Unum Group · NYSE:UNM
Unum — Conference Presentation (February 2021)
23 slides from Unum's conference presentation, February 2021
Slide 1: Connecticut Paid Family & Medical Leave 2021
Connecticut Paid Family & Medical Leave 2021 DARIS FREEMAN Assistant Vice President, Legal Counsel GREG ECKHARDT Products Director, Disability and Paid Leave The information contained herein does not constitute legal advice or a legal opinion on any specific facts or circumstances. The contents are
Slide 2: Agenda
DARIS FREEMAN Assistant Vice President AGENDA Legal Counsel 1 PFML Landscape 2 Connecticut Paid Family & Medical Leave GREG ECKHARDT Products Director 3 CT FMLA changes Disability & Paid Leave 4 Unum’s Absence Solutions 2
Slide 3: PFML Insurance Programs: Who has the programs?
Who has the programs? • California • Washington (2020) • New Jersey • Washington DC (2020) PFML • Rhode Island • Massachusetts (2021) INSURANCE • New York • Connecticut (2022) PROGRAMS • Hawaii (disability only) • Oregon (2023) • Colorado (2024) 3
Slide 4: What are they? How are they funded?
WHAT ARE • Mandatory programs – employers and employees can’t “opt out” • Income replacement for employees out of work for specified reasonsz THEY? • Many provide job protection and/or health benefit continuation HOW ARE Employees and/or employers pay premium to the state z THEY FUNDED? WHO PAYS Typ
Slide 5: Connecticut Paid Family and Medical Leave
CONNECTICUT PAID FAMILY AND MEDICAL LEAVE 5
Slide 6: Disclaimer
This Unum presentation is our best effort at understanding Connecticut Paid Family and Medical Leave (CT PFML) and how it will work based on the bill that was passed. Our interpretation is subject to change once rulemaking begins and the state begins issuing guidance. DISCLAIMER The material in this
Slide 7: Overview
EFFECTIVE DATES January 1, 2021 January 1, 2022 (contributions) (benefits) • 12 weeks of paid family/medical leave in a 12-month period • Additional 2 weeks if incapacitated due to pregnancy OVERVIEW • Completely employee funded – .5% of wages • Capped at social security max • Expands existing unpai
Slide 8: How to Enroll in CT PFML
Actions: 1) Register your business at ctpaidleave.org as soon as possible • You will need your FEIN & NAICS code 2) Deduct and hold employee contributions starting 1/1/21 • Relatively low 0.5% rate is funded entirely by employees. No employer funding • Use the same wages used for FICA taxes then mul
Slide 9: Employer Coverage
All employers with at least one employee excluding: • Federal government • State* • Municipality* • Local or regional board of education* • Non-public elementary or secondary school EMPLOYER COVERAGE *Could have “covered public employees” 9
Slide 10: Employee Eligibility
Earned at least $2,325 during the highest earning quarter within the base period* and: • Is presently employed by an employer, • Has been employed by an employer in the EMPLOYEE previous 12 weeks (former employee), or ELIGIBILITY • Self-employed or sole proprietor and CT resident who has enrolled in
Slide 11: Benefits
Base Weekly Earnings (BWE) - average weekly wage during the 2 quarters in the base period with the highest earnings Financials DEFINITIONS Maximum = 60x fair minimum wage ($780 on 1/1/22) BENEFITS Fair Minimum Wage = 8/2021 = $13/hour ($780 max); 7/2022 = $14/hour ($840); 6/2023 = $15/hour ($900) 95
Slide 12: Benefits: additional provisions
Additional benefit provisions? • Workers can collect CT PFML concurrent with other employment benefits but no more than 100% of wages • Employment benefits – disability, sick leave, annual leave • Workers are not entitled to paid family and medical leave under the state program in any week where the
Slide 13: Qualifying Leave Reasons
12 weeks* of paid leave in a 12-month period for: • Worker’s own serious health condition • To serve as organ or bone marrow donor • Worker needs related to family violence (12 day max) • Birth of a child QUALIFYING • Placement for adoption or foster care LEAVE • Caring for a family member with a se
Slide 14: Covered Family Members
COVERED FAMILY MEMBERS Family Member Child Sibling Parent An individual Spouse Grandchild Grandparent (any age) (includes in-laws) (includes in-laws) related to the employee by blood or affinity whose close association the employee shows to be the equivalent of those family relationships 14
Slide 15: Documentation Requirements
DOCUMENTATION Same certification requirements as CT FMLA REQUIREMENTS EMPLOYEE NOTICE 30 days if foreseeable or as soon as practicable REQUIREMENTS Employer can require, or employee can choose, to use accrued paid leave. Must USE OF ACCRUED allow employee to retain 2 weeks. Time taken does not get d
Slide 16: Employer Notice and Recordkeeping
Employer Notice Anti-retaliation/Job Health Benefit and Recordkeeping Protection Provisions Maintenance At time of hiring and annually, • Under CT FMLA, There is no specific must provide notice containing: employees to be restored requirement to maintain to same position (must group health benefits
Slide 17: Private Plan Options
Employers may apply to have a private plan. It must: • Meet or exceed the state plan provisions • Cost employees the same or less than the state plan • Provide coverage for all employees throughout employment • Provide for inclusion of future employees PRIVATE • Protections of CT FMLA apply to leave
Slide 18: Key CT FMLA Changes
KEY CT FMLA CHANGES CT FMLA - today CT FMLA – 1/1/2022 Covered employer 75+ employees on October 1 All employers • 12 months tenure • 1,000 hours worked in the 12 Employee eligibility 3 months tenure immediately preceding leave months preceding leave • 12 weeks in a 12-month period Entitlement 16 we
Slide 19: Unum solutions
• Short-term disability plans:. Unum group STD plans offset for state disability benefits, which means the STD benefit is reduced by the amount an employee receives or is entitled to receive from state programs. • STD plans will continue to provide important supplemental coverage for employees (slid
Slide 20: Unum solutions
• Unum’s STD plans provide important supplemental coverage that “tops up” CT’s paid medical leave plan, particularly for employees earning more than ~$67K • The full STD benefit is reduced or offset by state medical leave payments so the employee is provided a benefit that is richer than the state p
Slide 21: Unum solutions
Unum’s STD plans also fill duration coverage gaps as well: • Bridge to LTD: Unum solutions • 12 weeks total for both paid family leave (PFL) and paid medical leave (PML): 21
Slide 22: Resources
Resources Unum’s Leave and Absence Management Site • FMLA Handbook Your local Unum • PAID LEAVE LAWS BY STATE representative Connecticut Paid Leave Poster Employer Toolkit Fact Sheet Paystub insert 22 Insurance products are underwritten by the subsidiaries of Unum Group. © 2021 Unum Group. All right
Slide 23: Questions?
Questions? Insurance products are underwritten by the subsidiaries of Unum Group. © 2021 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. FC-614750 (2-21) 23