Disability Automatic Enrollment

CLOSE DISABILITY COVERAGE GAPS FOR MORE EMPLOYEES

Based on recent Department of Labor guidance, employers with ERISA plans can automatically enroll employees into disability plans. This is good news because it helps to fill important coverage gaps for employees. Sun Life is a leader in the disability market and provides the resources Clients need to make automatic enrollment easy for employees and easy for HR.

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1 in 4 employees will miss up to three months of work due to a disability during their career1.

HOW WE HELP

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  • We help you determine whether your group is a good fit for automatic enrollment.
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  • We help you ensure employees receive timely communications about this new way to get coverage—and how to opt out of coverage.
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  • We help you build the best enrollment strategy for all the benefits you offer.

YOUR AUTO-ENROLLMENT TOOLKIT


THOUGHTS ABOUT AUTOMATIC ENROLLMENT2


DEPARTMENT OF LABOR GUIDANCE

In 2018, the American Council Of Life Insurers, an industry association representing insurance companies that offer employee benefit products, formally requested that the Department of Labor (DOL) issue an informational opinion clarifying that ERISA plans are permitted to auto-enroll employees in group disability insurance plans. On December 4th, 2018, the Department issued their guidance, a copy of which can be found here3. In this letter, the DOL built upon previously issued guidance, and reinforced that ERISA plans have the ability to leverage auto-enrollment. While Courts are not bound to follow DOL guidance, an informational opinion does provide a road map that lays out how the DOL believes ERISA should be interpreted. Sun Life and other insurers continue to discuss the benefits of auto-enrollment with both state and federal legislators.

DISABILITY INSURANCE IS IMPORTANT


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EMPLOYEES DON’T HAVE ENOUGH SAVINGS

Almost half of American adults say that they have only enough savings to cover 3 months of living expenses in the event they’re not earning any income4

SOCIAL SECURITY DOESN’T PAY ENOUGH

The average SSDI benefit is $1,197 each month. This is just above the poverty guideline and the time from application to decision can take three to five months.5

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BENEFITS KEEP EMPLOYEES ON TRACK

Disability benefits replace part of an employees’ income if they cannot work due to illness (like cancer) or injury (like a bad back) and their claim for benefits is approved.

PLUS, EMPLOYEES GET HELP RETURNING TO WORK

At Sun Life, we help return employees to a productivity, either to their own job or to a new job. This means helping employers keep their talent.

AUTO-ENROLLING EMPLOYEES INTO DISABILITY PLANS IS WORTH CONSIDERING

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  • Coverage is beneficial to employees
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  • It can increase participation
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  • Employees can opt-out

Rely on Sun Life to make your automatic enrollment successful

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