Private Plan

Ministry of Labour and Personnel Development | Section 2 Unemployment and Disability Insurance Benefits Section 6

New Jersey Temporary Disability Benefits Law allows organizations to insure their employees under private schemes authorized and supervised by the Division of Temporary Disability Insurance, Private Plan Compliance Section. Guaranteed pensioners with private schemes that have been authorised will be exempted from paying employer's contribution to the State Disability Benefits Fund in the same way as their employees, as long as they continue to be funded under the scheme.

If you are a losing company, you can set up a private plan for the provision of invalidity benefit instead of the benefit paid under the state plan. These private schemes may be policies drawn up by authorised transporters, by self-insured self-employed workers or through arrangements between trade union and work. Any private plan must be cleared by the Private Plan Compliance Department.

An employer who chooses private plan cover must file an appeal and a full plan specification for consideration. 1. The conditions for entitlement to benefit shall not be more stringent than those laid down in the national plan. 2. The amount of the benefit shall be at least equivalent to that provided for in the national plan, both in terms of the amount per week and in terms of the aggregate number of eligible hectares.

They can cancel a private plan at any point. You must, however, first inform Private Plan Compliance Section in a letter of intent at least 30 calendar days prior to the date the cancellation takes effect. Employees may cancel a private plan under certain circumstances. In addition, an insurance company may cancel a private plan with 60 day prior notification in writing to the Private Plan Compliance Department.

The Private Plan Compliance Department may revoke the consent of a private plan due to cancellation of cover or other important reasons. If a private plan is cancelled, cover by the state plan automatically comes into force the following business day after the cancellation. Employers or employees are not asked to submit claim documents in order to receive cover under the State Plan.

Such cases shall also give rise to immediate effect of responsibility for State Plan contribution. We recommend that an employer switching from private to state insurance should receive a sufficient number of application form for state insurance (DS-1) from the Temporary Disability Insurance Department. If you wish to request the authorisation or cancellation of a private plan, please send an e-mail to