Hot off the presses and straight from the recent Asinta Partner meeting hosted by Asinta’s Canadian Partner, Cowen Insurance Group, this report features very helpful information about disability practices from all over the world.
Just some of the information and trends you’ll spot in the report by country include:
Ireland is the only country that reported a benefit payment containing a Consumer Price Index (CPI) adjustment.
The Canadian government is looking into mandating continuance of disability benefits to retirement, as most employers terminate the Long-Term Disability (LTD) benefit at age 65.
It is important to know that providing employer-sponsored LTD benefits in Germany is not just about buying insurance. In Germany, employees obtain vested rights to LTD benefits and are not comparable to the typical group income protection schemes found in other countries.
In the United Kingdom, all adults have access to state benefits if they are deemed too ill to work. There are many benefits, including Employee Support Allowance (ESA), and Universal Credit, which could include a housing benefit. Short-term sick pay is often discretionary, with management approving payments if an individual is deemed genuinely ill and a deserving case. For example, a poorly graded employee with a subjective illness may receive no pay, whereas a trusted employee with a traditional physical illness will retain some, or all, pay.
Forty eight percent of employers offer disability insurance over and above superannuation fund coverage. Superannuation trustees are required to have a basic level of death and disability coverage under any Default Super Arrangement, but many will set a level that is based on salary, e.g. 3 times salary for professionals, IT, Financial Services etc., or something that follows a bell curve, i.e. 10% of salary multiplied by years to age 65. Employers competing for talent will consider using this as a benefit or might look to pay additional contributions.
Although employee or employer-funded LTD premiums are possible in the US, when an employee pays the LTD premium (non-taxable benefit), it is not common to have mandatory LTD enrollment or term of employment.
United Arab Emirates
Where an injury prevents a worker from carrying out his duties, the employer shall pay a cash allowance equal to their full pay throughout the period of treatment, or for a period of six months, whichever is shorter. Where the treatment lasts for more than six months, the allowance shall be reduced by one-half for a further period of six months, or until the worker fully recovers, is declared disabled, or dies, whichever occurs first.