Stanford Report, June 9, 2004

New state disability insurance benefit program debuts July 1

Effective July 1, all California employees who participate in the Stanford Voluntary Disability Insurance plan (VDI) or the State Disability Insurance plan (SDI) will be eligible to participate in the new California Family Temporary Disability (FTD) insurance benefit program. The FTD insurance benefit program, which is funded by employee contributions to VDI/SDI plans, extends disability benefits to provide partial wage replacement to employees on approved leaves of absence to care for a seriously ill family member or to bond with a new child.

FTD insurance benefits are available concurrently with the federal Family Medical Leave Act (FMLA), the California Family Rights Act (CFRA) or with personal leave for those who are not covered by FMLA/CFRA.

The new law does not create any new leave rights. It does not require an employer to grant the time off or create new job protection or return-to-job rights.

On Jan. 1, 2004, the VDI/SDI tax rate was increased to fund the new FTD insurance benefit program. FTD benefits paid through VDI will replace 66 2/3 percent of an employee's lost wages to a maximum of $728 per week. Employees may receive up to six weeks of FTD insurance benefits in a 12-month period. FTD benefits can be received for consecutive days or intermittently. For VDI participants, the FTD insurance benefit program will be administered by Stanford's disability benefits administrator, Sedgwick Claims Management Services. For SDI participants, the program will be administered by the California Employment Development Department.

An employee who applies for FTD insurance benefits must meet a number of eligibility requirements. These include, but are not limited to:

  • A seven calendar-day waiting period before benefits are paid.

  • The requirement that an employee use up to two weeks of accrued vacation prior to receiving FTD benefits (one week of vacation may count toward the waiting period).

  • Medical certification from the care recipient's health care provider is required when benefits are sought due to an employee's need to provide care for a seriously ill family member. The certificate must state that the serious health condition warrants the participation of the employee and that no other family member is ready, willing, able and available to provide care.

  • A separate certification is required when the leave is associated with the birth, adoption or foster care placement of a child.

A detailed list of questions and answers about the new program can be found online at http://benefitsu.stanford.edu.

Employees with specific questions or who need information about how to apply for FTD benefits should contact their human resources officers. Stanford Linear Accelerator Center employees should contact the SLAC Benefits Office at 926-2356.