sr-072782-6lPE:SEM:g Santa Monica, California
Council Meeting: July 2/, 1982
JUL 2 7
pg82
T0: Mayor and C ity Council
FROM: City Staff
Subject: Resolution for Intent to Elect Coverage Under State
Disability Plan for Individual Employees of the City
Attorney's Offi ce
Introduc tion
This report requests adoption of a Resolution electing coverage
under Section 71 H.5 of the Unemployment Insurance Code. Such
coverage would provide disability income insurance to Individual
Employees of the City Attorney's Office.
This implements Section 37 of the current MOU between the City and
the Attorney's support staff.
Background
Pursuant to the MOU, the City is required to offer a disability
income plan. In researching cost effective coverage, Personnel
staff contacted the State Disability Insurance division (SDI) of
the Employment Development Department. Coverage is now available
to individual units of employees within an employer's agency by
election of coverage under U.I. Code Section 71 p. 5, which
identifies the employer as a covered public agency for the
particular unit.
SDI would cover employees from the seventh (7th) day of disability
or illness, or from the first day if hospitalized. Payments to
claimant employee would be made directly in an amount scheduled
according to salary with a maximum of $175 per week. Benefit
a
JUL 2 7 1982
duration is 39 weeks. This amount is reduced by any Worker°s
Compensation benefits. Further, the plan allows integration with
sick leave so that employees may continue effective take-home pay
by supplementation.
SDI requires that a 6-7 month base period of earnings be
established. Immediate adoption of this Resolution and application
will make the benefits available by February 1983. Payments would
then be calculated on the base period earnings to the maximum
allowable.
Cost
SDI requires a withholding -tax of .8% (.008) of the employee's
salary. This is to be forwarded quarterly to the State. Since the
agreement indicates that a plan "provided by the City" will be
offered, this cost is assumable by the City. The rate may be
adjusted annually by the State Legislature on or about October 31.
At current salary rates, the maximum first year cost would be
$2075.80
Recommendation
It is recommended that Council adopt the attached Resolution
electing SDI coverage for the Attorney's support staff.
Prepared by: Susan E. McCarthy