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ISCEBS 18700 W. Bluemound Rd P.O. Box 209 Brookfield, WI 53008-0209 Phone: (262) 786-8771 Fax: (262) 786-8650 iscebs@iscebs.org |
Press Release
Significant Number of Employers Unaware of Short-Term Disability Benefit Costs
Brookfield , Wisconsin — A recent survey conducted by the International Society of Certified Employee Benefits Specialists (ISCEBS) showed that employers don't have a firm grasp on what they're paying for short-term disability (STD) and that employees don't understand the value of the benefit.
“Given that studies have shown 30% of employees will become disabled for at least 90 days at least once during their working career, we find it surprising that most employers are unaware of how much they spend on their short-term disability benefits,” said Leanne Fosbre, CEBS, vice president of the Society and manager of group insurance administration for Wyeth, Madison, New Jersey.
The survey found that most employers treat disability as a payroll practice, making it difficult to determine costs. In fact, 41% of respondents don't know what they spend as a percentage of payroll on short-term disability benefits. Of those who do know:
- 53% spend between 0-5% of payroll on STD benefits.
- 6% spend between 6-10% of payroll on STD benefits.
- 2% spend between 11-15% of payroll on STD benefits.
The majority of respondents, 86%, offer a noncontributory disability benefit. The 14% of employers that require employee contributions indicate that contributions are a detriment to enrollment.
The survey also found that two-thirds of respondents have not made any recent changes to short-term disability, and the majority of them do not anticipate making changes in the near future. Respondents indicated that union contracts, employee perception of benefit value and management buy-in are the biggest hurdles for changing STD plans.
See the full survey results online at http://www.iscebs.org/PDF/std06survey.pdf .
CONTACT:
Contact:
Brenda Rood
brendar@ifebp.org
(262 ) 373-7756
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The International Society of Certified Employee Benefit Specialists (ISCEBS) is a nonprofit educational association whose members have earned the Certified Employee Benefit Specialist (CEBS) designation, which is cosponsored by the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania. For more information on ISCEBS or CEBS, visit www.iscebs.org .