University of California Office of the President

Workers' Compensation Payroll Procedures

Option 2 and 3 - Written Permission from the Employee to use all of Employee's Sick Leave (or Sick Leave and Vacation) Accrued as of the Date of Injury

A University of California employee who is receiving td payments from Sedgwick CMS, may elect to be eligible for University supplemental benefits and Extended Sick Leave (ESL) benefits by authorizing the use of all accrued sick leave (Option 2) or accrued sick leave and vacation (Option 3). Please note that an employee who has filed a claim for workers' compensation benefits CANNOT BE PAID, except by usage of whatever accrued sick leave the employee had on the date of injury, until you have received further notification from the UCOP Benefits Office that your employee is receiving workers' compensation td payments. In the event the employee selects either Option 2 or Option 3, the procedure is as follows:

Permission to use the employee's sick leave (Option 2) or sick leave and vacation (Option 3) is obtained from the employee in writing. In the event an employee fails to return the Workers' Compensation Leave Option Election Form (see Election Form ) within ten (10) calendar days of the day it was sent to the employee, the department should charge the employee's time as if the employee had elected Option 2. Do not pay the employee's University supplement until you have received written notification from the UCOP Benefits Office via the Workers' Compensation Transaction Profile that td payments to the employee have begun.
Supplementing at 100% - Supplemental Sick Leave

The employee will remain on pay status at 100% of the normal appointment as long as the employee has enough accrued sick leave (Option 2) or sick leave and vacation (Option 3).
The employee will receive td payments directly from Sedgwick CMS.
The td payment made directly to the employee by Sedgwick CMS is a reduction against the 100% salary described above. The employee will also receive from the University a supplemental payment equal to the difference betwen the td payment and 100% of the regular earnings, excluding overtime.

CALCULATION OF WEEKLY td PAYMENT (Sedgwick CMS):
Rate of Pay	$12.00/hour
Appointment	40 working hours per week
td payment	2/3 X ($12 X 40) = $320.00
CALCULATION OF WEEKLY UC SUPPLEMENT:
40 hrs. X $12.00	$480.00
Less td Payment from Sedgwick CMS	- 320.00
UC Supplement	$160.00
EMPLOYEE RECEIVES PER WEEK OF DISABILITY:
td Payment from Sedgwick CMS	$320.00
Plus UC Supplement	+ 160.00
	$480.00

The sick leave and vacation to support the $160.00 payment in the above example was charged on a prorata basis. That is, the sick leave and vacation was not charged day for day as it normally would be, but was adjusted by the Sedgwick CMS td payment. The following illustrates how the sick leave and vacation charges are adjusted:

Total hours off			40 hrs.
Less:	Hours of td	$320.00 Sedgwick CMS Benefit	- 27 hrs.
	paid by Sedgwick CMS	$12.00 Hourly Wage
Hours charged to sick and vacation leave			13 hrs.
If the employee has elected Option 2, the 13 hours is charged against Sick Leave only .
If the employee has elected Option 3, the 13 hours is charged against Sick Leave first , then any remainder is charged against Vacation.

The rate at which the employee is charged depends on the employee's hourly rate. The higher the hourly rate, the higher the usage of the sick and vacation leave.
The UCOP Benefits Office notifies the department each time an employee has received a td payment by sending a Workers' Compensation Transaction Profile.

Supplementing at 80% - Extended Sick Leave

When the Employee's sick leave (Option 2) or sick leave and vacation (Option 3) have been exhausted, the employee is entitled to remain on regular pay status at 80% for a period not to exceed 26 weeks.
The employee will continue to receive td payments directly from Sedgwick CMS.
The employee will also receive from the department a University supplement payment equal to the difference between the td payment and 80% of the employee's regular earnings.

EXAMPLE: Assuming that the employee has elected either Option 2 or Option 3 and sick leave, or sick leave and vacation leave, has been exhausted:

Rate of Pay	$12.00/hour
Appointment	40 working hours per week
td payment	2/3 X ($12 X 40) = $320.00
CALCULATION OF WEEKLY UC SUPPLEMENT:
(40.00 @ 80%) X $12 = 32.00 X $12.00	$384.00
Less td Payment from Sedgwick CMS	- 320.00
UC Supplement	$ 64.00 (*)
EMPLOYEE RECEIVES PER WEEK OF DISABILITY:
td Payment	$320.00
Supplement (UC)	+ 64.00
	$384.00 per week

(*) There is no vacation and/or sick leave to support the $64.00 supplement

Effects on Benefits

At 100% - Supplemental Sick Leave

The employee is considered on regular pay status for all benefits.
The sick leave accruals earned while on 100% status must be used before the employee is eligible for the 80% status.
For those employees electing Option 3, the department should charge time off to sick leave prior to using the employee's accrued vacation.

At 80% - Extended Sick Leave

The employee is considered to be on regular (100%) pay status for the purpose of all benefits.
Sick leave and vacation accrued during this time is credited to the employee only upon return to work.
If the employee terminates without returning to work, only the accrued vacation earned while on 80% status will be paid.
The sick leave and vacation accrued while on 80% status will be accrued at the 100% rate.
When the 26 week limit is reached and the University stops paying the supplement, the department should place the employee on a leave of absence without pay.
After the 26 week period has ended, the UCOP Benefits Office will arrange for the continuation of the employee's MEDICAL insurance coverage through the HEALTH CONTINGENCY FUND by sending a written request to the Systemwide Benefits Accounting Office.
After the 26 week period has ended, other insurance under the University Group Plans may be continued by making arrangements with the UCOP Benefits Office.