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Voluntary Disability Insurance

The Pepperdine VDI plan is a lower-cost and effective replacement for California State Disability Insurance. California employees currently pay SDI tax on all earnings, and these funds go toward a state pool to provide residents with income during periods of short-term disability (such as illness, injury, or pregnancy) or family leave (such as when bonding with a new baby or caring for a sick family member). Pepperdine VDI replaces California SDI, allowing the University to create its own pool and provide income to its California employees directly, leading to the following:

  • Cost savings. The SDI tax rate has increased 33% over the past three years, and it is expected to continue increasing at a substantial rate, without a corresponding increase in benefits for most employees.
  • Same benefits. By law, Pepperdine VDI cannot offer lower benefits than California SDI (such as lower income payments), so you can expect the same great benefits now and in the future.
  • Faster, More Personalized Service. To access income, SDI requires you to go through California’s Employment Development Department, which can be challenging due to extremely high call volumes. VDI allows Pepperdine to manage the claims process directly through a dedicated team familiar with our community, improving service to faculty and staff when it matters most.

Annual Savings

Enter your annual gross salary and see your estimated annual savings with Pepperdine VDI in 2026 .

Enter numbers only; decimals allowed. Example: 85000 or 85000.50
Your Current 2025 CA SDI Deduction (1.2%, no maximum)
Your Projected 2026 CA SDI Deduction (1.3%, no maximum)
Your Projected 2026 Pepperdine VDI Deduction (0.95%, up to a maximum of $1,727)
Your Estimated Annual Savings

*Please note, if you itemize your federal tax return, you may experience an increase in the taxes you pay with VDI, which could reduce your overall annual savings (however, VDI savings will always be greater). Please see the VDI FAQs for additional details.

Get Your Questions Answered

To learn more about Pepperdine VDI and how it will impact you,