What are the requirements to establish a private plan in Puerto Rico?
The employer can establish a “Private” plan if they meet the following requirements: • The plan must offer benefits at least equal to the Public TDI plan; • The employer can charge employees the same rate or a lower rate than the Public TDI mandated plan, but may not charge more than the mandated plan rate. If significant benefit improvements are offered, the employer may charge the employees for a reasonable portion of the additional cost so long as the employee cost does not exceed the employer cost; • The employer must receive the one-time consent of a majority of the employees (50% plus 1) for the plan to go into effect at which time all current and all future employees are covered by the self-insured plan (there are no exceptions); and • The employer must provide a surely bond in an amount equal to one-half (1/2) of the annual expected employee contributions to the plan. If the sum of all costs (claims and expenses) exceeds the employee contributions (a maximum of 0.3% of the firs
