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An Income Protection Plan for Schwab:
VPA successfully installed a fully-integrated
disability benefit program for Charles Schwab Corporation, which for the first
time, allows an employer to have a single-income protection plan for its
employees nationwide.
This innovative program provides for a single
pretax employee contribution to the company's "Income Protection Plan," which
provides all their short-term Disability benefits that they would normally
receive from many sources such as state disability insurance benefits (in CA,
HI, NJ, and NY), salary continuation benefits that were previously paid by the
employer, and short-term Disability benefits that were previously provided by
the employer when employees exhausted their salary continuation benefits.
This "single source program" allows Schwab
employees to leverage their disability plan contributions for maximum tax
advantages and speeds up the delivery of a single, fully-taxable disability
benefit check to employees nationwide (the average time from the date of
disability to the first benefit check payment is less than two weeks).
Whereas the previous multiple-source disability
benefit system was confusing to employees, the new single-source system clearly
explains what Disability benefits are being paid to him or her and for what
period of time.
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