Nonindustrial Disability Insurance (NDI)
This program is an employer-paid short term disability program designed to provide a weekly benefit to eligible employee.
Full time, permanent or probationary employees, who are members of the Public Employees’ Retirement System (PERS) or State Teachers’ Retirement System (STRS) and who are in compensated employment, are eligible to apply for NDI benefits when disabled from work due to illness or physical injury which is not work related. Part time employees who are members of PERS or STRS may be eligible if they are appointed half time or more for one year of service or one academic year or more.
Benefits may vary according to the collective bargaining unit. Generally, the maximum weekly benefit is $125; however, the maximum weekly benefit for employees in Bargaining Units 1, 2, 4, 5, 6, 7, 9, Confidential (C99) and Management (M80) is $250.00.
How to Initiate a Nonindustrial Disability Leave
To begin a mediclal leave, please select: Initiate Medical Leave
Requirements for Leave
To participate, an employee must complete the following:
- A claim form (DE 8501) must be obtained from Human Resources and submitted to the Employment Development Department via the employee’s attending physician.
Procedures for Leave
The HR Leave Coordinator will discuss the information below with the employee.
- All sick leave must be exhausted prior to commencement of NDI benefits. Employees have the option to use accrued vacation. If using vacation, they must exhaust all accrued vacation before the NDI benefit will start.
- Human Resources provides the claim form with Part A - Employer Information completed by Payroll.
- The employee completes Part B - Claim Statement of Employee.
- The employee submits the claim to the attending physician.
- The attending physician completes Part C - Physician/Practitioner Certificate.
- Upon completion of the medical certificate the claim form needs to be submitted to the Employment Development Department (EDD) for determination of benefits.
Nonindustrial Disability Program Summary
The waiting period is seven (7) calendar days. The waiting period or any unserved portion may be waived if hospitalization is required.
Continuation of Employee Benefits
Generally Health/Dental/Vision insurance premiums are automatically deducted from the NDI benefits. If benefit plans are continued, the employer contribution and employee contribution, if any, will also continue.
Voluntary deductions such as parking, union dues, pre-tax plans, miscellaneous voluntary deductions are deducted, if there is sufficient gross pay. Employees may cancel voluntary deductions if desired.
The Internal Revenue Service has ruled that NDI benefits are taxable wages, and as a result, state and federal taxes and Social Security contributions will be withheld. Employees will not earn retirement service credit and retirement contributions will not be deducted from NDI benefits. NDI payments are not affected by other disability or wage loss insurance.
The Employment Development Department (EDD) determines the period of eligibility and authorizes claims and claim period(s). Once the Payroll Office receives authorization, they will request payment to the State Controller’s Office. Payment is then prepared on a monthly basis through the Payroll Office and distributed via direct deposit or by the individual department.
Employees may obtain a Request for Special Mailing of Warrants form from the Cashier’s Office, Joyal Administration Lobby, to have their pay warrant mailed to their home address.
Please note: The NDI claim form, approval by EDD and payment may take up to 4-6 weeks. Timely reporting of medical leaves and the process of the NDI claim forms by the employee and doctor is important.
Employees may appeal NDI determinations in writing and obtain a hearing before an administrative law judge by informing the NDI office or any EDD office.