“Your success is our goal.”

PFL Employee Cost Announced NYDBL Premium Payment 100% Employee Paid Optional Employee Contribution Employee Cost Maximum of $85.80 annually Maximum of $31.20 annually Rate Calculation .126% of the employee’s weekly wage based on a maximum covered payroll of $1,305.92 .5% of the first $120 per week As a comparison to other PFL programs, New Jersey is charging employees an annualized cost for 2017 of $33.50 annually. *The NY Department of Labor updates the Statewide AWW every July 1st.

Considerations…. The cost for PFL will most likely prove greater than the total premium employers pay for NYDBL coverage. Will the addition of PFL result in the weekly benefit for NY DBL being increased to be more in line with PFL weekly benefits? How will the PFL benefits be taxed? Will the contributions be taken on pre-tax basis? How will the addition of PFL impact rates on experience rated NY DBL policies?

Paid Family Leave Highlights NY State has passed a Paid Family Leave Benefit which will be added to existing Statutory NY DBL policies beginning 1/1/18. Paid Family Leave is designed to provide partial income replacement for an employee who takes time away from work for family events such as: Welcoming a new child to the family Caring for a family member with a serious health condition Preparing for a family member’s military service requirement *The above are a few examples of paid family leave events

What You Need to Know…. By amendment, PFL will be added to existing NY DBL policies. PFL is applicable to Employers who are subject to NY DBL regulations, regardless of size. PFL will be 100% paid by Employees through payroll deduction. (Employee contributions can begin as soon as 7/1/17). PFL will be community rated. All employees regardless of size will be charged the same cost. For additional information on Paid Family Leave, please refer to the following website: https://www.ny.gov/programs/new-york-state-paid-family-leave

Weekly Benefit Over a 4 year period, beginning 1/1/18, the weekly benefit for PFL will increase in both percentage and duration as follows: Effective Date Weekly Maximum Benefit Amount Maximum Benefit Duration 1/1/18 50% of average weekly wage 8 weeks 1/1/19 55% of average weekly wage 10 weeks 1/1/20 60% of average weekly wage 1/1/21 67% of average weekly wage 12 weeks

Reuben Warner Associates has been assisting our brokerage community with the placement of Statutory NY DBL coverage since the law was enacted in the 1940s. The State of NY recently re-released the regulations for the Paid Family Leave Benefit based on the feedback received during the open comment period. The open comment period has been extended to allow for further review of the updated regulations. We will continue to provide our brokerage community with updates as we approach the January 1, 2018 implementation date.

Assistant Vice President Account Representative For questions, please contact a member of the Statutory Disability Benefits Team: Team Member Title Email Address Extension Anthony Cortese Vice President Abcortese@rwarnerinc.com 718.477.7370 Mark D. Wintjen Assistant Vice President Mwintjen@rwarnerinc.com 718.477.7371 Brian Farsi Bfarsi@rwarnerinc.com 718.477.7375 Fitzroy Blackman Account Representative Fblackman@rwarnerinc.com 718.477.7374 1655 Richmond Avenue Staten Island, NY 10314 Phone: 800-421-3005 Website: Rwarnerinc.com “Your success is our goal.”