Lunch-n-Leaves Disability & Leave Services

1. Lunch-n-LeavesDisability & Leave Services Topic #2 State awards: Whatare they Whendo they happen Whydo they cause an overpayment?

2. Voluntary Plan Basics • What is a “Voluntary Disability Insurance Plan”? • Private short-term disability coverage plan only for California resident employees • Legal alternative to the mandatory State Disability Insurance (SDI) • Effective 1/1/2004 includes Paid Family Leave (PFL) known as Family Temporary Disability (FTD) at Stanford • Why is it called “Voluntary”? • Because employees can choose to opt out of the VP and participate in SDI instead DLS Lunch-n-Leaves 3/18/2011

3. Voluntary Plan Basics • Legal Requirements • Rights under VP must be same as those of SDI • Weekly benefit must be the same or greater – never less • VP must provide at least one benefit that is greater than SDI • If SDI increases rights/benefits, VP must also • Governing Authority • California Unemployment Insurance Code (CUIC), Part 2 • Administrative Authority • Director of the EDD has the right to issue regulations interpreting the law. These regulations are contained in Title 22, California Code of Regulations (CCR) DLS Lunch-n-Leaves 3/18/2011

4. What is a State Award? • Remember the legal requirement! • Weekly benefit must be the same or greater – never less • A State Award is the SDI weekly benefit amount times 52 weeks • Example: • Impact: Stanford VP must pay at least $650 per week DLS Lunch-n-Leaves 3/18/2011

5. How: Path of a State Award DLS Lunch-n-Leaves 3/18/2011

6. Sample #1: State Award vs Stanford Award State Award SDI Stanford Award VDI DLS Lunch-n-Leaves 3/18/2011 • Claim Effective Date • 2/22/11 • Wage Base Period • 9/30/09 – 9/30/10 • Wages in Base Period • $87,643.64 • Weekly Benefit @ 55% • $927.00  • Claim Effective Date • 2/22/11 • Wage Base Period • 2/21/11 • Wages • $66,975.50 • Weekly Benefit @ 60% • $772.79

7. How does a State Award Cause an Overpayment? Sample “State Award” Notice Sample Overpayment Notice DLS Lunch-n-Leaves 3/18/2011

8. Sample#2: State Award vs Stanford Award State Award SDI Stanford Award VDI DLS Lunch-n-Leaves 3/18/2011 • Claim Effective Date • 8/14/10 • Wage Base Period • 3/31/09 – 3/31/10 • Wages in Base Period • $40,500 • Weekly Benefit @ 55% • $429.00 • Claim Effective Date • 8/14/10 • Wage Base Period • 8/13/10 • Wages in Base Period • $53,450 • Weekly Benefit @ 60% • $616.73 

9. Sample#3: State Award vs Stanford Award State Award SDI Stanford Award VDI DLS Lunch-n-Leaves 3/18/2011 • Claim Effective Date • 8/14/10 • Wage Base Period • 3/31/09 – 3/31/10 • Wages in Base Period • $0 • Weekly Benefit @ 55% • $0  • Claim Effective Date • 8/14/10 • Wage Base Period • 8/13/10 • Wages in Base Period • $33,247 • Weekly Benefit @ 60% • $383.62 – but . . .

10. VDI Benefit Limited to State Rate • Refer to VP Statement of Coverage Handout • “Benefits will be limited to the State Plan Rate . . .” • Found at: http://benefits.stanford.edu/cgi-bin/health_and_life/disability/ • Disability during first 90 days of employment • What if employee had never worked in California before? • Pre-existing illness or injury during 3 month period preceding date of hire • Plus a few more . . . DLS Lunch-n-Leaves 3/18/2011

11. Got Questions? DLS Lunch-n-Leaves 3/18/2011

12. Contact DLS Manager Patti Smilovitz 6-1196 Leave Analysts Laurie Jarocki 4-9734 Alpha: A - G Rubi Paredes 4-0120 Alpha: H - K Nicole Peixoto 1-1479 Alpha: L - Q Wendy Freeman 5-1024 Alpha: R – Z DLS Email Address: hrleaves@stanford.edu DLS Lunch-n-Leaves 3/18/2011