If you are an Employer that participates in the MEBP Disability Income Plan, contributions to the Disability Income Plan are based on a percentage of the Member’s pensionable earnings.
Effective the first pay issued with a January 1, 2024 payment date, a 1.6% of the Member's pensionable earnings are required for disability income contributions.
The required contributions may be either:
- Shared by the Member and the participating employer; If the Member is responsible for a percentage (i.e. ½) of the contribution, deduct ½ of 1.60% (.80%) of pensionable earnings each pay period.
- Paid entirely by the participating Employer; If the Employer is responsible for the total contribution, deductions are not made from the Member's employment earnings.
- Paid entirely by Member; If the Member is responsible for the total contribution, deduct the applicable rate 1.6% of employment earnings each pay period.
Contributions to DIP cease four months prior to age 65. The Member’s last contribution is made in the pay period where the Member turns age 64 and 8 months.
You, as the Employer, are responsible for collecting and remitting the contributions to MEBP each month. The contributions are not refundable upon termination, retirement or death.
NOTE: Disability Income contributions are not tax deductible. If the Employer pays any portion of the contribution, the benefit is taxable for a Member who receives disability income.