Disability Management at Weyerhaeuser Company 3rd International Forum on Disability Management Brisbane, Australia Presented by Mike Rushby October, 2006 14-Jul-11 1 Agenda Overview of Weyerhaeuser Weyerhaeuser Company Weyerhaeuser in Canada Disability Management Redesign Principles – Development – Key Learnings Redesign – Implementation 14-Jul-11 2 14-Jul-11 3 Weyerhaeuser 100+ years in business Over US $22.6 billion in sales 49,900 employees in 18 countries Focused on <1 RIR 14-Jul-11 4 14-Jul-11 5 Disability Management Redesign in Weyerhaeuser Principles Key Learnings Redesign Implementation Development 14-Jul-11 6 Disability Management Process Principles Treat employees with dignity and respect (DM) process is a partnership amongst employees, health service providers, benefit providers, unions, and Weyerhaeuser with a shared commitment to returning the injured or ill employee to work We will make reasonable efforts to provide suitable available employment to an employee…unable to resume normal duties… Return to Work programs will be developed by Weyerhaeuser business units... the goal of RTW is to return employees to meaningful & productive work in a safe & timely manner 14-Jul-11 7 Disability Management Process Redesign… What has changed? Disability Management CoE Return to Work (RTW) 14-Jul-11 8 Disability Management Process Disability Management CoE Focused, end to end process for North America Reduced cycle time for benefits processing (STD, LTD) Single point of contact for employees and managers for: Occupational and non-occupational injury and illness Return to work processes Tracking and reporting system to measure costs, trend improvements, etc. 14-Jul-11 9 Disability Management Process Return to work RTW will focus on both occ and non-occ absences Clearly defined RTW programs that include meaningful / productive work Effective unit-based RTW programs in all Weyerhaeuser operations Decreased premium and plan costs associated with injury and illness Minimized disruption to the organization created by long-term absences of employees 14-Jul-11 10 Disability Management Process Return to work – cont’d. Canada to pilot RTW process 14-Jul-11 11 Disability Management Process Development Phase Disability Management Stages / Flow Chart Disability Management Web Page 14-Jul-11 12 NON-OCCUPATIONAL FLOWCHART Third Party Employee Manager ESC RTW Coord. Disability Mgmt (incl. HR) C C C Calls ESC and • Inputs into system Notifies manager of • Asks ID of RTW Sends STD form to provides STD coordinator injury/illness employee information • Assigns case number NOTIFICATION • Sends remedy ticket to disability management C • Sends out COBRA letters to employee Seeks medical home address attention Completes STD forms • Sets up claim Returns disability and sends to • Verifies eligibility certification and disability mgmt and • Inputs payment RTW limitations physician (C=carrier) information C C Issues initial payment Completes COBRA Maintains contact Obtains the medical • Advises of date for Physician returns self-pay form and with employee/family/ limitations that allows continuation form continuing disability returns to Cigna RTW coordinator for RTW • Provides continuation certifications form for physician to certify additional time loss IMPLEMENTATION Receives interim • Provides medical RTW coordinator and medical treatment limitations to RTW manager develop coordinator and certification for RTW plan continued time loss STD C Sends new RTW C Physician approves Cooperates with Manager and RTW plan, JA’s to doctor, Receives RTW plan RTW plan and returns return to work coordinator develop employee and and physician’s plan to disability program RTW plan disability mgmt approval management Sends notice regarding LTD application at 16 weeks C Manager/employee Changes disability C C RTW IMPLE- MENTATION implement RTW status in system Monitors RTW plan Discontinues or Returns to regular or plan • Sends remedy adjusts time loss modified work • Notify ESC of RTW ticket to disability payments date mgmt END END END END END END WEEKS 26 OR OR OR • Initiates LTD C Completes UNUM or process third party LTD • Initiates social application form security disability (C=Maritime Life) IMPLEMENTATION award process (C=CPP/EI process) UNUM or third party vendor processes LTD LTD claim • Initiates disability (C=Maritime Life) retirement (Vanguard) Social security admin determines eligibility for END Monitors process and SS benefits. Benefits advises employee COE determines eligibility for retirement 14-Jul-11 13 END END 5/17/02 • 1 OCCUPATIONAL FLOWCHART Employee Third Party Manager ESC RTW Coord. Disability Mgmt (incl. HR) C C Notifies supervisor/ Conducts incident manager of investigation and injury/illness reports to SHIMS NOTIFICATION Seeks medical C Manager/supervisor attention may accompany • Takes RTW form employee to first visit with him/her to with physician • Enters information in C physician • Sets up claim system. • Reviews medical C • ID RTW coordinator limitation Physician provides • Sends COBRA • Determines medical reports Reports disability letters compensability (initial report) to status to ESC • Assigns case • Inputs payment info disability mgmt number • Reports limitations to • Treatment plan RTW coordinator • Sends remedy ticket • Work limitations • IF RTW, claim closure, C Completes manager C to disability no permanent disability Completes claim form portion of claim form management — provides form to and forwards to manager for manager disability portion management C Employee RTW C C Issues initial and Maintains contact Physician continues Receives medical ongoing payments; END with employee/family/ to provide medical limitations that allow provide RTW RTW coordinator reports, RTW IMPLEMENTATION for RTW information to RTW WORKERS’ COMP OR information coordinator C Receives interim Manager and RTW Sends new RTW plan C Physician approves medical treatment and JA’s to doctor, RTW plan and returns coordinator develop and disability employee and to disability RTW plan certification disability mgmt management Physician continues to provide treatment information — medical status to disability mgmt • Follows state law process for RTW • Discontinues/time loss IMPLEMENTATION Implements RTW payments or adjusts plan • Advises of LTD application process • Maintains contact with RTW employee, manager Physician advises C C and RTW coordinator Advises employee of disability mgmt of RTW regular or Changes disability medical stability/ change in disability Monitors RTW plan Disability mgmt modified status in system appropriation for status processes claim for closure closure END END END END END Weeks 26 OR OR OR • Initiates LTD C HR completes UNUM or process (UNUM) third party LTD • Initiates social application form (C=Maritime Life) security application IMPLEMENTATION process Monitors process and • Initiates disability advises employee UNUM or third party retirement process vendor processes LTD LTD (Vanguard) claim (C=Maritime Life) Closes claim per END individual state requirements Social security admin. determines eligibility for SS benefits. Benefits COE determines eligibility 14-Jul-11 for retirement 14 END END 5/30/02 • 1 Disability Management Process Development Phase Cont’d… DM Web Page Available to all employees Expectations of all parties in the process are well defined Best practices identified Q&A for common issues 14-Jul-11 15 Disability Management Process Implementation General Senior leadership has approved one-company Disability Management process “Return to Work” Standard is a component of the Weyerhaeuser Safety Audit All Canadian units will have Return to Work Standard in place prior to January 1, 2004 14-Jul-11 16 Disability Management Process Implementation Business Case Emphasizing the Business Case is the key to successful implementation Eliminating confusion and energy loss with our current system by establishing a one company, reliable process Duty to accommodate is a requirement in USA and Canada (distinction between occupational and non-occ is no longer acceptable per ADA in USA and Human Rights in Canada) Cost savings through early RTW 14-Jul-11 17 Disability Management Process Key Learnings… Canadian Return to Work Pilot Linking RTW to an overall company strategy through the safety audit process has created energy and focus A common approach to RTW facilitates fair / equitable treatment of employees, employer cost savings and a more positive economic and social impact for the employee 14-Jul-11 18 Disability Management Process Implementation Results (Canadian RTW Pilot) Improved, productive relationships with disabled employees 25% reduction in lost productive work days due to illness or injury Overall cost reduction of $12 MM / year 14-Jul-11 19 Disability Management Process... 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