Do I have to continue to pay my contributions to the plan while I’m off work?

The DI plan requires that contributions be made by both employee and employer. They are usually made by payroll deductions. Employees on authorized leave without pay (LWOP) have to pay their share of the DI premium (for example, spousal relocation) upon return to duty. In certain circumstances, an employee on LWOP is required to pay both the employee's and the employer's share. When employees become entitled to DI benefits while absent on LWOP, their premiums are waived for both the duration of the LWOP period for which they are in receipt of DI benefits, as well as the relevant part of the elimination period.

If you resign or otherwise terminate your employment during leave without pay, you will still be responsible for paying the outstanding contributions. This is because you were covered during the entire period of LWOP.


September 22, 2013