice in accordance to the Department of Labor Regulations § 2510.3-1(b)(2).
This simply means that all payments for Short-Term Disability claims will be taken out of the general funds of the employer and paid to the employee coincident with the normal pay period of the employer.