2018 Changes to California SDI and PFL Benefits

California AB 908 took effect January 1, 2018 and made major changes to the State Disability Insurance (SDI) and Paid Family Leave (PFL) wage replacement benefit programs.

1. Increase in the wage replacement rates for SDI and PFL from 55% to 60 or 70% depending on the applicant’s income:

  • 60% for individuals that earn one-third or more of the state’s average quarterly wage during the base period (prior four quarters)
  • 70% for individuals that earn less than one-third of the state’s average quarterly wage during the base period (prior four quarters)

2. Weekly maximum wage replacement benefit has increased from $1,173 in 2017 to $1,216 in 2018

3. Eliminates the 7-day waiting period for PFL claims

RBG recommends you perform a benefit review on your current Short Term Disability book of business (employer paid and voluntary) and consider off-anniversary options for groups that need to update their benefit.

Contact your RBG Representative today to discuss available STD benefit options and RFP submissions