VPA Celebrates 20th Anniversary by wulinqing


									                                                                                             Volume 3 No. 1
                                                                                                Winter 1999


                   VPA Celebrates 20th


                                his year, VPA celebrates its   for their internally administered self-
WHO DO YOU CALL                 20th anniversary and two       insured California Voluntary Plans.
WITH QUESTIONS?                 decades of providing               Within six months, VPA secured
PAGE 2                          answers to America’s dis-      two more clients that began to change
                   ability benefits administration chal-       the face of the company; Taco Bell
BALDRIDGE AWARD    lenges.                                     and Union Bank-still clients today
PAGE 3                 It was twenty years ago this July       who would eventually ask VPA to
                   that Jack Bredehorn, VPA President,         administer and integrate a range of
                   founded Voluntary Plan Administrators,      disability benefits.
                   Inc. (known today as VPA, Inc.) in              During those early years, VPA con-
                   Tarzana, California. “I had been work-      centrated on building its business with
                   ing at a similar firm in the industry as    organizations that self-insured
1999 STATE         Director of Marketing and when that         California State Disability Insurance
DISABILITY         company shifted its emphasis to             (SDI) Plans. Within ten years the
SUMMARY            Workers’ Compensation administra-           company was administering more than
PAGE 3             tion, I decided to strike out on my         50% of such plans. As business grew,
                   own.”                                       VPA outgrew its Tarzana location and,
CPDM DESIGNATION       That decision, and the hiring of        in 1985, moved to the company’s cur-
                   VPA’s first employee, Thelma Wilson,        rent headquarters in Calabasas.
                   who is still Jack’s Executive Assistant,        During that first ten-year period,
CORNER             set VPA on its way to becoming the          VPA invested in technology that put it
                   nation’s largest privately held disabili-   a step ahead of the competition. It
                   ty administrator.                           was the first administrator to provide
IMPORTANT FILING       “We started off with the idea of        employees and physicians 800-number
DATES              showing companies in California how         phone-in service for short-term dis-
PAGE 5             to self insure their mandatory              ability claims processing and the first
                   California State Disability Insurance       to provide an interactive voice
                   Benefits,” says Jack.                       response system (IVR). The IVR
                       The company’s first clients,            allows claimants to call in 24 hours a
                   Sambo’s Restaurants and Loma Linda          day, seven days a week for claims sta-
                   University, hired VPA as consultants
                                                                                  Continued on page 4
          P R E S II D E N T ’’ S
          P R E S    D E N T S               M E S S A G E
                                             M E S S A G E                    WHO
                                                                            DO YOU CALL?
                                                                            Who do you call with questions?

V          PA’s 20th year in busi-     steps in returning to work.          Plan design, claim forms, ID
           ness is a milestone. As         Throughout our history, we       cards, plan implementation,
           the leader in integrated    have continually invested in         procedure manuals, and
disability management, we cele-        state-of-the-art technology. This    customer service:
brate this accomplishment with         allows us the flexibility to         Julie Santen, VP, Client Services
great excitement. In a time of         respond to any need and create       e-mail: jsanten@VPAinc.com
continuing merger and divestiture      the electronic connections our       (818)222-3143
activity, VPA remains indepen-         customers depend on.
dent and strong.                           Entering 1999, we welcome
                                                                            Management reports, state
     Our focus since 1979 has been     the addition of several new
                                                                            reporting requirements, auditing,
on one business–benefit adminis-       clients, including Silicon
                                                                            client relations:
tration of absence and disability      Graphics, Inc. and Belden Inc.
                                       We have also expanded our ser-       John Koval, VP, Quality
management programs. Our long-
term relationships with our cus-       vices with Tricon Global             Assurance & Reporting
tomers and partners demonstrate        Restaurants, for whom we pro-        e-mail: jkoval@VPAinc.com
our ability to stay at the forefront   vide statutory and short-term dis-   (818)222-3103
of disability management. In           ability management, to include
fact, over 40% of our clients have     long-term disability administra-     Enrollment, applications, check-
been with us for 10 years or more.     tion. We welcome each new            ing accounts, bonding:
     We are proud of our growth        client to the VPA family and look    Thelma Wilson, Director, Plan
and position in the marketplace.       forward to building long and suc-    Services
VPA has risen from a small             cessful relationships.               e-mail: twilson@VPAinc.com
employee benefits company self-            VPA’s Mission states, “We        (818)222-3105
insuring California statutory SDI      will provide superior value to our
plans to a national disability         customers.” Over the past 20         Fee reconciliation, contracts, ser-
management administrator.              years, this has been possible by     vice agreements:
Today, we are the largest, inde-       anticipating our customers’
                                                                            Robert Schulte, Director,
pendently owned disability ben-        expectations and exceeding their
                                                                            Contract Administration
efit administrator in the United       needs for integrated disability
                                       management programs. Just like       e-mail: rschulte@VPAinc.com
                                       people, we realize every company     (818)222-3104
     Our staff is devoted to solving
the needs of our customers. We         is different. 20 years has taught
help employers and their employ-       us how to listen to our customers
ees by reducing the administrative     and how to build benefit solu-
burden and by initiating proactive     tions that really work.
         VPA Client
       Wins Prestigious                                                                    CREATIVE EXCELLENCE IN BENEFITS
                                                                                               AWARDED TO VPA CLIENT
       Baldridge Award
                                                                                                 oo often, good benefit programs do not get the attention

       olar Turbines, a Caterpillar Company and                                                  they deserve. For this very reason, The International
       manufacturer of gas turbine engines, has                                                  Foundation of Employee Benefit Plans (IFEBP) annually
       been named a winner of the Malcolm                                                recognizes organizations that have implemented innovative
Baldridge National Quality Award.                                                        employee benefits programs by presenting them with their
    The Malcolm Baldridge National Quality                                               Creative Excellence in Benefits Award.
Award recognizes U.S. companies for their                                                    We are pleased to announce that PepsiCo has received hon-
achievements in quality and business excellence.                                         orable mention from IFEBP for their Integrated Health and
The criteria and process to qualify as a candidate                                       Disability Program.
is extremely complex, including extensive                                                    PepsiCo’s Integrated Program coordinates case management
reviews by the National Institute of Standards                                           efforts of their disability, medical, and mental health/substance
and Technology (NIST) and in-depth site visits                                           abuse programs. This collaboration quickly identifies resources
from Baldridge examiners.                                                                for employees who need them the most.
    On February 4, 1999, President Clinton and                                                In the role of general contractor and disability administrator
the Department of Commerce presented the                                                 of PepsiCo’s Integrated Program, VPA coordinates all claims
award to Solar Turbines. They are the only                                               activities and employee information into a centralized data
company in San Diego to have ever won the                                                source. This system platform acts as a reservoir of claimant
Malcolm Baldridge National Quality Award.                                                information. All group health and disability vendors electroni-
    VPA congratulates our client for their out-                                          cally access the data source and share clinical and non-clinical
standing achievement in quality and excellence.                                          activities.
In 1989, VPA implemented Solar Turbines’                                                     PepsiCo’s Integrated Program was recognized at the
statutory disability program and is currently                                            Corporate Benefits Conference in October and appeared in the
implementing an ERISA STD program.                                                       December edition of Employee Benefits Digest.

                                       1999 STATE DISABILITY SUMMARY
    STATE             WHAT IS THE CONTRIBUTION RATE?                           WHAT ARE THE WEEKLY BENEFITS?                                WHEN DO                       MAXIMUM
                                                                                                                                         BENEFITS BEGIN?                   PERIOD?

                      Employee: 0.5% of first $31,767 of annual         55% of average weekly earnings in highest quarter of Base     On eighth (8th) consecutive      Fifty-two (52)
CALIFORNIA            gross earnings ($158.84 yearly maximum).          Period. (Minimum: $ 50.00 / Maximum: $336.00)                 day of disability.               weeks.
                      Employer: Optional, may elect to pay all or       Benefits payable for less than one week will be paid in
                      part of employee amount.                          increments of 1/7th of the weekly benefit.
                      Employee: Up to one-half (1/2) of plan costs,     58% of average weekly earnings; (Minimum: $ 14.00 /           On eighth (8th) consecutive      Twenty-six (26)
  HAWAII              but not more than 0.5% of average weekly          Maximum: $365.00) Benefits payable for less than one          day of disability.               weeks.
                      earnings or $3.14 per week, whichever is less.    week will be paid in increments of 1/5th of the weekly
                      (Taxable Wage Base = $628.05/wk).                 benefit.
                      Employer: At least one-half (1/2) of plan
                      costs, plus any additional costs not chargeable
                      to employee.
                      Employee: 0.5% of first $20,200 of annual         66-2/3% of average weekly wage: (Maximum $381.00)             On eighth (8th) consecutive      Twenty-six (26)
NEW JERSEY            earnings ($101.00/year). Employer: 0.1% to        Benefits payable for less than one week will be paid in       day of disability (on first      weeks.
                      1.1% of the first $20,200 of annual earnings      increments of 1/7th of the weekly benefit.                    (1st) day if disability lasts
                      of each employee, depending on experience                                                                       longer than twenty-one (21)
                      rating.                                                                                                         days).
                      Employee: one half of 1% (0.5%) of the first      50% of average weekly wage: (Minimum: $ 20.00 /               On eighth (8th) consecutive      Twenty-six (26)
 NEW YORK             $120 of weekly wage up to a maximum of            Maximum: $170.00) Benefits payable for less than one          day of disability.               weeks.
                      $0.60 per week. Employer: Balance of plan         week will be paid in increments of the weekly benefit
                      costs not covered by employee.                    divided by the number of the EE’s normal work days per
                      0.6% of first $9,000 of annual earnings. The      65% of weekly earnings: (Minimum: $ 12.00 / Maximum:          On eighth (8th) consecutive      Twenty-six (26)
PUERTO RICO           contribution may be shared (i.e., 0.2%            $113.00)                                                      day of disability (or first      weeks
                      Employee + 0.4% Employer, or 0.3%                 ($55 maximum for agricultural workers). Benefits              day of hospitalization, if
                      Employee + 0.3% Employer).                        payable for less than one week will be paid in increments     earlier).
                                                                        of 1/7th of the weekly benefit.
                      Employee: 1.2% of first $38,000 of annual         4.62% of total high Base Period quarter wages.                On eighth (8th) consecutive      Thirty (30) weeks in
  RHODE               earnings.                                         (Minimum: $ 48.00/wk / Maximum: $463.00/wk)                   day of disability (on first      any Benefit Year.
  ISLAND              (Note: 1.2% contribution rate was effective       **NOTE: EE’s are eligible for an additional benefit of the    (1st) day, if disability lasts
                      since 1997)                                       greater of 7% of their weekly rate or $10.00 for each child   longer than twenty-eight
                                                                        under age 18 - called “Dependent Award”                       (28) days)

   If you would like a copy of the complete schedule that VPA has available, please contact Thelma Wilson, Director, Plan Services, at 818-222-3105.
Continued from page 1.
                                                         in health care costs and improvement in the quality
                                                         and accessibility of health care. This same program
                                                         received honorable mention from the International
                                                         Foundation of Employee Benefit Plans for The
tus. VPA was also the first to provide a full payroll    Creative Excellence in Benefits Award in 1998.
service for tax deductions based on an employee’s             Several new programs are in the works to offer
W4 status and elective deduction withholdings.           additional services to clients. VPA will begin to
     In addition to its technological capabilities,      provide Family Medical Leave Act (FMLA) admin-
VPA expanded its product line to include self-           istrative services shortly. “We are also in the
insured ERISA short-term and long-term disability        process of developing a ‘total absence manage-
plans. For example, Union Bank became the first          ment’ program for clients that will include daily
client to fully integrate SDI, short-term disability     absence tracking and reporting systems,” says Bob
and long-term disability benefits administration         Trotta, Vice President, New Business Development.
in 1982.                                                 “This will be important for tracking absences for
     “Another pivotal year was 1990, when we             FMLA and other purposes.” Being able to analyze
acquired Hewlett-Packard (H-P) as a client,” says        total absence will give insight into the reasons
Jack. “For the first time, H-P fully integrated dis-     employees miss work and will help companies
ability benefits for their operations throughout the     develop solutions for controlling absence.
United States-all of the self-insured state disability        Over the next few years, VPA anticipates rapid
insurance benefits in California, Hawaii, New York       growth from new clients and expanded services for
and New Jersey as well as the self-insured short-        existing clients. Today, VPA has more than 160
term disability and long-term disability benefits for    employees. In the year 2000, it plans to expand its
all states.” This was a major step in growing VPA        Calabasas headquarters to accommodate the
from a regional administrator of self-insured            increased growth. As business continues to expand,
California SDI benefits programs to a national           the company will also consider satellite offices in
company administering benefit programs in all            other parts of the country when appropriate.
50 states.                                                    VPA will also continue to live up to its reputa-
     Today, VPA clients are headquartered in all         tion as a high-tech company within the disability
areas of the country. To keep up with the need for       administration industry. The company purchased
VPA’s services throughout the United States, the         all new software and computer systems within the
company opened a marketing office in New York            past year to ensure Y2K compliance and to move
in 1997.                                                 from a mainframe environment to a client server
     Over the past three years, VPA has focused          environment. This conversion will not only allow
on developing and expanding their expertise in           VPA to export its claims system easily to any satel-
administering integrated disability benefits pro-        lite offices that may be established in the future,
grams. This has included adding Workers’                 but the system can be expanded indefinitely as
Compensation disability benefits to the mix              VPA’s business grows.
through partnerships with Workers’ Compensation               The phone system is also in the process of
administrators and insurers.                             being updated which will introduce CTI (computer
     VPA has also successfully integrated medical        telephony interface), enhancing customer service
disability case management as illustrated by its         response capabilities. The upgraded system will
partnerships with both PepsiCo and Tricon Global         also dramatically enhance the interactive voice
Restaurants. VPA works directly with medical and         response system (IVR) and voicemail options
mental health disability case management vendors         already available.
to provide seamless case management. This pro-                “Over 40% of our 112 clients have been with us
gram won the 1999 Astra Pharmaceuticals/National         for over 10 years,” says Jack. “We’re determined
Managed Health Care Congress Partnership Award.          to continue providing services and customer sup-
The award recognizes successful managed care             port that will keep them with us for the next ten
partnerships that have led to significant reductions     years, and well beyond.”
                                                                                                                       NEW CLIENT
                                                                                                             New Clients Welcomed

                                                                                                             Since the last edition of Disability
                                                                                                             News, VPA is pleased to welcome
                                                                                                             these new accounts to our offices:

                                                                                                             Belden, Inc. – VPA has been selected
    V PA s e e k s C P D M d e s i g n a t i o n                                                             as the disability administrator of
                                                                                                             Belden’s short-term and long-term dis-
                                                                                                             ability program.

         PA has begun courses for                   environment. From a business
         CPDM designation begin-                    stand point, CPDM designation
                                                                                                             Silicon Graphics, Inc. – VPA has been
         ning February 1999.                        is a great move for us. It is
                                                                                                             selected as the new disability adminis-
         Jointly sponsored by IEA                   going to help our employees and
                                                                                                             trator of Silicon Graphics’ statutory
and DMEC, the Certified                             our clients, “ reports Bob Ann
                                                                                                             disability and short-term disability
Professional in Disability                          Walkden, Vice President of
Management (CPDM) program is                        VPA’s Claim Operations.
highly regarded in the group                            The first of 3 college-level
                                                                                                             Tricon Global Restaurants, Inc. – The
health, workers’ compensation,                      courses is being hosted at VPA’s
                                                                                                             new contract encompasses Tricon’s
managed care, and disability                        Calabasas claims office. Individuals
                                                                                                             self-insured long-term disability pro-
industries.                                         completing the CPDM course
                                                                                                             gram. VPA will continue to adminis-
    “The CPDM program will give                     will be required to complete 6
                                                                                                             ter their statutory disability and short-
our employees an increased aware-                   hours of continuing education on
                                                                                                             term disability programs.
ness of issues encompassing the                     the topics of disability manage-
ever-evolving integrated benefits                   ment each year.

                                                 IMPORTANT FILING DATES
 As we enter into a new year, VPA would like to remind our clients of some important dates related to the financial reporting of your self-insured disability
 programs. If you have any questions, please contact the VPA Quality Assurance and Reporting Department at (800) 473-9761, extension 3120.
 STATE DISABILITY PLANS                                                   Period Reported                  Due Date                        Prepared By
 California Voluntary Disability Plans
 Report of Self-Insured Voluntary Plan Transactions                       Each Calendar Qtr                90 Days After End of Qtr        VPA
 (Form# DE2568V)
 New York Private DBL Plans
 Self-Insurer’s Annual Report                                             1998                             January 31, 1999                VPA
 (Form# DB-681)
 Hawaii Temporary Disability Insurance (TDI) Plans
 Annual Report for TDI                                                    1998                             March 1, 1999                   VPA / Client
 (Form# TDI-21)
 New Jersey Private Plans
 • Quarterly Report of Temporary Disability Benefits                      Each Calendar Qtr                45 Days After End of Qtr        VPA
 • Annual Report of Private Plan Self-Insured Employer                    1998                             March 15, 1999                  VPA
 ERISA SELF-INSURED STD / LTD PLANS                                       Period Reported                  Due Date                        Prepared By
 Annual Return/Report of Employee Benefit Plan                            1998 Plan Year                   7 Month’s After                 VPA or Client
 (Form 5500)                                                              Calendar or Fiscal               End of Plan Year
 Return of Organization Exempt From Income Tax                            1998 Plan Year                   15th Day of the Fifth           Client
 (Form 990)                                                               Calendar or Fiscal               Month After End of
                                                                                                           Annual Acctng Period
 Application For Extension of Time To File                                1998 Plan Year                   7 Month’s After                 Client
 Certain Employee Plan Returns                                            Calendar or Fiscal               End of Plan Year
 (Form 5558)
 Summary Annual Report                                                    1998 Plan Year                   2 Month’s After                 VPA or Client
                                                                          Calendar or Fiscal               Due Date of Form 5500
            VPA, Inc.
            23622 Calabasas Road
             Second Floor
             Calabasas, CA 91302-1501

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                                                                                VPA, Inc.
                                                                             The Integrated
                                                                             Disability Claims
                                                                             Corporate Office:
                                                                           23622 Calabasas Road
                                                                                Second Floor
                                                                            Calabasas, CA 91302
                                                                            Tel. (800) 473-9761
                                                                            Fax. (818) 591-7664
                                                                        New York Sales Office:
                                                                        70 West Red Oak Lane
                                                                      White Plains, NY 10604-3602
                                                                          Tel. (914) 697-7555
                                                                          Fax. (914) 697-4888
                                                                   E-Mail: n e w s l e t t e r @ V PA i n c . c o m
                                                                     Web Site: w w w . V PA i n c . c o m
                                                                           Officers of the Company:
                                                                               Jack Bredehorn
                                                                                  President and
                                                                             Chief Executive Officer

         1999 Compensation and                                                   Jeff Bredehorn
                                                                                 Vice President
                                                                              Information Systems

           Benefits Exposition                                                    John Gernert
                                                                                  Vice President
                        BOSTON / May 2 - 4
                                                                                    Tom Klett
       Look for VPA at the 1999 ACA International Conference                Regional Vice President
       and Exposition, May 2-5, 1999. Held at the Hynes
                                                                                   John Koval
       Convention Center in Boston, this year’s conference                      Vice President
       promises new perspectives on compensation and benefit            Quality Assurance & Reporting

       issues. Be sure to stop at VPA’s exhibit in space 610. To                  Julie Santen
                                                                                  Vice President
       make a special appointment with us during the confer-                      Client Services
       ence, call Bob Trotta at (800) 473-9761, ext. 3040.                         Bob Trotta
                                                                               Vice President
                                                                          New Business Development
                                                                              Bob Ann Walkden
                                                                                 Vice President
                                                                                Claim Operations

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