When it comes to employee group benefits, corporate policies, and high impact risk exposure like death, disability and catastrophic pharmaceutical, there is no room to “beg for forgiveness later” when enrolments and the claim process have been mishandled.
Too many times when a corporation’s internal policies do not factor in impact of an employee group benefit plan, they can be the ones left without a chair, as the saying goes, when the music ends. When companies leave the decision making—the “what to do” in a given situation—until the circumstance arises, it is usually too late. At the time of death or disability of a staff member who was not properly enrolled, or covered according to their salary, the company may face unforeseen legislative and/or liability issues.
Absence of a policy
In the absence of an existing written policy which highlight the necessary steps for:
· Enrolling
· Terminating
· Updating
· Communicating how long benefits will continue in the event of a disability claim
· How long benefits continue for dependents in the event of the death of an employee
The way a situation was addressed previously will stand as the test going forward to ensure everyone is treated fairly and equally.
Ensuring the corporate policy includes information relative to the benefit plan will reinforce the company’s commitment to the health, wellness, safety, and stability of staff members.
Self-governance
· Increases decision making, ensuring everyone is working from the same playbook in accordance with the company’s best interest and those of the covered employees.
· Engages employees in the process so they know what to expect when the unexpected happens.
· Reduces duplication of effort as everyone is working on the same team.
· Optimizes leadership to improve positive outcomes for all.
· Reinforces a dynamic, respectful culture, where communication is a key strategic measure.
· Reduces confusion and causes cohesion amongst the various layers of corporate structure.
Avoiding unnecessary legal grief
Having a benefit plan that is mandatory for all full-time, actively at work employee members will reduce all too common situations of an incident occurring and the employee not being covered who should have been enrolled on the plan. An employer can never assume that the employee knows what they are giving up when they refuse coverage, unless and until, that employees has consulted their own legal counsel, paid for by them, outlined the situation and holds harmless the corporation of any liability risk in the event that they die, become disabled, or incur a catastrophic medical event while employed.
When it comes to a beneficiary who requires the life insurance funds to simply bury their loved one with dignity, the courts have not been known for siding with an employer.
Manage expectations (as an example)
The company, as part of the plan, pays for [__%] of the premiums, with the employee contributing [__%]. The employee’s portion is payable first to the taxable lines of benefits, which may include life and/or disability insurance.
For clarity, in the event an employee becomes disabled to the extent that prevents them from coming into work, the Company’s [__%] payment applicable to the Pharmacy, Extended Health Care, including Out-of-Country Travel Insurance, Paramedical Services, Vision Care, and Dental Care, as well as the Health Spending Account (non-taxable), and the Personal Health Spending Account (taxable), where applicable will be referred to as the Health Care Benefits and will continue up to [____-months] following the last date of active, full-time work, providing that the employee continues to pay their portion of the expected premiums, as outlined above.
The Health Care Benefits portion of the plan will terminate [____-months] from the last date of active, full-time employment due to disability.
If the employee obtains employment other than with the Company, all benefits will cease effective the date the employee commences this employment.
It’s probably time to have a conversation.
Reach out if you would like to explore your corporate benefit options, like:
· The benefit conundrum
· The difference between Employment Insurance Sickness Benefits and Short-Term Disability coverage
· Table stakes in benefit plans
Note: From a human’s mind … this was written without the aid of Artificial Intelligence (AI)
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
