Termination Information - Private Plan
- The employer.
To have an approved private plan terminated, the employer must request termination of the plan in writing. The effective date of the termination will be 30 days after the postmark date of the letter. If the employer would like to request a specific termination date they may do so, but the termination request must be postmarked at least 30 days prior to the termination date. The termination request must state how and when the employees affected were notified that the plan would be terminated, include the NJ Employer Identification Number and be signed by a corporate officer. Mail the termination request to the Private Plan Compliance Section, Plan Approval Unit, PO Box 957, Trenton, NJ 08625.
Additional information regarding this termination process can be directed to the Plan Approval Unit at (609) 292-2720.
Once the plan is terminated, the employer and insurer will receive a "Certificate of Withdrawal" of the private plan and the employer will automatically be put back into the State Plan for disability coverage.
Information pertaining to the employer's cost under the State Plan can be found on the Department's website at Employer Accounts or by calling Employer Accounts at (609) 633-6400.
- The insurer.
If the plan is being terminated due to nonpayment of the premium, notification to Private Plan Operations must be made in writing at least 15 days before the effective date of the termination.
If termination by the insurer is for any other reason, written notice must be submitted to Private Plan Operations at least 60 days prior to the effective date of the termination. However, if the termination is due to a change of insurer, the 60 day requirement may be waived.
- The workers covered by plan.
This requires a petition signed by at least 10 percent of the employees covered by the private plan. Private Plan Operations would then oversee an election in which the covered employees would vote on terminating the plan. The plan will be terminated if a simple majority of the workers covered by the plan vote for its discontinuance.
- The Division of Temporary Disability Insurance.
Should Private Plan Operations determine that there is just cause to terminate a private plan, that plan may be terminated immediately. Should this occur, all parties would be given notice of the termination.
With the exception of termination due to a change in insurer, the workers would automatically be covered by the state plan effective the day following termination. No application forms are required to begin state plan coverage. Liability for contributions to the New Jersey Temporary Disability Trust Fund would also begin immediately upon termination of the private plan.
It is recommended that employers changing from private plan to state plan coverage obtain a supply of State Plan Claim Forms.
For more information on terminating a private plan, or to request termination contact:
Division of Temporary Disability Insurance
Private Plan Operations
Plan Approval Unit
PO Box 957
Trenton, NJ 08625-0957
Telephone: (609) 292-2720
FAX: (609) 292-2537