COMPENSATION AND DISABILITY INSURANCE - NONINDUSTRIAL DISABILITY INSURANCE - 8538

Per the Human Resources Manual section 1411, the Employment Development Department (EDD) has administrative responsibility of the Nonindustrial Disability Insurance (NDI) Program for state employees. The EDD shall be reimbursed for its NDI related administrative costs by the agencies/departments employing individuals receiving NDI benefits.

The EDD has developed procedures for ongoing reimbursement of its administrative costs from agencies/departments, based on actual costs for the number of employees paid benefits in respective periods. The Fiscal Programs Division of the EDD will process billing invoices for NDI program administrative costs to participating agencies/departments through the State Controller’s Office (SCO) on a quarterly basis. The SCO will make the reimbursement payments by a transfer from the appropriate agency/department operating account to the Unemployment Compensation Disability Fund.

Per control section 3.50 of the annual Budget Act, NDI benefit costs and administrative costs are to be charged to the appropriation from which salaries and wages are paid by agencies/departments.