Short-term Disability Questions
All questions in this section are applicable for Utility Management, Administrative & Technical (A&T) and ESC-represented employees only.
Which employees are eligible for the STD policy?
You are eligible if you are Utility Management, Administrative & Technical (A&T), and ESC-represented employee with a date of disability of January 1, 2017 or later. For qualifying events beginning on or after January 1, 2018, for employees who work in California, you are eligible for PG&E’s STD Wage Continuation benefits/leave if you are covered under the Voluntary Disability and Paid Family Leave Benefit Plan (Voluntary Plan) and you have exhausted all available capped sick time.
If you are an eligible employee and you opt out of the VP:
- You will continue to follow the process for using your capped sick time and follow the leave of absence process with Sedgwick to request a company medical and/or leaves provided under the FMLA, CFRA, PDL or local leaves, if eligible.
- You will need to apply for CA SDI through the Employment Development Department (EDD). Payments for CA SDI benefits will be made directly by the EDD and via a debit card.
If you have the option and elect to not use and exhaust all available capped sick time during your leave, the remainder of the FAQ’s in this STD section will no longer apply to you. Please review the Sick Pay, FMLA/CFRA/PDL and Company Medical Leave FAQ’s above.
If you are an intern, hiring hall, temporary or intermittent employee who has not attained regular status, you are eligible for Voluntary Plan benefits and are not eligible for PG&E STD wage continuation benefits/leave or PG&E’s company leaves. The Voluntary Plan is a wage replacement benefit only and not a type of leave of absence. You may be eligible for a leave of absence under the FMLA, CFRA, or other similar state or local leave law. Please review the Voluntary Plan page and the Types of Leave Document for more information on what benefits and leave for which you may be eligible.
If you are an eligible employee and work outside of California, PG&E’s STD Wage Continuation supplements any state disability and paid family leave program for which you may be eligible.
How does PG&E’s short-term disability (STD) wage continuation interact with Voluntary Plan Disability Insurance (VPDI)?
As an eligible California Utility employee, you’re automatically covered under the Voluntary Plan (VP) beginning in 2018 unless you opt-out. The PG&E STD policy is comprised of two components: capped sick time and wage continuation benefits. Wage continuation benefits supplement VP benefits. If you opt-out of the VP, you will not receive the wage continuation benefits. Capped sick time will still apply and continued use for absences over seven consecutive calendar days will still follow the STD process and require medical certification.
VPDI pays 60% of your pre-disability weekly wage rate. STD wage continuation supplements this VPDI amount, so that together your benefits will add up to an after-tax equivalent of 70% of your pre-disability weekly basic wage rate.
How does PG&E’s STD policy work?
If you are certified as qualifying for STD benefits, you must use any available capped sick time until it is exhausted (provides 100% income replacement). Once capped sick time has exhausted, STD wage continuation provides supplemental income replacement, when added to the VPDI benefit, up to an after-tax equivalent of 70% of basic wage rate prior to disability. You may be eligible for up to 52 weeks of STD benefits/leave.
An application for benefits will need to be made through the leave and disability administrator, Sedgwick, for STD benefits, including capped sick time over 7 days.
For example if an employee is off for a total of 12 weeks and has 120 capped sick time hours:
Absence |
Capped Sick time |
Voluntary Plan Disability Insurance (VPDI) |
PG&E STD Wage Continuation |
3 weeks |
X |
|
|
9 weeks |
|
X |
X |
Can I elect to not use Capped Sick Time and still get STD benefits/leave?
No. Employees who have the choice and elect to not use all or a portion of their capped sick time at the onset of their leave are not eligible for wage continuation benefits or STD leave for the duration of their absence. Employee will be eligible for VPDI benefits and may be eligible for the Company Medical Leave for job protection after FMLA/CFRA/PDL ends.
How do you get to the “after-tax equivalent” or “net” STD WCB benefit?
The PG&E STD wage continuation benefit is taxed at the same rate as regular pay. In order for you to receive the after-tax equivalent to 70% of pre-disability pay, the wage continuation will be “grossed up”. You do not pay taxes on the VPDI benefit.
Important: VPDI and STD wage continuation are weekly benefits. Your monthly pay will be converted to a weekly amount in order to calculate these benefits (monthly pay x 12 / 52 = weekly base pay amount).
Example:
You have been certified and approved for VPDI and STD wage continuation benefits for 8 weeks. You use your remaining capped sick time to cover the first 2 weeks. Your base monthly pay is $8,333.00 per month (or $1,923.00 per week). In this example, your tax rate is 30% (Note: Your tax rate is specific to you and may differ from this example).
Capped Sick Time |
One Week |
Two Weeks |
$1,846.00/week |
$1,923.00 |
$3,846.00 |
30% tax |
- $576.90 |
- $1,153.80 |
Net Pay |
$1,346.10 |
$2,692.20 |
Under the PG&E STD policy, after capped sick time ends, you’re eligible for 70% after-tax (net) of your pre-disability weekly basic wage rate of $1,923.00, or $1,346.10 per week, in combination with VPDI and wage continuation benefits. Since you are eligible to receive $1,153.80 per week in VPDI benefits (60% of your weekly basic wage rate), your weekly wage continuation benefit amount will be calculated as follows:
70% of Basic Weekly Wage Rate |
VPDI per week |
STD Wage Continuation per week |
70% of $1,923.00 = $1,346.10 |
$1,153.80 |
$1,346.10 - $1,153.80 = $192.30 |
6 weeks of STD Wage Continuation benefits of $192.30 is $1,153.80 ($192.30 x 6 weeks = $1,153.80).
With your tax rate of 30%, you pay this 30% on your six weeks of STD wage continuation benefit, which is approximately $494.50 in taxes. The $1,153.80 will be grossed up to $1,648.30 so that after taxes, you will receive the estimated $1,153.80, less any applicable deductions (e.g., benefit premiums, union dues, etc.).
STD wage continuation payments |
6 weeks of wage continuation grossed-up |
Gross $1,648.30 |
30% tax = |
- $494.50 |
$192.30 x 6 weeks |
After-Tax/Net $1,153.80 |
Below represents your total of 8 weeks of STD benefits through the receipt of capped sick time, VPDI and STD Wage Continuation benefits.
STD Estimated Benefits |
Capped Stick Time (2 weeks) |
$2,692.20 |
VPDI payments (60% no tax weekly benefit (6 weeks)
$6,922.80
STD Wage Continuation (70% after tax weekly benefit (6 weeks))
+ $1,153.80 |
|
|
$8,076.60 |
Total estimated after-tax STD benefits for 8 weeks (Capped Sick, VPDI and Wage Continuation benefits) |
$10,768.80 |
When and how will STD benefits be paid?
Capped sick time, VPDI and STD wage continuation benefit payments will be made on your regularly scheduled payroll cycle. The pay cycle in which payments are made in dependent upon the date on which your claim decision is made. You will receive two separate checks/direct deposit from PG&E: VPDI benefits and STD Wage Continuation (supplemental) benefits.
For example: If you are a monthly-paid employee and your claim decision is made on the 25th of the month, your benefits will be paid according to your normal pay cycle the following the month.
Where do I find my STD and VPDI payments when I file taxes?
VPDI benefit payments are not reported anywhere as they are not subject to federal or state taxes.
STD wage continuation benefit payments are fully taxable and reported in your W-2 in Boxes 1, 3, 5, and 16, incorporating amounts into the totals for each box.
Should you have any questions regarding your W-2, please contact payroll. If you have any questions about filing your taxes, please contact your tax professional.
Can I receive vacation or other paid time, while also receiving STD benefits?
No.
I was hurt at work, can I still file for STD?
You can file a claim for STD benefits; however, you cannot be paid workers’ compensation, VPDI and wage continuation benefits for the same period of time except in limited situations. For example, you may be paid interim STD benefits if you’ve filed a claim for workers’ compensation and these payments are denied or delayed.
If you do receive VPDI benefits while your workers’ compensation case is pending, a lien will be filed to recover those benefits when you resolve your workers’ compensation case. In some cases, this could still result in an overpayment of VPDI benefits. If you received capped sick time or wage continuation during this time, you will be required to repay any overpayment resulting from these payments.
What happens to my job if I am off work under the STD policy?
If you are on an approved absence, you have job protection for up to one year from your first day missed due to disability and if you are eligible to receive capped sick time or wage continuation benefits. When you are able to return to work, you are generally able to return to your former or equivalent classification and headquarters.
If you have opted to remain covered under the State Plan or have the option and request to not use and exhaust your capped sick time, please see the types of leaves document for additional information on leaves for which you may qualify.
Note: If a position is eliminated, you have no greater right to reinstatement or to other benefits and conditions of employment than if you had been continuously employed (working) during any leave or disability period.
What happens to my other PG&E benefits if I am off work and receiving STD benefits?
- During your STD leave period, health and welfare benefits for yourself and your covered dependents, if applicable, will continue as if you were still at work (with the exception of the Dependent Care FSA). Your health and welfare premium contributions will remain the same as when you were working.
- These premiums will be deducted, without any action on your part (i.e., deductions will be automatic), while you are receiving capped sick time or PG&E’s STD wage continuation (supplemental) benefits payments.
- When you’re on leave, the premiums that you pay for your health and welfare benefits will not be automatically deducted from your Voluntary Plan (VP) wage replacement pay. Please see the Voluntary Plan page for more information about electing to continue to have health and welfare premium deductions “redirected” from the VP wage replacement benefits.
- You are eligible for full vacation, incidental sick time and holiday time accrual for the first 480 cumulative hours (12 weeks) of your STD leave period, which begins your first day of absence, including when using capped sick time (or incidental sick time, if used during the benefit waiting period), per calendar year. (See the vacation and sick time section on mypgebenefits.com for details and limitations).
- While approved to receive capped sick time (and incidental sick time, if used during the benefit waiting period) and STD wage continuation benefit payments, 401(k) contributions and company match will continue at your current designation unless you elect otherwise pursuant to normal 401(k) election procedures.
- If you are eligible for the Short-Term Incentive Plan (STIP), you will receive STIP credits during the first six months of your STD leave period per calendar year.
Questions on health and welfare benefits should be directed to the PG&E Benefits Service Center at 1-866-271-8144.
IBEW and SEIU-Represented Employees covered under the Voluntary Plan Disability Insurance (VPDI):
If you are a Utility employee working in California, you are eligible for coverage under the Voluntary Disability and Paid Family Leave Benefit Plan (Voluntary Plan or VP).
VPDI is a wage replacement benefit only and is not a type of leave of absence. You may be eligible for a leave of absence under the Family and Medical Leave Act (FMLA)/ California Family Rights Act (CFRA), Pregnancy Disability Leave (PDL) other similar state or local leave law or PG&E’s company medical leave.
How do VPDI benefits work for IBEW and SEIU-Represented employees?
Once you are suffering a wage loss, Voluntary Plan Disability Insurance (VPDI) provides income replacement up to a non-taxable amount of 60% of your basic wage rate prior to disability.
If you are a hiring hall, outage, temporary additional, summer hire, intern or probationary-intermittent employee, VPDI provides income replacement up to a non-taxable amount of 55% of your basic wage rate prior to disability. See the Voluntary Plan page for more information on how benefits are calculated and length in which you may be eligible for benefits.
An application for benefits will need to be made through Sedgwick, using the same process that exists today—one call is needed for Voluntary Plan and any other leave for which you may be eligible and qualified. Meaning, if you will be out for a planned absence, you need to call Sedgwick 30 days in advance of your leave start date. If you will be out for an unforeseeable event, you need to call as soon as the need for leave is known. This includes calling for absences covered under federal and state leave provisions (i.e. if you will be absent for four or more days for your own condition, a leave of absence should be initiated with Sedgwick).
When and how will VPDI benefits be paid?
Sick pay and VPDI benefit payments will be made according to your normal pay cycle and the method of payment you’ve elected through PG&E’s payroll department (i.e. direct deposit or live check). VPDI benefit payments will be issued on a separate paycheck from any other pay type and issued according to your current pay designation (direct deposit or live paycheck).
Where do I find my VPDI payments when I file taxes?
VPDI benefit payments are not reported on your W-2 or via a separate 1099 form as they are not subject to federal or state taxes.
Should you have any questions regarding your W-2, please contact payroll. If you have any questions about filing your taxes, please contact your tax professional.
Can I receive vacation or other paid time while also receiving VPDI benefits?
No.
I was hurt at work, can I still file for VPDI?
You can file a claim for VPDI benefits. However, you cannot be paid workers’ compensation and VPDI for the same period of time except in limited situations. For example, you may be paid interim VPDI benefits if you’ve filed a claim for workers’ compensation and these payments are denied or delayed.
If you do receive VPDI benefits while your workers’ compensation case is pending, a lien will be filed to recover those benefits when you resolve your workers’ compensation case. In some cases, this could still result in an overpayment of VPDI benefits. You will be required to repay any overpayment resulting from these payments.
What happens to my job if I am on an approved leave and receiving benefits under the VPDI policy?
If you are receiving Voluntary Plan benefits, you have job protection if you are also on an approved leave of absence under the Family and Medical Leave Act (FMLA), California Family Rights Act (CFRA), California Pregnancy Disability Leave CA PFL), other federal/state leave laws, or Company leave policy. The length of your job protection will be dependent on what leave law or policy for which you are eligible.
Please see the leaves of absence section for additional information on leaves for which you may qualify.
What happens to my other PG&E benefits if I am on an approved leave and receiving VPDI benefits?
During your medical leave period, health and welfare benefits for yourself and your covered dependents, if applicable, will continue as if you were still at work (with the exception of the Dependent Care FSA). You are not eligible to participate in the Dependent Care FSA (DCFSA) while you are not actively at work. Your health and welfare premium contributions will remain the same as when you were working.
You are eligible for full vacation accrual for the first 240 cumulative hours (6 weeks) of your medical leave period, which begins on your first unpaid day of absence, (after you have exhausted all available sick time), per calendar year.