Volume 3 No. 1
VPA, INC. • THE INTEGRATED DISABILITY CLAIMS MANAGEMENT COMPANY
VPA Celebrates 20th
IN THIS ISSUE
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
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
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.
Wins Prestigious CREATIVE EXCELLENCE IN BENEFITS
AWARDED TO VPA CLIENT
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
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)
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 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-
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
New York Private DBL Plans
Self-Insurer’s Annual Report 1998 January 31, 1999 VPA
Hawaii Temporary Disability Insurance (TDI) Plans
Annual Report for TDI 1998 March 1, 1999 VPA / Client
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
Summary Annual Report 1998 Plan Year 2 Month’s After VPA or Client
Calendar or Fiscal Due Date of Form 5500
23622 Calabasas Road
Calabasas, CA 91302-1501
Lo 1 tes!
23622 Calabasas Road
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:
Chief Executive Officer
1999 Compensation and Jeff Bredehorn
Benefits Exposition John Gernert
BOSTON / May 2 - 4
Look for VPA at the 1999 ACA International Conference Regional Vice President
and Exposition, May 2-5, 1999. Held at the Hynes
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
make a special appointment with us during the confer- Client Services
ence, call Bob Trotta at (800) 473-9761, ext. 3040. Bob Trotta
New Business Development
Bob Ann Walkden