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State Disability Plan contributions change for 1992

There will be no increase in 1992 in the employee contribution to Stanford's Voluntary Disability Plan, the Benefits Office has announced, but those covered by the state-offered alternative will notice a slight increase.

The state of California mandates that certain employers, including Stanford, cover employees with short-term disability insurance. Stanford provides the Voluntary Disability Plan (VDI) in place of the State Disability Plan (SDI).

Employees who waive VDI participation are automatically covered by the SDI plan.

For 1992, the rate of employee contributions to the state plan will increase to 1.25 percent of the first $31,767 of salary, the wage ceiling. The maximum yearly contribution will be $397.09.

There is no increase, however, in the rate of employee contribution to Stanford's VDI plan. For 1992, the VDI rate will remain at 1 percent of the wage ceiling, and the maximum yearly contribution will remain at $317.67. Even though the employee contribution for VDI is less than for SDI, the benefit from the Stanford plan is greater than that offered by the state.

Historically, VDI has paid a higher weekly benefit than SDI. The 1992 VDI weekly benefit will be $350, while the SDI weekly benefit will be $336.



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