State Disability Insurance for State Employees FAQs

We oversee and run the SDI program. The State Controller’s Office handles SDI payroll withholdings, and the California Department of Human Resources manages contract administration.

Yes. To cover the DI non-payable waiting period, you can use accrued:

• Vacation
• Annual leave
• Compensatory time off
• Holiday credit
• Personal leave
• Sick leave

You can also use up to 40 hours of your accrued leave credits each month while receiving DI or PFL benefits.

To see if you are eligible for PFL, you can visit the Am I Eligible for Paid Family Leave Benefits?

Yes, if you are in a covered bargaining unit and are otherwise eligible. It depends on your bargaining unit and not on the state in which you live.

SDI covers employees in bargaining units 1, 3, 4, 10, 11, 14, 15, 17, 20, and 21.

You can find more information about eligibility, benefit amounts, and how to file a claim on the DI and PFL pages.

If you are on non-work-related disability or family leave and are receiving SDI benefits, your employer will pay their part of the health benefits premium for up to 26 weeks. The State Controller’s Office will bill you for your part of the health benefits premium when you return to work.

If you coordinate benefits, you can have your part of the health benefits premium paid during your leave instead of paying later.

To continue health benefits if you are still out after 26 weeks you must:

• Be under the Family and Medical Leave Act at the same time as SDI.
• Pay both the employer and employee share of the premium to the provider.

No, they do not receive SDI. They may be eligible for the Nonindustrial Disability Insurance program, with either regular or enhanced benefit levels.

Disability Insurance (DI):

DI benefits are usually not reportable for tax purposes, unless you switch from Unemployment Insurance (UI) to DI. This happens if you become unable to work due to a disability while receiving UI. In that case, the DI payments are treated as a substitute for UI and are reportable for taxes.

If you switch, we will send you a notice explaining the benefits will be reported to the Internal Revenue Service (IRS). In January, we will send you and the IRS a copy of the 1099G form.

Paid Family Leave (PFL):

PFL benefits are reportable for federal tax purposes but not for state tax. We will provide you with a 1099G form and forward a copy of the 1099G to the IRS.

No, SDI deductions are not pre-taxed (deducted from you paycheck before paying federal, state, and social security taxes).

Yes. Your FlexElect cash option will resume automatically once you return from leave.

If you are receiving SDI benefits, you will not accrue annual leave credits unless you work partial hours.

No. Lump sum payments for pay (e.g., vacation, annual leave, compensatory time off) that were earned but not paid for services performed prior to termination of employment will not be considered wages or compensation for personal services. There should be no SDI deductions withheld from lump sum payments. This includes lump sum payments for vacation cash out or 401(k) plans.

No. You cannot choose your disability program. It is determined by your employment position and bargaining unit.

SDI covers employees in bargaining units 1, 3, 4, 10, 11, 14, 15, 17, 20, and 21.

Nonindustrial Disability Insurance covers excluded employees and rank-and-file employees in bargaining units 2, 5, 6, 7, 8, 9, 12, 13, 16, 18, and 19.

The SDI deductions stop. The funds are not returned to you. You may be eligible for both Nonindustrial Disability Insurance and SDI if you have wages in your base period.

Contact CalPERS to discuss your service credit purchase options. Call toll-free at 1-888-CalPERS (or 1-888-225-7377) Monday through Friday, 8:00 a.m. to 5:00 p.m. For TTY, use 1-877-249-7442.