State Disability Integration Policy Information

Section: 
Employment Policies​

Subsection: 
Employee Benefits and Insurance

Authorized by
Navdeep S. Gill, County Executive 

Revision History
Revised: 05/1989​
​Established: 04/1984

Contact
Policy and Compliance Administrator
Department of Personnel Services
Email: AskDPS@saccounty.gov

5-305: State Disability Integration

Purpose

To outline County procedures for implementing a State Disability Insurance (SDI) Integrated Plan.

Authority

  • Labor agreements negotiated with recognized employee organizations for represented employees. 
  • Personnel Ordinance, Sections 2.78.745, 2.78.750, 2.78.755, and 2.78.765 for unrepresented employees.​

Scope

This applies to County employees. 

Policy

Under the State Disability Insurance (SDI) integrated plan, the County pays the difference between the SDI benefit and the percentage of net salary guaranteed by negotiated labor agreements or the Personnel Ordinance. This benefit is covered by labor agreements negotiated with recognized employee organizations for represented employees and by the Personnel Ordinance for unrepresented employees. 

This procedure applies only to employees who are eligible for the SDI integrated plan and who are disabled and unable to return to work for reasons other than work-incurred injury or illness. ​

This procedure does not apply to employees who are disabled and unable to return to work due to work-incurred injury or illness.  These absences are covered by Workers' Compensation.

Standards of Application

Program Benefits

State Disability Insurance (SDI)

SDI payments insure that workers continue to receive income when they are unable to work because of illness or injury that is not work-related. 

The eligible employee pays for the SDI benefit through payroll deductions. Deductions are based on a percentage of the employee's annual wages to an annual maximum amount established by the State. 

State Disability insurance (SDI) integrated Plan

The SDI integrated plan maintains the eligible employee's guaranteed net biweekly salary. With integration, the County pays the difference between the SDI benefit and the guaranteed net salary, using the employee's available balances of sick leave, vacation, compensating time off (CTO), and holiday-in-lieu hours. 

Special pay allowances not of a permanent nature, such as overtime compensation, standby, night shift differential, call-back or out-of-class pay, shall not be counted in determining the employee's gross or net pay. 

The County contributes to the employee's health, dental, life, and retirement plans in each pay period that the employee receives pay from the County for integrated leave balances. 

Accruals of leave Balances and Service Credits

Employees receiving SDI integration benefits accrue sick leave, vacation, or holiday-in-lieu hours only when they work during a pay period. The accruals, if any, are prorated according to the number of hours worked. 

Employees accrue service credits toward vacation accrual changes and step increases during any pay period of SDI integration. Employees do not accrue service credits toward vacation accrual changes and step increases during any period of leave without pay. 

Employee Eligibility for State Disability Insurance (SDI) Benefits

Eligibility for SDI benefits is established separately from eligibility for SDI integration. 

Eligibility for State Disability Insurance is determined according to standards established in the State of California Unemployment Insurance Code. 

Covered employees may be eligible to receive SDI benefits if: 

  • They are unable to work because of nonwork-related illness or injury that prevents them from doing a substantial portion of their customary work; and 
  • They have received sufficient wages in the base period. The base period used is dependent on the date the claim was filed. 

Eligible conditions may be physical or mental and may include pregnancy, childbirth, or a related medical condition. 

For more information on the base period, refer to the "Disability Insurance Provisions" pamphlet issued by the State Employment Development Department (EDD). 

The State Employment Development Department determines if the covered employee's medical condition meets the SDI requirements.

Eligibility for SDI Integration

To qualify for integration benefits, covered employees must: 

  • Be covered for the integration benefit by a negotiated agreement or the Personnel Ordinance; and 
  • Have accrued leave balances; and 
  • Obtain an approval from the authorized departmental representative to have leave balances integrated with SDI benefits; and 
  • Be eligible for SDI benefits; and 
  • File a 'Claim Statement of Employee' form with the State Employment Development Department (EDD) 

Effective Date of Integration

Integration begins and benefits will be calculated on the first day of the pay period in which the employee's department approves the use of leave balances after submittal of the 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form. 

Under no circumstances can integration begin earlier than the pay period in which the employee submits the above-named form to the authorized departmental representative and the request to use leave balances is approved. 

Payday for the Integration Benefit is the same as regular County payday. 

Disqualification from SDI Integration

When the SDI Clerk, Personnel Actions, Department of Personnel Management does not receive a claim from EDD by the end of the third pay period after integration begins, SDI integration will be terminated and the County will assess any overpayment. 

If the SDI Clerk, Personnel Actions, (DPM) receives a claim from EDD after assessing overpayments and the employee is still off work, has leave balances remaining and the employee's department approves integration of the leave balances, integration may begin again. Any adjustments for overpayments that were made before the claim was received will not be reassessed. 

Procedures 

Employee

Establishes eligibility for State Disability Insurance (SDI) benefits. Files an SDI 'Claim Statement of Employee' form as soon as the employee meets the eligibility requirements above. Claim forms are available from EDD offices; physicians; hospitals; County departmental personnel; and Personnel Actions, (DPM). 

Completes the 'Claim Statement of Employee' section of the SDI claim form. 

Gives claim to physician and/or hospital for completion. It is the employee's responsibility to insure the claim is processed quickly. 

Submits a 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form to authorized departmental representative in employee's department for approval to have leave balances integrated with SDI benefits, and submits a medical statement from the physician in a form acceptable to the department documenting the disability and its anticipated length. In extreme circumstances, such as physical incapacity of the employee, a close relative may submit the request for integration benefits to the authorized departmental representative. 

Integration begins and benefits will be calculated on the first day of the pay period in which the employee's department approves the use of leave balances after submittal of the form. Integration will not appear on the paycheck until the approved 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form is received by the SDI Clerk, Personnel Actions, (DPM). 

While still disabled and on SDI integration, the employee pays any voluntary deductions, such as credit union, insurance, etc., that are not covered by the employee's integrated net pay. 

Arranges with the Group Insurance Section, DPM to pay insurance premiums. Arranges with any other agency, such as the Credit Union, to pay other voluntary deductions. (Refer to the printed statement accompanying integration pay warrants for information about specific deductions affected by integration.) 

If unable to return to work by the estimated date of recovery and still disabled, the employee must submit the required forms to the authorized departmental representative and to EDD. 

Submits to the authorized departmental representative a physician's medical statement documenting the disability, the anticipated length of recovery, and another ' County of Sacramento Integration of Leave Balances with State Disability Benefits' form. 

Submits to EDD another 'Claim Statement of Employee' form. 

Requests Leave of Absence (LOA) from the employee's department in the pay period in which leave balances are exhausted, or SDI benefits end, or is not disabled but unable to return to work by the estimated date of recovery. 

Submits request to authorized departmental representative for LOA on the form provided by the employee's department. 

If disabled, provides the authorized departmental representative with supporting medical documentation. 

Arranges to begin paying voluntary deductions, if not already doing so. 

Notifies employee's department before first working day when returning to work from disability leave. 

Submits physician's 'Release to Return to Work' to the authorized departmental representative. 

California State Employment Development Department (EDD)

Forwards the 'Notice of State Disability Claim Filed' to the SDI Clerk, Personnel Actions, (DPM). 

The medical records of the State are confidential and therefore not available to the County. 

No notification is forwarded to the County from the State when an employee requests an extension. However, the SDI Clerk, Personnel Actions, (DPM), can contact the claims adjustor with the State and request a disability end date. 

Operating Department

Authorized Departmental Representative

Responds to employees questions regarding SDI integration or SDI benefits. 

Forwards the 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form immediately to the departmental payroll/personnel clerk. The SDI Clerk, Personnel Actions, (DPM), must receive the form within three working days from date of request.

Original Request: Approve or deny employee's original request for integration of leave balances and submit the 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form to employee's departmental payroll/personnel clerk. 

Extension Request: Approve or deny employee's request for extension when employee is unable to return to work by the estimated date of recovery and still disabled, and submit to employee's departmental payroll/personnel clerk. 

Revised Request: Act upon revision of a previous request and submit revised form to employee's departmental payroll/personnel clerk. 

Leave of Absence: Approve or deny request for unpaid leave. If denied, place employee in AWOL status and take appropriate action. Submit to employee's departmental payroll/personnel clerk the name of the employee and the employee's status. 

Return to Work: Approve or deny employee's return to work (full-time or part-time) based upon physician’s release, notify departmental payroll/personnel clerk and forward written release from physician to employee's departmental payroll/personnel clerk as required.

Payroll/Personnel Clerk

Maintain SDI packets containing (a) 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form; (b) EDD Claim forms; and (c) Employee News Bulletin. 

Provides information requested by the SDI Clerk, Personnel Actions, (DPM), or other Personnel Actions representative. 

Responds to employees questions regarding SDI integration or SDI benefits. 

Complete 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form and forward to SDI Clerk, Personnel Actions, (DPM). 

Continues as employee's payroll clerk for any period that the authorized departmental representative originally denies and later approves use of leave balances. 

Submits Time Sheets to the SDI Clerk, Personnel Actions, (DPM) each pay period for employees receiving SDI integration benefits. 

Forwards any masterfile changes, adjustment documents, leave of absence forms, or the 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form for employees receiving integration benefits to the SDI Clerk, Personnel Actions, (DPM).

Monitors the date SDI integration ends and takes appropriate action. 

Provides the Leave of Absence form to the employee or authorized departmental representative as required. 

Notifies SDI Clerk, Personnel Actions, (DPM) no later than the employee's first day back at work. 

State Disability Insurance (SDI) Clerk, Personnel Actions Section, Department of Personnel Management (DPM)

Acts as payroll clerk, handling any personnel transactions for the employee upon receipt of the approved 'County of Sacramento Integration of Leave Balances with State Disability Benefits' form from the employee's department. 

Establishes dates of integration period and amount of County contribution. 

Requests the employee's department to supply any information required to complete the claim form. 

Assures that time sheets are received from employee's department each pay period that the employee is on integration. 

Calculates County pay warrant based on the weekly SDI benefit and the applicable negotiated agreement or Personnel Ordinance. For eligible part time and temporary employees, the County contribution also is based on the average number of hours paid, excluding overtime and stand-by, in the three pay periods preceding disability leave. 

Returns completed 'Notice of State Disability Claim Filed' form to EDD within two working days. 

Verifies weekly SDI benefit amount with the State Disability Insurance office. 

Each pay period, sends pay warrant and correspondence to employee. Sends copies of correspondence to employee's department. 

Notifies employee and payroll clerk of the employee's department in writing when SDI integration ends. No longer acts as payroll clerk for the employee after this time. 

When EDD does not forward a claim by the end of the third pay period after integration begins, telephones EDD. If a claim has not been filed, terminates SDI integration and assesses any overpayment. 

Prepares necessary Adjustment Forms to recover the overpayment. Overpayments may include: salary, step increase adjustments, hours adjustments and insurance premiums.​