Wage Insurance (Disability Insurance)
The City of Madison offers optional Disability Income Continuation Insurance (Wage Insurance). This plan is open to all permanent City employees. Wage Insurance plans are an individual contract between the employee and the insurance provider. The City may pay a percentage of the premium, up to 100%, based on an employee's use of sick leave.
Note: Because Wage Insurance is not administered by the City, medical certification received by the Wage Insurance provider is not automatically received by the City. You must submit medical certification to the City to qualify for Family & Medical Leave, as well as any other benefits provided by the City.
New employees may sign up upon starting employment with the City by completing an Enrollment/Change Form. Employees who do not enroll during the initial 31-day enrollment period must go through underwriting (form available from Human Resources) to determine their eligibility.
Wage Insurance covers non-work-related injuries and illnesses preventing the employee from working. Employees are insured up to 65% of their regular salary, and must use all available sick leave before being eligible to receive benefits from the program.
Benefit Plans
The insurance pays short and long-term benefits. Employees are eligible to receive short-term benefits for up to three years as long as the employee is totally unable to perform their job functions. Following the three years of short term benefits, long-term benefits are available until the employee’s normal retirement date. Under this policy, the normal retirement date is age 65 for employees other than police officers and fire fighters.
Premiums
Premiums are based on a combination of salary and sick leave usage. Employees using less than 3 days of sick leave during the tracking year will not have to pay any premium for Wage Insurance. Employees using between 3 and 7 days of sick leave will pay a prorated premium amount. Employees who maintain 100+ accumulated sick days will not have to pay a premium, regardless of the amount of sick leave used in the tracking year.
| Sick Leave Used (days) | Employee Pays (% of premium) |
|---|---|
| 0.00 – 3.00 days | 0% |
| 3.01 – 4.00 days | 20% |
| 4.01 – 5.00 days | 40% |
| 5.01 – 6.00 days | 60% |
| 6.01 – 7.00 days | 80% |
| 7.01 + days | 100% |