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VPA's California Voluntary Disability Insurance
Update for 2003
December 2002
Calabasas, Calif., Dec. 30 – The Employment Development Department (EDD)
announced the 2003 plan changes for California Voluntary Plans (VP). The State
Disability Insurance (SDI) withholding rate will remain at 0.9% for the
calendar year starting January 1, 2003. The maximum weekly benefit will
increase to $602 per week from $490 per week. The SDI taxable wage limit will
increase from $46,327 to $56,916 per employee.
New Maximum Benefit and Taxable Wage Base for 2003:
| Year |
SDI Taxable Wage Base |
SDI Maximum Weekly Benefit |
SDI Contribution Tax Rate |
SDI Maximum Tax Contribution |
| 2002 |
$46,327 |
$490 |
0.9% |
$416.94 |
| 2003 |
$56,916 |
$602 |
0.9% |
$512.24 |
In addition, three other significant plan changes for 2003 are:
-
Employee-funded VP trust funds must be maintained in a separate, specifically
identifiable account in a financial institution.
-
The Disability Insurance base period is redefined to be consistent with the
Unemployment Insurance (UI) base period.
-
The EDD is granted authority to assume payment of VP benefits in specified
instances when EDD terminates a VP. Upon termination, VP trust funds must be
remitted to EDD.
For the full text of the EDD letter, please
click here - PDF
or
call Bob Trotta at (800) 473-9761 x 3040.
About VPA, inc.
VPA Inc. helps employers solve the challenges
associated with administering and managing complex absence and self-funded
disability programs, including FMLA, short-term, long-term, and state
disability benefit plans. VPA’s clients include PepsiCo, Hewlett-Packard, Yum!
Brands, Edison International, and Charles Schwab.
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