VLGIA Disability Program: 2017 Update

Three years ago the Commonwealth mandated disability benefits under the Virginia Local Disability Program for Virginia’s local governments and school systems. Many governmental entities elected to implement “comparable coverage,” rather than joining the state plan.

VML Insurance Programs (VMLIP) provided that comparable coverage choice for members. The pool partnered with Lincoln Financial Group and the Marsh & McLennan Agency (MMA) to form the Virginia Local Government Insurance Association (VLGIA).

The VLGIA coverage price was guaranteed for three years.

“The good news for those who joined VLGIA is that the current administrative fees for the Short-Term Disability Plan and the premium rates for the Long-Term Disability Program will remain unchanged for the 2017 plan-year,” said VMLIP Managing Director Steve Craig.

“We understand the challenges many faced when the state’s disability mandate was enforced,” said Craig. “Most of our members had relied on sick leave, vacation, paid annual leave, VRS disability benefits, and voluntary disability programs to provide income replacement for their workforce.”

When paid leave programs were supplemented with the state’s disability benefits, it was difficult to know how to modify existing programs to accommodate the new plans.

Today, many members may be ready to take a closer look at their underlying paid leave programs. This is especially true for those with large sick leave accrual systems. With the introduction of short term disability benefits that continue for up to six months, the need for large sick leave accruals has been eliminated.

However, members may still seek guidance with the possible re-design of leave plans, as well as options for the use of existing sick leave accruals.

If you need consulting assistance to explore the most appropriate paid leave options for your employees, you may contact VLGIA’s consulting partners at MMA in Richmond. You can reach out to Dawn W. Hall at (804) 200-6752, or dawn.hall@mma-midlantic.com to discuss your needs in more detail.