NJ TDB Regulatory Update Earlier this year, The State of NJ passed sweeping changes to NJ TDB making it much easier for employers to privatize NJ TDB coverage. The State of NJ is in the midst of releasing 2019-2020 AC 174s (Notice of Employer Contribution Rates) which is the document needed to secure quotes to privatize. The time to act is now! Private plans are typically placed for January 1st effective dates. Employee consent is no longer required for plans that withhold employee contributions. Employees subject to a collective bargaining agreement may still be required to give employee consent. See Page 64 of the bill, link listed below. Effective July 2020 the benefit will increase to 85% of Average Weekly Wage. Based on the current Statewide Average Weekly Wage, this would mean a weekly benefit of $859 per week (final max to be determined). Based on the upcoming increased weekly benefit, the employee contribution rate has also been increased effective January 1, 2020. No “wet signatures” required on State of NJ DP-1 Applications Coverage extended for “Partial Disability.” As we digest these changes, we will provide you with more information! https://www.njleg.state.nj.us/2018/Bills/A4000/3975_R3.PDF
Most recent NJ TDB assessment is $.000224 multiplied by taxable wages 2019 New Jersey TDB Update 2020 2019 2018 2017 2016 2015 Maximum Weekly Benefit TBD Approx. $859 (7/2020) $650 $637 $633 $615 $604 Taxable Wage Base TBD $34,400 $33,700 $33,500 $32,600 $32,000 Alternative Earnings Test $8,600 $8,500 $8,400 $8,300 Employee Contribution Rate $.26/$100 of taxable wages $.17/$100 of taxable wages $.19/$100 of taxable wages $.24/$100 of taxable wages $.20/$100 of taxable wages $.25/$100 of taxable wages Most recent NJ TDB assessment is $.000224 multiplied by taxable wages
Benefits of Privatizing NJ TDB Benefits Private Insurance Carrier State Fund Toll Free 800 Number for Claims Yes Not Available Access to Claim Examiner Assigned to Policyholder State Assessment Fees None, Private Carrier will pay this fee on behalf of the employer for the policy years covered Availability to Increase Weekly Benefits Additional Services such as Claim Diagnostic Reports, W2 Services, FICA Match Services, etc. Yes (Available on a case by case basis) Multi-Year Rate Guarantees Yes (subject to loss experience) Average Claim Turnaround Time 3-5 Business Days 3 Week Minimum Frequency of Claim Payments Weekly Bi-Weekly
NJ TDB Questionnaire can be found on our website; Rwarnerinc.com Please reach out to one of our NJ TDB Team Members to assist you with securing meaningful savings for your client: Team Member Title Email Address Extension Anthony Cortese Senior Vice President – Principal Abcortese@rwarnerinc.com 718.477.7370 Mark Wintjen Assistant Vice President Mwintjen@rwarnerinc.com 718.477.7371 Fitzroy Blackman Account Representative Fblackman@rwarnerinc.com 718.477.7374 Kimberly Machnach Kmachnach@rwarnerinc.com 718.477.7383 Gabrielle Balestrieri Gbalestrieri@rwarnerinc.com 718.737.7282 NJ TDB Questionnaire can be found on our website; Rwarnerinc.com