This plan covers the majority of California employees. The State pays full SDI for a maximum of 52 weeks.

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  The maximum number of weeks may be less than 52 if the worker did not earn enough to qualify for 52 weeks of benefits.

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  The benefit period may be longer than 52 weeks when a benefit reduction is involved (i.e., the worker may receive a reduced benefit amount which extends the life of the claim).

This is a private employer plan, approved by the State, which allows an employer to pay SDI benefits directly, rather than through the State Plan. It must offer greater rights to employees covered by the plan than the State-administered program, e.g., weekly benefits in excess of the maximum or an extension of benefits beyond the usual 52-week limitation.

The amount received by the worker from a voluntary plan is the offsettable amount even where the maximum shown in DI 52135.030I.1., Exhibit 1 is exceeded.

Payment of SDI under a voluntary plan may exceed 52 weeks. Offset applies for the entire period for which SDI is paid under the voluntary plan, even if it exceeds 52 weeks.

This is an optional plan for self-employed workers and employers for coverage under SDI. A maximum of 39 weeks’ benefits may be paid.

Some California State employees do not contribute to the SDI fund and so they cannot receive SDI. NDI is the State employee version of SDI.

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  Private employees

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  State and local government employees if the SDI benefit is based on State or local employment not covered under Section 218 of the Social Security Act

State and local government employees whose SDI benefit is based on State or local employment all or “substantially all” (i.e., 85 percent or more) of which is covered under Section 218 for Social Security purposes. See DI 52125.001C.3. for a definition of “substantially all.”

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  SDI bases benefits on a Weekly Benefit Amount (WBA) and pays biweekly.

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  Offset the gross amount of the weekly SDI benefit unless the benefit is reduced and the type of reduction is not offsettable (see DI 52135.030F.2. in this section).

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  Offset for the number of weeks of SDI benefit receipt excluding known periods of disqualification. See DI 52135.030F.1. in this section.

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  See DI 52135.030I.1. - Exhibit 1 Maximum weekly SDI rate and duration chart.

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  For disabilities that began on or after 01/01/1994, the State assesses a mandatory 7-day, non-payable waiting period.

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  The start date will equal the Claim Effective Date (CED) + 7 days for disabilities beginning 01/01/1994 or the CED for disabilities beginning prior to 01/01/1994. (The CED is also referred to as the “date claim established” on some State forms.)

  EXAMPLE: If the CED is 04/01/2008, impose offset beginning 04/08/2008 (CED + 7 days), unless the evidence shows that the SDI payments began later.

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  The start date can be later than CED + 7 if the worker was disqualified or otherwise not eligible for payment until a later date.

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  Use the beginning date shown on the evidence for the period represented by the first SDI check if this is consistent with the CED and waiting period.

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  Enter the actual start date in MCS and ICF WC/PDB even if the date is earlier than the DIB month of entitlement

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  The ending date will appear as the “THRU” date shown on the final SDI payment stub containing the heading “Notice of Exhaustion of Disability Benefits” or as the “END” date shown for the last check on an EDD abstract (the account balance should show zero).

  NOTE: The ending date for the last SDI payment as shown on the EDD evidence may be incorrect if the amount of the last payment in benefit exhaustion cases is not an even multiple of the Weekly Benefit Amount (WBA).

  EXAMPLE: WBA = $423.00 and the last check is shown as $423.01 for 8 days ending 08/06/2008. The 1-cent fraction is a carryover in the EDD system from the rounding of prior payments; the system treats the fraction as a whole day, moving the ending date.

  To determine the correct ending date in this situation, divide the gross amount of the last payment by the daily rate (daily rate = WBA divided by 7and use 10 decimal places to follow EDD's formula in computing SDI payment amounts--do not use the EDD “Daily Benefit Amount”) and round to the nearest whole day. If the result equals the number of days shown for the last payment then the ending date shown is correct. If the result is one day less than the number of days shown, subtract one day from the ending date. Any other result, or if the Maximum Benefit Amount (MBA) is for less than 52 weeks or the SDI record shows a balance other than zero, requires further review of the EDD payments. These types of situations can result in true partial day payments, therefore, it may be necessary to enter the partial day amount in ICF by showing a period of one day and a weekly rate equal to the partial day amount times 7. In the example above, the correct ending date is 08/05/2008 ($423.00/7=$60.4285714285; $423.01/$60.4285714285 = 7 days).

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  Partial day payment example:

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  WBA = $758.00 and the last check is shown as $994.58 for 10 days from 08/01/2008 through 08/10/2008. The correct ending date is 08/10/2008 with a partial day payment on 08/10/2008.

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  WBA divided by 7 = $758.00/7 = $108.2857142857;

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  Check divided by daily rate = $994.58/108.2857142857 = 9.18477575 days;

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  Daily rate times 9. days = $108.2857142857 x 9 days = $974.5714285713 (this is the portion of benefits allocated to 9 days from 08/01/08 - 08/09/08;

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  Check amount minus 9 days of benefits = $994.58 - $974.5714285713 = $20.0085714287 remaining amount for partial day;

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  Partial day amount times 7 days = $20.0085714287 x 7 = $140.0600000009 (round final result to 2 decimal places) = $140.06 weekly for 08/10/2008 - 08/10/2008

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  If the Payment stub contains the heading, “Notice of Final Payment” or the SDI payment history query shows an account balance other than zero, the SDI benefits have not been exhausted and may continue once the worker submits paperwork to EDD. In this situation, the field office (FO) will diary (code 42), as needed, to verify that no additional benefits were paid.

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  If the ending date is in the past, enter the ending date in Modernized Claims System (MCS) or ICF WC/PDB to remove offset.

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  Do not assume that SDI payments will last the entire 52 weeks.

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  If the evidence shows a Maximum Benefit Amount (MBA), divide the MBA by the Weekly Benefit Amount (WBA) and prorate from the start date as determined in DI 52135.030D.2. in this section to determine the ending date. Input of a known ending date via MCS or ICF WC/PDB will pass the future end date to the MBR for future automated offset removal.

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  Verify the actual ending date if the evidence indicates any breaks in payment or benefit reduction (see DI 52135.001E below). FOs may need to control individual cases.

For example, in situations where EDD issues a ‘Notice of Final Payment’ and we remove offset but SDI benefits have not been exhausted and could resume. See DI 52140.001H (FO) and DI 52140.010C (PC) for establishing diary controls.

Use ICF WC/PDB #32 to process the adjustment.

If offset is still in effect, SSA received no response to the automated letter requesting evidence of SDI termination, and there is no indication that SSA previously received the necessary evidence (e.g., a special message or unprocessed evidence in paperless Completed):

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  Make one follow-up contact with the beneficiary or with EDD, as appropriate, requesting proof of SDI termination.  If sending a DIRCON letter, model it after Exhibit 3 but show the PSC of jurisdiction’s return address.  Refer to DI 52135.030H. in this section for additional information regarding contacting the CA EDD offices.

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  Do not establish a diary control.  No further follow up is required.

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  Leave PDB offset in effect if there is no further response and there is no evidence already in the record to support removing offset.

Process as follows:

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  Annotate a special message to the MBR stating the source of the California PDB payments. 

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  Read the Action Control Record (ACR) files in (FIN).

SDI benefit withholding occurs for the number of days a worker is determined disqualified from receiving SDI benefits.

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  Periods of disqualification may result in breaks in SDI payment. However, breaks in payment do not mean breaks in entitlement (i.e., entitlement on the SDI claim continues during periods of disqualification).

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  Periods of disqualification do not affect the total amount of benefits (Maximum Benefit Amount or MBA) payable on the SDI claim. Therefore, breaks in payment may result in SDI benefits extending over a longer period.

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  Offset does not apply during periods of disqualification.

This chart shows the types of benefit reduction imposed against SDI payments by the state EDD (EDD refers to these as “offsets”). Additionally, the chart reflects whether SSA uses the gross or net SDI benefit for PDB offset.

EDD payment histories generally display reduction amounts on a separate line following the check amount or in a column next to the check amount and tag the line or column with the full title of the reduction type or an abbreviation (e.g., WORKERS COMP may be shown as WC).

We accept the following forms as verification of SDI payments:

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  Local EDD SDI abstract (DIS0306, PAYMENT HISTORY INQUIRY, or a DIS0312).

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  State Form DE 429D

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  Form DE2525A (Notice of Exhaustion of Disability Benefits)

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  Form DE 2500CKX (Notice of Exhaustion of Disability Benefits or Notice of Final Payment)

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  Claims and Payment History Abstract (ABS009.01) provided to SSA under an agreement with EDD.

NOTE: EDD will usually enclose a standard explanatory form DE 2599 with local abstract printouts such as the DIS0306. The DE 2599 explains the entries on the abstract.

See DI 52135.030I.2., Exhibit 2 for assistance in interpreting CA SDI documents.

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  DE 507 (Wage and Claim Abstract)

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  Disability Insurance Abstract

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  Claimant Abstract

This table shows the maximum weekly SDI rates and maximum duration:

View In PDF

The following chart explains the acronyms found on the typical SDI abstract.