State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2000-004

  DATE:
  January 5, 2000

  TO:
  Health and Safety Officers
  Personnel Officers
  Return-to-Work/Claims Coordinators

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Supplementation of Vocational Rehabilitation Maintenance 
  Allowance (VRMA) with Leave Credits

  CONTACT:
  Keith Mentzer, Workers' Compensation Coordinator
  (916) 445-9792, CALNET 485-9792
  FAX: (916) 322-3769
  OFFICE VISION: DPA(KeithMentzer)
  INTERNET: KeithMentzer@dpa.ca.gov


  The purpose of this memo is to notify the departments about 
  changes made in the Government Code regarding the 
  supplementation of Vocational Rehabilitation Maintenance 
  Allowance with available leave credits.  
  
  State employees may now elect to supplement Vocational 
  Rehabilitation Maintenance Allowance (VRMA) benefits with 
  available leave credits.
  
  Senate Bill 401 (Chapter 457, Statutes of 1999), became 
  effective on September 21, 1999 making numerous changes to 
  the government code.  One of those changes was to amend 
  Government Code 19863.1(a) to read: 
  
  19863.1. (a) Notwithstanding any other provision of 
  the law to
  the contrary, a state officer or employee who is 
  entitled to temporary disability indemnity or 
  vocational rehabilitation maintenance allowance under 
  Division 4 (commencing with Section 3200) or Division 
  4.5 (commencing with Section 6100) of the Labor Code 
  as a result of an industrial accident or injury shall 
  earn sick leave and vacation leave or annual leave as 
  though the employee was working.  The state officer or 
  employee who is receiving temporary disability or 
  vocational rehabilitation maintenance allowance shall 
  be
  permitted to supplement the payments with any form of 
  leave
  credits.  Supplementation of leave credits combined 
  with vocational rehabilitation maintenance allowance 
  shall not exceed the employee's full pay less 
  mandatory withholdings.
  
  When an employee is injured on the job, they are entitled 
  to Workers' Compensation Benefits.  Employees who are 
  unable to return to their usual and customary duties as a 
  result of an industrial injury are entitled to Vocational 
  Rehabilitation (VR) benefits.  This program is intended to 
  aid the injured worker in finding alternate employment.  If 
  the injured worker elects to participate in a VR program, 
  they are entitled to receive a maintenance allowance during 
  the program.  If the injured worker is eligible for 
  Industrial Disability Leave (IDL) or another salary 
  continuation benefit, they will receive that benefit in 
  lieu of the VRMA.  Those employees, who are not eligible 
  for IDL or another salary continuation benefit, will 
  receive VRMA benefits.  These benefits are two-thirds of 
  the worker's previous salary up to a maximum of $246.00 a 
  week.  The payments are made by State Compensation 
  Insurance Fund and mailed directly to the employee on a 
  biweekly basis.  
  
  Previously, State employees were only permitted to 
  supplement Temporary Disability (TD) or Vocational 
  Rehabilitation Temporary Disability (VRTD) with their 
  available leave credits up to their previous net salary.  
  In 1994, VRTD was abolished and replaced by VRMA.  State 
  agencies did not have the legal authority to supplement 
  VRMA benefits with leave credits. 
  
  Previously, the employee was not allowed to supplement this 
  benefit with their available leave credits.  SB 401 changes 
  the Government Code to allow the employee to supplement 
  their VRMA with leave credits.  Their total income from 
  VRMA and the supplementation cannot exceed their pre-injury 
  gross pay.  The supplementation will allow the employee to 
  maintain their health care and other benefit coverage.  
  This change will affect any VRMA payments made after 
  September 21, 1999.  
  
  The State Controller's Office will process VRMA with 
  supplementation in the same manner as TD with 
  supplementation.  The agency should use the same procedure 
  to report VRMA with supplementation that it uses to report 
  TD with supplementation.
  
  If you have any questions about these changes, please 
  contact Keith Mentzer, Workers' Compensation Coordinator, 
  at (916) 445-9792.
  
  
  
  Kathie Vaughn, Chief
  Benefits Division