California EDD Updates 2017 DI Fund Forecast

California State Disability Insurance Fund Forecast for 2017

The California Employment Development Department (EDD) has announced its May forecast for the 2017 Disability Insurance (DI) Fund.  The DI fund provides State Disability Insurance and Paid Family Leave benefits for California employees.   The 2017 employee contribution rate is expected to remain at 0.9%; the maximum weekly benefit is expected to increase from $1,129 to $1,156; and the taxable wage base from which DI contributions can be made is expected to increase from $106,742 to $109,295.

California employers may opt out of the state DI if a private plan, Voluntary Disability Insurance (VDI), is established and certain requirements are met.  Two of these requirements are that the employee cost of VDI cannot be more than what the employee pays for DI and the benefits paid by VDI must be at least equal to what DI would pay.  For more information about VDI, please contact The Larkin Company.

The Larkin Company will reach out to clients for whom we administer VDI to assist them in planning for 2017.