Benefit Reduction due to FMLA

pattimac

Our LTD premium/benefit is based on our prior year's W-2 gross compensation. We have had a few employees out on FMLA in 2005. When I report the new LTD premium amounts to the carrier do I reduce the premiums for those that took FMLA based on the fact that their W-2 is reduced because of time off without pay? We have never had any employees take a LOA without it being FMLA so we have not set a precedence for someone on leave. If I do reduce the premium/benefit will this be taking away a benefit (lowering the LTD benefit amount)they would have received had they not been on FMLA? And if so, is this allowed under FMLA?

HRCalico

I'd take the easy way and the first thing I'd do is call my LTD carrier or agent and ask them how to handle it (I befriended my various agents when I started and now they're glad to "earn their commission" when I call). It seems I remember reading something on FMLA that if there was a bonus for something like attendance, they wouldn't be eligible because they weren't there. This may be somehow related.

SMace

It is NOT allowed under FMLA.