Is Your Disability Plan Governed by ERISA?

If you believe you have been wrongfully denied your ERISA, or non-ERISA, long-term disability benefits, give us a call for a free lawyer consultation. You can reach Cody Allison & Associates, PLLC at (615) 234-6000, or toll free (844) LTD-CODY. We are based in Nashville, Tennessee; however, we represent clients in many states (TN, KY, GA, AL, MS, AR, NC, SC, FL, MI, OH, MO, LA, VA, WV, just to name a few). We will be happy to talk to you no matter where you live. You can also e-mail our office at cody@codyallison.com. Put our experience to work for you. For more information go to www.LTDanswers.com

There are many types of disability insurance plans out there, and many employers provide these types of plans for their employees. However, not all of these plans are governed by the Employee Retirement Income Security Act, or ERISA. How do you tell if your plan is or is not governed by ERISA?

ERISA was a law enacted in 1974 and applies to private long-term and short-term disability insurance provided by an employer. It is designed to protect workers with these plans. ERISA sets up a framework for how disability claims are processed, the timeline for processing these claims, and what the policyholder’s rights are in the event of a denial of the insurance proceeds under these plans. You, as an employee, should receive a copy of your policy which provides the material provisions of your employer’s plan.

Most private companies which provide short- and long-term disability coverage will have plans that are governed by ERISA. However, your plan may not be covered if the employer makes no contributions to the plan and if participation in it is completely voluntary. Some employers may even allow these voluntary payments to be taken out of the paycheck automatically and allow the insurer to advertise the plan at the workplace, and still be be involved in the actual plan itself, which would mean that the plan is not covered by ERISA.

Also, certain types of employers, even if they provide the plan, may not be covered by ERISA. These may include federal, state and local government employers and church employers. Be aware that if your employer contracts to work for governmental entities, even though your employer is not a governmental entity, this may mean your plan is not covered by ERISA. However, some governmental employers may be governed by laws that are similar to ERISA but designed for governmental entities.

If you have questions about whether or not your disability plan is covered by ERISA, call us. We are here to help.