In a long-term disability plan, a non-contributory plan is a group disability insurance plan where the employer pays the entire cost of the disability insurance premiums on behalf of its employees.
Under a non-contributory plan, employees are not required to make contributions or pay premiums toward their disability insurance coverage. Instead, the employer bears the full cost of the premiums.
Non-contributory plans may be offered as part of an employee benefits package, and can be a valuable perk for employees who may not be able to afford individual disability insurance on their own.
It’s important to note that non-contributory plans may have different terms and conditions than individual disability insurance policies, and may have limitations or exclusions on certain types of disabilities or benefits. Therefore, it’s important for employees to carefully review the terms of their non-contributory disability insurance plan and understand the scope of their coverage.