The California Employment Development Department (EDD) has announced its May forecast for the 2015 Disability Insurance (DI) Fund, the fund from which both State Disability Insurance (SDI) and Paid Family Leave benefits are paid. The 2015 employee contribution rate is expected to decrease to 0.9% from its current 1.0%; the maximum weekly benefit amount is expected to rise to $1,111 from its current $1,075; and the taxable wage base from which DI contributions can be made is expected to rise to $105,040 from its current $101,636.
California employers may opt out of DI if a private plan, Voluntary Disability Insurance (VDI), is established, provided certain requirements are met. Two of the primary requirements are that the employee cost of VDI be no more than the employee cost of DI and that benefits paid by VDI be at least equal to what DI would pay.
Once the DI changes for 2015 have been finalized, The Larkin Company will reach out to clients for whom we administer VDI to assist them in planning for 2015.