Good Afternoon,
Thank you for your ongoing commitment to Self-Directed Services with Springbrook. This year has been a trying one for all of us. Still, we know that you understand the value of Self-Direction and the shared responsibility for this program's success.
In December of 2019, we announced changes to our fringe rate and PTO accrual and capitation (effective January 2020). Our 2019 assessment showed that, based on the use of PTO by Self-Hired staff, Springbrook paid more in benefits than the 40% fringe rate in effect
at that time. To protect the sustainability of the entire program, we increased the overall fringe rate to 42%.
Click here for more detailed information about those changes.
When we made the PTO and fringe rate changes, we also committed to an annual assessment of our fringe benefits. We made this commitment because we value our Managing Employers' partnership and believe we have a shared responsibility for this program. We have recently completed our 2020 assessment and have some great news to share with you today.
PTO
When we made the 2019 changes to PTO, existing Sick Time balances were
not moved into PTO balances. Existing balances were kept separate, to be used, or sunset by December 31, 2020. We are
extending that sunset period through July 1, 2021 - at that time, any remaining Sick Time balances will end. As a reminder, Sick Time should only be used when ill. Self-Hired Employees
may not use Sick Time and Short-Term Disability simultaneously. PTO accrual and capitation will remain unchanged.
Click here for more detailed PTO accrual information.
FRINGE RATE
We are excited to share that in early January 2021 we will reduce the fringe rate to 39%; the effective date of this change will be announced shortly. We can make this decrease because of Springbrook's exceptional management of health insurance costs in 2020.
As a reminder, the items below make up the fringe rate:
- Payroll Taxes
- NYS Disability
- NYS Unemployment
- Worker Compensation
- Health Insurance
- Life Insurance
- Benefit Time
- Retirement
With your help in managing Benefit Time (PTO) and Springbrook's continued commitment to the responsible management of Health Insurance costs, we can ensure the stability of our program.
