Legal Question in Employment Law in Pennsylvania
Today is 6/25/10. I have been on medical leave since 9/18/09. I am receiving disability income-insurance payments via an employer-sponsored disability insurance plan. My claim has been approved through 1/3/12.
Today, my employer call to inform me that my department is being dissolved due to lack of funding. Several people will be laid-off next week, as a result. Because the whole department is being cut, this is not an ADA or EEOC violation. How does this affect my insurance claim though? Since this is an employer-sponsored plan, do I lose my disability claim payments once my position is terminated? Or is the insurance company required to continue payments for the duration of my approved claim?
1 Answer from Attorneys
You will not lose your benefits due to dissolution of a department alone. It is highly likely that these benefits have been funded by purchase of an insurance contract. If that is the case, your benefits are sound and unaffected by changes in the business as a whole, not just departmental changes. If the plan is self-funded by the employer, you should not have any problems as long as the business itself is sticking around.
Given the length of time you have been out, I recommend that you consult with a Social Security attorney to discuss your eligibility for SSD benefits. (Your plan may have already required you to file.) Employer sponsored disability benefits can be stopped by the administrator's decision alone and your appeal rights are extremely limited. SS benefits are far more secure if you can get on them. Feel free to call me or email me if you have any additional questions. 610-213-0606 or [email protected]
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