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Board hears plan to raise employer‑paid long‑term disability maximum to $450, staff to return in June for vote
Summary
Staff proposed increasing the PEB employer‑paid long‑term disability (LTD) cap from $240 to $450 without raising employer rates; employee premiums would fall about 6%. The board was asked for feedback and staff will present a recommended policy resolution in June, with a proposed effective date of Jan. 1, 2026 for new claims.
Kimberly Guzard explained that the employer‑paid LTD maximum has remained $240 since 2003 and that 48% of PEB subscribers are enrolled only in the employer‑paid plan and thus receive the $240 cap. She said the budget passed language allowing an increase to a $450 maximum "within existing resources," meaning employer premiums would not increase and reserves would be maintained. Kimberly said the increase, if adopted, would reduce employee‑paid LTD premiums by about 6% and be effective Jan. 1, 2026 for new claims only.
Board members asked how the employee and employer rates are linked and whether savings could be reallocated; Kimberly said employee rates only decrease if the employer‑paid ceiling increases, and Dave noted that the budget language grants authority to raise the benefit within existing premium spending. Staff requested written feedback by May 26 and will return with a formal policy resolution for vote in June.
