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1 NON-INDUSTRIAL DISABILITY INSURANCE (NDI) OVERVIEW WHAT IS NON-INDUSTRIAL DISABILITY INSURANCE (NDI)? NDI is a wage continuation program that provides income for eligible employees who are disabled and unable to work due to a non-work related injury or illness. The Chancellor's Office has program responsibility for CSU employees. The NDI program is administered by the State of California Employment Development Department (EDD). Employees receiving NDI benefits are not eligible to receive Workers' Compensation Temporary Disability, Industrial Disability, or Unemployment Insurance benefits simultaneously. Note: The Family Temporary Disability Insurance (FTDI) Program (a.k.a. Paid Family Leave ), which is part of the State Disability Insurance (SDI) program administered by EDD, is for employees whose employers are covered by the SDI program. The CSU IS NOT COVERED BY THE STATE DISABILITY INSURANCE (SDI) PROGRAM, which is a requirement to participate in the FTDI. The CSU offers eligible employees NDI benefits (employer funded) and CSU FML, which requires employees to utilize appropriate leave credits before going on an unpaid leave. So, in essence, CSU employees DO have paid family medical leave. ELIGIBILITY FOR BENEFITS A CSU employee who suffers a disability or injury which is not work-related may receive NDI benefits if all of the following four conditions are met. The employee: 1. Is an active PERS/STRS member in compensated employment, and 2. Is a: a. permanent or probationary full-time CSU employee, regardless of period of service, in compensated employment, or b. permanent or hourly CSU employee who has permanent status with at least the equivalent of six monthly compensated pay periods in service in the 18 months of pay periods immediately preceding the pay period in which disability begins. To qualify for the six monthly compensated pay periods of service in the 18 months of pay periods the employee must have been compensated for time worked during at least six of the 18 months prior to the pay period in which the disability begins. The amount paid could be as little as one hour each month for six months, but there must have been some compensation, or c. employee of the CSU appointed half-time or more for one year of service or one academic year or more, and 3. Has a disability which has been verified and accepted by the Employment Development Department (EDD), and 4. Submits to a medical examination if requested by EDD. An employee is NOT eligible for NDI benefits: With respect to any period for which an employee has received or is entitled to receive Unemployment Compensation benefits. For any day of unemployment and disability for which he has received, or is entitled to receive, other benefits (e.g., Temporary Disability) unless other such benefits are less than the amount the employee would otherwise receive as NDI benefit. The employee shall then be entitled to NDI for each full day, reduced by the amount of other such benefits. For any day on or after death; retirement; or, separation due to: o Resignation o Dismissal Rejection During Probation o Layoff o Expiration of a Temporary Appointment (Note: The expiration date of a temporary employee's appointment may not be extended, nor may the employee be reappointed during the period of NDI.) QUALIFYING DISABILITY An individual shall be deemed disabled on any day in which, because of his/her non work-related physical or mental condition, he/she is unable to perform his/her regular or customary work. Disability or disabled includes mental or BENE-NDIProgramOverview.pdf Rev. 05/25/2012 Page 1 of 5

2 physical illness and mental or physical injury, including any illness or injury resulting from pregnancy, childbirth, or related medical conditions. The EDD is responsible for making all disability determinations following receipt of a claim. WAITING PERIOD The eligible disabled employee must serve a seven (7) consecutive (calendar) day waiting period commencing on the first full day of disability for each period of disability. However, if the employee is confined in a hospital or EDD-approved nursing home for one full day, the waiting period may be waived. The waiting period may be with or without pay depending upon whether the employee has accrued sick leave, vacation, CTO, holiday credit, etc., to cover the time. USE AND ACCRUAL OF LEAVE CREDITS 1. Prior to going on NDI, regardless of full or partial day, the employee must exhaust sick leave before any NDI benefits can be paid. 2. The employee may elect to use accrued vacation, CTO or personal holiday prior to receiving NDI benefits. If the employee elects to use any of these credits, all of the selected credits must be used before NDI benefits will be paid (e.g., if the employee elects to use accrued vacation, all of the accrued vacation must be used before NDI benefits will be paid). 3. Once the designated leave credits are exhausted, NDI begins and, if the employee works a partial day, he/she accrues prorated leave credits. BENEFIT AMOUNTS NDI is payable monthly for a period not exceeding 26 weeks for any one disability. The 26-week benefit period shall be equivalent to 182 calendar days. Calendar days on NDI will be based on the State Pay Period Calendar. EXAMPLE: An employee is on NDI for the entire month of August Inclusive dates on NDI would be August 2 through August 31, 2011 and the employee would be due 30 days of NDI for the August 2011 pay period. An eligible employee who is a member of one of the following eligible employee categories may receive up to 26 weeks (182 calendar days) in an amount equal to one-half full pay not to exceed the following maximum amounts (whichever is less) for any one disability benefit period: NDI Weekly* Benefit Amounts Per Employee Category Employee Category Weekly NDI Benefit Unit 3 Faculty $125 Unit 4 Academic Support $125 Unit 6 Skilled Crafts $125 Unit 8 Public Safety $125 E99 Excluded $125 Unit 11 Teaching Associates $125 Unit 1 Physicians $135 Unit 10 Operating Engineers $135 Unit 2 Health Care Support $250 Unit 5 Operations Support $250 Unit 7 Clerical/Administrative Support $250 Unit 9 Technical and Support Services $250 C99 Confidential $250 M80 Management Personnel Plan (MPP) $250 M98 Executive Management $250 Unit 11 Grad Assistants & Instructional Support Assistants Not eligible FERP Faculty Early Retirement Program Participants Not eligible RA Retired Annuitant Not eligible *Based on a seven (7) calendar day period. BENE-NDIProgramOverview.pdf Rev. 05/25/2012 Page 2 of 5

3 HOW TO APPLY To obtain an NDI First Claim for Non-Industrial Disability Insurance (DE8501) form, contact the Benefits & Workers' Compensation Unit at Assignment of Responsibility NDI PROCEDURES When an eligible employee becomes disabled due to illness or injury, the parties involved shall follow the procedures below: Responsible Party Supervisor of Disabled Employee (SDE) Payroll Office (PO) Attending Physician (AP) Disabled Employee(DE) EDD Payroll Office (PO) Required Action DE reports disability to immediate supervisor. DE indicates whether vacation and/or CTO will be used. Upon being notified by DE or upon learning of a disabling illness or injury, the SDE will immediately contact the Benefits & Workers' Compensation Unit to prepare NDI First Claim for Non-Industrial Disability Insurance (DE8501) form. SDE indicates whether DE is electing to use vacation, CTO and/or PH. BWC completes Part A of DE8501 in its entirety and delivers or mails to the DE or the DE's agent. BWC forwards Notice of Leave (NOL) form to DE's area administrator, SODE and area's PO technician. PO will discontinue DE's Direct Deposit The DE8501 should be filed with EDD immediately if the anticipated recovery date occurs after the employee's accrued sick leave (and other elected leave) will run out, but not later than 20 days after the employee's sick leave (and other elected leave) has been used. The DE will complete Part B of Form DE8501 and request attending physician to complete Part C of same form. The AP will complete Part C of Form DE8501. AP mails the completed form to: State of California Employment Development Department (NDI) Post Office Box 2168, Stockton, CA The DE will confirm that the attending physician has mailed the completed DE8501 to EDD. Upon receipt of the DE8501 from the AP, the Claims Examiner will determine whether the claim is valid, etc. If the claim is valid, EDD will authorize benefit payment (via DE8500A) to the BWC indicating the period of eligibility for NDI benefits. Upon receipt of the DE8500A from EDD, the BWC will forward a copy of the DE8500A to the PO. As necessary, the BWC will forward updated NOL form to DE's area administrator, SDE and PO. PO requests NDI pay from State Controller's Office based on EDD's DE8500A which authorizes payment of NDI benefits. PO notifies employee and responds to DE's questions regarding: a) When a salary advance will be requested and available for the employee; b) what type of pay the salary advance represents (leave credits, NDI, cat leave, etc.); and c) the pay that has issued and deductions from paychecks. BENE-NDIProgramOverview.pdf Rev. 05/25/2012 Page 3 of 5

4 Responsible Party (continued) Required Action (continued) If DE remains disabled beyond the estimated returnto-work date, the DE shall complete and submit a completed Physician's Supplementary Certificate (DE8500B) to EDD, as necessary. BWC will respond to DE's questions regarding eligibility or number of days authorized and leave usage for disability leaves. When the DE returns to active work status, he/she will need to go to the Human Resources Service Center (Kendall 220) to reinstate Direct Deposit of paychecks. BWC notifies PO (via NOL form) and EDD that employee has returned to active work status. DEDUCTIONS TAKEN OUT OF NDI CHECKS 1. Federal and state income taxes, social security; 2. Any employee contributions for health and dental insurance premiums (State contributions will continue) unless the employee opts to cancel them; and 3. All voluntary miscellaneous deductions (i.e., credit union, insurance contributions, tax sheltered annuities, etc.) unless the employee opts to cancel them. WHILE RECEIVING NDI BENEFITS, THE FOLLOWING WILL BE DISCONTINUED: 1. PERS/STRS service credit (including the State's contribution); 2. Sick leave, vacation and service credit accrual; and 3. Direct Deposit (when the employee returns to work status, he or she will need to go to the Personnel window to reinstate Direct Deposit of paychecks. EFFECT ON PROBATIONARY PERIOD 1) Non-Academic and Administrative Employees - Except as otherwise provided in Title 5, California Administrative Code, time spent on a Non-Industrial Disability Leave shall not be counted as part of any required probationary period. The remaining portion of the probationary period shall be completed following the employee's return to active employment. A partial return to work does not constitute a return to active service for this purpose. 2) Academic Employees - An academic year during which a probationary faculty member is on disability leave may not be counted toward the acquisition of tenure unless: a) The academic member has served full-time for at least one-half the number of academic work days in the campus calendar for the academic year in question, and b) Such full-time service has, in the judgment of the President or designee, been of sufficient duration to provide an adequate opportunity for evaluation of the involved faculty member's contribution to the institution during that academic year; or c) If the conditions in items (a) and (b) are not met, the year in question shall not count toward the acquisition of tenure, but the disability period does not constitute a break in service. 3) Academic Closely-Related Employees - The concepts in item 2 shall be applied to all academic closely-related employees. PARTIAL RETURN TO WORK An employee receiving NDI benefits, who is released by the physician to work only part-time, shall be eligible to continue receiving NDI benefits for the days on which he/she is disabled for four or more hours. The disabled employee shall receive wages for hours actually worked and NDI payments for the balance of the work day. NDI benefit payments, plus wages, shall not exceed full pay for that day The employee may use vacation credits on the books (if not used prior to going on NDI) or may use accrued sick leave or vacation hours earned (as the result of working the partial day) to charge if absent for the partial day of work. The employee MAY NOT stop NDI to access vacation credits for the portion of the day designated as NDI. BENE-NDIProgramOverview.pdf Rev. 05/25/2012 Page 4 of 5

5 FAMILY AND MEDICAL LEAVE (FMLA) ENTITLEMENT For CSU FML eligible employees, the NDI disability period will be counted as part of the twelve-week CSU FML entitlement (which includes Family and Medical Leave Act (FMLA) and and/or California Family Rights Act (CFRA) entitlements unless the disability period is due to pregnancy disability leave (PDL). TEMPORARY SUSPENSION OF PERMANENT PARKING DECAL 1. Employees that purchased a permanent type of parking decal (R, F/S) and who want to temporarily suspend use of it due to family medical leave (i.e. family care, maternity, paternity, adoption and parental leave) or disability leave may return the decal to Student Financial Services (Student Services Center 230) and request in writing that their decal and payroll deduction be temporarily suspended. The decal/payroll deduction may be temporarily suspended for up to three 30-day pay periods. There is no pro-rata refund for a returned permanent decal. 2. To initiate the temporary suspension period and to avoid an additional month's parking fee, the employee must return the decal AND submit the written request to Student Financial Services by the 3rd day of the month to allow ample time to process the request for that month. 3. The University may sublet any temporarily suspended decal. 4. The employee must pick up their decal at Student Financial Services (SSC 230) during office hours within five (5) working days after the end of the suspension period or he/she will forfeit their right to the decal. DISTRIBUTION OF YOUR MONTHLY PAY WARRANTS OR SALARY ADVANCES Your pay warrant and/or salary advance will be distributed to your department while you are receiving NDI payments. If you wish to have your pay warrants/salary advances mailed to your home address, please contact Student Financial Services at (530) BENE-NDIProgramOverview.pdf Rev. 05/25/2012 Page 5 of 5

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