OR| The Oregon DFR Bulletin 2026-5 clarifies that, following SB 1148, Oregon disability income and short‑term disability (STD) insurers may no longer require workers to apply for or collect Paid Leave Oregon benefits as a condition of receiving STD benefits, but may continue to treat Paid Leave Oregon as an “other benefit” and reduce STD payments accordingly, including by estimating the Paid Leave amount if the worker does not apply for it. It explains that STD remains the last payer when an “Other Benefit” provision applies and requires that, where STD benefits can be reduced due to the availability of Paid Leave Oregon, all plan documents must clearly disclose potential eligibility for Paid Leave Oregon, the lack of any requirement to apply for or accept those benefits, the insurer’s right to estimate benefits if the worker does not apply, and the insurer’s intent to reduce STD benefits for Paid Leave amounts received or eligible to be received. Effective September 1, 2026, insurers must file updated plan documents or endorsements with DFR within 18 months or at renewal, and are expected to maintain actuarially sound rates that reflect reductions for Paid Leave Oregon and other benefits.
Attention Oregon Employers & Insurers: Updated Rules on Paid Leave Oregon as an “Other Benefit”
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