Laws Regarding Long-Term Disability
Laws regarding long-term disability protect workers in the event that they become disabled before retirement. This protection comes in the form of governmental programs or private workplace insurance. To receive benefits, patients must have the support of their physicians for proof of disability.
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Social Security Act of 1935
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The Social Security Act (SSA) of 1935 generated an assortment of programs--elderly pensions, public assistance, unemployment compensation and health insurance--to aid numerous groups of Americans. It was amended to include disability insurance in 1956. This provides support to people who cannot work due to a permanent disability but have previously earned income and paid taxes long enough to meet the established requirements.
Employee Retirement Income Security Act of 1974
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The U.S. Department of Labor states that the Employee Retirement Income Security Act (ERISA) of 1974 is a “federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.”
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The Americans with Disabilities Act of 1990
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The Americans with Disabilities Act (ADA) of 1990 defines disability as “a physical or mental impairment that substantially limits one or more major life activities.” That impairment must be documented to receive any type of benefit or compensation from insurance companies or government entities.
Private Workplace Long-Term Disability
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Kiplinger.com reports that long-term disability group plans are offered in about 40 percent of medium- to large-sized companies; most small companies fail to offer such insurance. Few laws govern private long-term disability insurance; coverage is based on terms of a contract and is only subject to laws regarding breach of contract.
Disability Facts
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The Social Security Administration states that three out of 10 individuals may become disabled in their working years before reaching retirement age.
As of December 2009, MSNBC.com reported that disability filings are up 30 percent in the last two years.
Nearly 7 million workers currently receive Social Security Disability benefits, according to the Council for Disability Awareness. Almost half are under the age of 50.
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