“Your success is our goal.”

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. Although much is still to be determined, please rest assured we are working closely with our markets to better help you understand and discuss PFL coverage with your clients. We will continue to provide our brokerage community with updates as we approach the January 1, 2018 implementation date.

*The above are a few examples of paid family leave events 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

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

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). Although NY State has yet to announce the rate for PFL, it 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

The Unknown… Since the passage of the PFL benefit, there is currently a 45 day public comment period. After reviewing the regulation, we have posed the following questions to our markets and we are awaiting additional clarification: If contributions can begin 7/1/17, but the benefit does not begin until 1/1/18, what happens to collected employee contributions? Since the employees are paying 100% of the premium, how will the benefit be taxed, if taxed at all? Can premium/employee contributions be made on a pre-tax basis?

The Unknown (continued)… How will PFL impact the handling of experience rated NY DBL accounts? If NY DBL has been provided with an extension of coverage for Non NY Employees, are the Non NY Employees also provided with PFL? How does PFL impact groups who are currently providing NY DBL on a voluntary basis, such as Government Entities, Partners of an LLC or other non-subject employees? Will the addition of PFL cause the State of NY to consider increasing the NY DBL Benefit as well?

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 Wintjen AVP Mwintjen@rwarnerinc.com 718.477.7371 Brian Farsi Bfarsi@rwarnerinc.com 718.477.7375 Fitzroy Blackman Account Representative Fblackman@rwarnerinc.com 718.477.7374

“Your success is our goal.” 1655 Richmond Avenue Staten Island, NY 10314 Phone: 800-421-3005 Website: Rwarnerinc.com “Your success is our goal.”