Ready or Not, New Disability Claims Procedures Take Effect April 1

Failure to comply with claim-review requirements can put employers at risk

March 27, 2018 By Stephen Miller
Society for Human Resource Management

The U.S. Department of Labor's (DOL's) new procedures for processing disability claims take effect April 1. Any employer-sponsored plan that deals with disability claims should be amended as needed. If plan documents have not yet been updated, employers should still prepare to handle claims under the new procedures, benefits attorneys advise.

What's New

The final rule, published in the Federal Register in December 2016, originally was to apply to all claims submitted as of Jan. 1, 2018, but in November 2017 the DOL delayed the final rule's implementation date by 90 days.

The rule is intended to give U.S. workers new procedural protections when dealing with plan fiduciaries and insurance providers that deny their claims for disability benefits.

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