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Volume 3 No. 1 Winter 1999 DISABILITY news VPA, INC. • THE INTEGRATED DISABILITY CLAIMS MANAGEMENT COMPANY VPA Celebrates 20th IN THIS ISSUE VPA CELEBRATES 20TH ANNIVERSARY PAGE 1 PRESIDENT’S MESSAGE PAGE 2 Anniversary T 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 CREATIVE founded Voluntary Plan Administrators, disability benefits. EXCELLENCE IN Inc. (known today as VPA, Inc.) in During those early years, VPA con- BENEFITS AWARD Tarzana, California. “I had been work- centrated on building its business with PAGE 3 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- PAGE 5 VPA’s first employee, Thelma Wilson, rent headquarters in Calabasas. who is still Jack’s Executive Assistant, During that first ten-year period, NEW CLIENT CORNER set VPA on its way to becoming the VPA invested in technology that put it PAGE 5 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 States. 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 T oo often, good benefit programs do not get the attention S 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 week. 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. Anniversary 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 Corner 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. V 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 programs. 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 de insi ok 999 Lo 1 tes! for pda y Up bilit Disa VPA, Inc. The Integrated Disability Claims Management Company 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 Finance BOSTON / May 2 - 4 Tom Klett Look for VPA at the 1999 ACA International Conference Regional Vice President Marketing 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
"VPA Celebrates 20th Anniversary"