Restore LTC Benefit to VDSP program

Item 472.1 #1c

Language
Page 518, line 25, strike "($90,324,589)" and insert "($87,203,333)".
Page 519, line 23, strike “.80” and insert “1.00”.
Page 519, line 34, strike "$41,940,871" and insert "$37,540,615".
Page 519, strike lines 56 through 58.
Page 520, strikes lines 1 through 16, and insert:
“D.1 Notwithstanding any provision to the contrary, any references to a period of 14 days or a period of 28 days in §§ 51.1-1111, -1112, -1122, and -1123 of the Virginia Sickness and Disability Program (VSDP) are hereby changed to a period of 45 days.  Moreover, the period of 45 days shall be consecutive days that the participating employee is (i) actively at work and (ii) fully released to return to work full time, full duty.   The Virginia Retirement System shall develop policies and procedures to administer the effects of the 45-day period in connection with participants who are deemed to have a major chronic condition.
2. Notwithstanding any provision to the contrary, any eligible employee commencing employment or re-employment on or after July 1, 2009, shall not be entitled to receive Virginia Sickness and Disability Program benefits under Article 3, Chapter 3 of Title 51.1 (Nonwork Related Disability Benefits) until the employee completes one continuous year of active employment or re-employment.
3. Notwithstanding any provision to the contrary, for all eligible employees commencing employment or re-employment on or after July 1, 2009, short-term disability coverage under the Virginia Sickness and Disability Program shall provide income replacement for no more than 60 percent of a participating employee’s creditable compensation for the first 60 months of continuous state service after employment or re-employment.
4.  The Director of the Department of Planning and Budget shall withhold and transfer general fund amounts of $1,279,000 the second year from the appropriations of state agencies and institutions of higher learning to this item, representing savings from reduced expenditures for short-term disability benefits pursuant to the policy changes authorized in this item."
Page 520, line 17, strike “5.” and insert “E.”.

Explanation
(This amendment restores funding for the Long-Term Care insurance program for state employees enrolled in the Virginia Sickness and Disability Program (VSDP), increases the recurrent period for repeat Short-Term Disability (STD) claims from 14 workdays to 45 workdays, institutes a one-year waiting period for new employees before receiving STD benefits for non-work related claims, and institutes a cap of 60 percent on the STD income replacement rate until a new employee services a five-year vesting period. These changes to the STD program are meant to bring the VSDP program in line with best practices prevalent in private sector disability plans.)