Frequently Asked Questions

These questions and answers summarize some of the plan’s highlights. For a complete description of your benefits please refer to the appropriate Plan Summary document in the Resource Library. If there are any differences between this information and the plan documents, the plan documents will govern.

What is Voluntary Disability Insurance?

The Stanford University Voluntary Disability Insurance (VDI) plan is a non-work-related short-term disability plan that is designed to replace a portion of your income if you are unable to work for up to a maximum of 52 weeks of total disability.

Who is eligible for the Voluntary Disability Plan?

All employees, including temporary, part-time and salaried postdoctoral candidates, are eligible for coverage under this plan starting on date of employment. Stanford University students are not eligible for this plan.

When do disability payments start?

Payment for all disabilities will begin after a 7-day waiting period. Exception: The waiting period is waived on the first day of hospital confinement.

When and how should I file a VDI claim?

You should file your claim immediately after your doctor certifies your date of disability or within 60 days from the start of the disability. Claims may be accepted later if you have good cause for the delay.

To report your claim, call Liberty Mutual Insurance Company toll-free at (800) 896-9375 or logon to their Web site at www.mylibertyconnection.com (claimant service ID: stanford).

What does the Voluntary Disability Plan pay and how often do I get paid?

In calendar year 2015 the VDI Plan pays a maximum of $1,104 per week or 60% of your weekly salary, whichever is less. You will be paid weekly by Liberty Mutual Insurance Company for a maximum of 52 weeks. If you have accrued hours available for salary continuation you will receive those dollars on the 7^th and 22^nd of each month in the form of a reduced Stanford paycheck. See the next question for an explanation of salary continuation.

If you opt out of the VDI Plan in writing and chose the State plan (California SDI), your weekly maximum is $1,104 per week and will be paid by California’s Employment Development Department. (Weekly means each 7-day period of disability.) See www.edd.ca.gov/Disability/DI_Benefit_Amounts.htm

Important: You may not collect VDI and SDI for the same claim unless you have two employers. In that case, the claim will be shared by both employers but your maximum benefit will still be $1,104 per week.

For more information, we recommend you review the VDI Statement of CoverageVDI Statement of Coverage
Brief summary of short-term disability plan available for California employees at Stanford.
.

What is salary continuation?

Salary continuation is when a staff member wishes to supplement his/her VDI pay with accrued sick, PTO, floating holiday or vacation hours to bring their pay up to 100% of their full pre-disability salary.

When you decide to use accrued time in the form of salary continuation you will receive more than one check. Your VDI benefits will come from Liberty Mutual Insurance Company and your salary continuation dollars will come to you in the form of a reduced Stanford paycheck. SCRP retirement contributions will only be based on the salary continuation dollars, not the VDI benefits from Liberty Mutual.

How can Faculty, Senior Staff and other teaching positions supplement their salary while on disability leave?

Please contact your Faculty Affairs Officer or Human Resource Manager for your school to answer your question.

Are my VDI benefits taxable?

No. Voluntary Disability Insurance benefits are not subject to either Federal or State tax.

May I continue my benefits while on VDI leave?

Yes. You may continue all the same benefits while on VDI except the Dependent Day Care flexible spending account. Dependent Day Care flexible spending accounts must be suspended when you are on a VDI leave, but is reactivated when you return from your leave in the same calendar year.

See the Plan Summary and FAQ on Flexible Spending Accounts in the Medical & Life section, or look in the Resource Library.

What happens if I run out of leave accruals while on VDI?

When you run out of leave accruals – sick time, PTO, floating holiday or vacation – you will be put on leave without salary. When this happens, you will:

• Be sent a coupon book so you can pay for your benefits directly to our administrator, Vita Administration Company, on the 7^th and 22^nd of each month.
• Continue to receive university contributions for your benefits. Remember: Since you are not being paid through Stanford, you will pay your portion of your benefit costs through Vita using after-tax dollars. No contributions to retirement savings can be made during this time.

How do I pay for benefits while on VDI disability leave?

If you are on a paid leave your contributions will continue to be taken out of your reduced Stanford paycheck on a before-tax basis. If you are on an unpaid leave you will be sent a coupon book by our direct pay administrator, Vita Administration Company. You will send the coupons with your payments twice a month to Vita and you will pay for your benefits with after-tax dollars.

Do I have to pay for the VDI benefit?

Yes. In calendar year 2015 you will pay a total of .9% of the first $104,378 of your calendar year earnings as your VDI premium, to a maximum of $939.40 ($104,378 x .009 = $939.40). If you earn more than $104,378 then you will stop paying your premium once you reach the annual maximum. These amounts are subject to change each January 1. This premium is deducted from your paycheck.

How long can I remain on VDI?

You can receive a VDI benefit as long as your doctor certifies your disability. The maximum benefit period is 52 weeks of total disability. For more information we recommend you review the VDI Statement of Coverage in the Resource Library.

If I come back to work after being on VDI and go out again for the same problem must I file a new claim?

If the diagnosis is the same and you have been back at work for less than 14 days you do not need to file a new claim. But if you have been back to work more than 14 days you need to file a new claim.

Am I eligible for the VDI plan if I am a Seasonal Layoff?

If your disability begins within 15 days of your seasonal layoff date then you are eligible for the Stanford VDI Plan.

After 15 days you must apply for state disability directly from your local Employment Development Department office. The benefit amount may be different from the Stanford plan. For more information, go to www.edd.ca.gov/direp/diind.htm.

Does the time on VDI count toward retiree health care eligibility?

Only your first 90 days of VDI count toward your retiree health care eligibility.

Can I reject the VDI Plan and join the state plan?

You can reject coverage in Stanford’s VDI plan and enroll in California State Disability Insurance (SDI) by completing the VDI Rejection Form and submitting it to your Payroll Department (Campus at MC 8440). You can return to the VDI plan as long as you complete the  SDI Rejection Form. If you choose to opt out of VDI, you are legally required to participate in SDI. For more information on SDI, visit California’s Employment Development Department Web site. Both rejection forms are available in the Resource Library.

If you have questions about your VDI benefits, call Stanford Benefits at (650) 736-2985 or toll-free at (877) 905-2985 and press option 9.

As a new employee am I eligible for VDI benefits?

Yes, but your benefit may be subject to a preexisting condition clause and limited to the state rate. This is a California requirement and not a Stanford rule. Please refer to the VDI Statement of Coverage found in the Resource Library.