Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 70 First Substitute (2022GS)

Sponsor

Rep. Gwynn, M.

Final action

Governor Signed 3/22/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires a participating employer to provide a benefit protection contract for a public safety service employee or a firefighter service employee if the employee is injured or becomes ill as the result of external force or violence while performing employment duties;
• authorizes a participating employer to provide a benefit protection contract for a public safety service employee or a firefighter service employee for other injuries or illness; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PUBLIC SAFETY DISABILITY BENEFITS AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Matthew H. Gwynn
Senate Sponsor: 
John D. Johnson
LONG TITLE
General Description:
This bill modifies disability coverage provisions of the Utah State Retirement and
Insurance Benefit Act.
Highlighted Provisions:
This bill:
▸ requires a participating employer to provide a benefit protection contract for a
public safety service employee or a firefighter service employee if the employee is
injured or becomes ill as the result of external force or violence while performing
employment duties;
▸ authorizes a participating employer to provide a benefit protection contract for a
public safety service employee or a firefighter service employee for other injuries or
illness; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
49-11-404
, as last amended by Laws of Utah 2011, Chapter 366
ENACTS:
49-14-602
, Utah Code Annotated 1953
49-15-602
, Utah Code Annotated 1953
49-23-602
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-11-404
 is amended to read:
49-11-404.
Benefit protection contract authorized -- Annual report required.
(1) (a) A participating employer may establish a salary protection program under which
[
its
] 
the participating employer's
 employees are paid during periods of disability.
(b) If a salary protection program is established, a participating employer may enter
into benefit protection contracts with the office.
(c) A salary protection program shall:
(i) pay benefits based on the rate of compensation of the member with a disability at
the time of disability;
(ii) pay benefits over the period of the disability;
(iii) not include settlement or lump sum payments of any type;
(iv) be 
based upon the member being awarded and receiving ongoing monthly
disability benefits that are:
(A)
 substantially equivalent to the long-term disability programs offered under Chapter
21, Public Employees' Long-Term Disability Act; [
and
] 
or
(B) workers' compensation indemnity benefits provided in accordance with Title 31A,
Insurance Code; and
(v) comply with requirements adopted by the board.
(2) A benefit protection contract shall allow:
(a) the member with a disability to be considered an active member in a system and
continue to accrue service credit and salary credit based on the member's rate of pay in effect at
the time disability commences;
(b) the office to require participating employer contributions to be paid before granting
service credit and salary credit to the member;
(c) the member with a disability to remain eligible during the contract period for any
benefits provided by the system that covers the member; and
(d) the benefit for the member with a disability to be improved by the annual
cost-of-living increase factor applied to retired members of the system that covered the member
on the date the member is eligible to receive benefits under a benefit protection contract.
(3) (a) The office shall establish the manner and times when employer contributions
are paid.
(b) A failure to make the required payments is cause for the office to cancel a contract.
(c) Service credit and salary credit granted and accrued up to the time of cancellation
may not be forfeited.
(4) For an employee covered under Chapter 22, New Public Employees' Tier II
Contributory Retirement Act, or Chapter 23, New Public Safety and Firefighter Tier II
Contributory Retirement Act, a benefit protection contract shall allow:
(a) for the defined benefit portion for a member covered under Chapter 22, Part 3, Tier
II Hybrid Retirement System, or Chapter 23, Part 3, Tier II Hybrid Retirement System:
(i) the member with a disability to be considered an active member in a system and
continue to accrue service credit and salary credit based on the member's rate of pay in effect at
the time disability commences;
(ii) the office to require participating employer contributions to be paid before granting
service credit and salary credit to the member;
(iii) the member with a disability to remain eligible during the contract period for any
benefits provided by the system that covers the member; and
(iv) the benefit for the member with a disability to be improved by the annual
cost-of-living increase factor applied to retired members of the system that covered the member
on the date the member is eligible to receive benefits under a benefit protection contract; and
(b) for the defined contribution portion for a member covered under Chapter 22, Part 3,
Tier II Hybrid Retirement System, or Chapter 23, Part 3, Tier II Hybrid Retirement System, or
for a participant covered under Chapter 22, Part 4, Tier II Defined Contribution Plan, or
Chapter 23, Part 4, Tier II Defined Contribution Plan, the office to require participating
employers to continue making the nonelective contributions on behalf of the member with a
disability or participant in the amounts specified in Subsection 
49-22-303
(1)(a), 
49-22-401
(1),
49-23-302
(1)(a), or 
49-23-401
(1).
(5) A participating employer that has entered into a benefit protection contract under
this section shall submit an annual report to the office
,
 which identifies:
(a) the employees receiving long-term disability benefits under policies initiated by the
participating employer and approved under the benefit protection contract;
(b) the employees that have applied for long-term disability benefits and who are
waiting approval; and
(c) the insurance carriers that are actively providing long-term disability benefits.
(6) If an employer fails to provide the annual report required under Subsection (5), the
benefits that would have accrued under the benefit protection contract shall be forfeited.
(7) The board may adopt rules to implement and administer this section.
Section 2. Section 
49-14-602
 is enacted to read:
 49-14-602.
Benefit protection contract.
(1) As used in this section:
(a) "Objective medical impairment" means the same as that term is defined in Section
49-21-102
.
(b) "Qualifying injury or illness" means a physical or mental objective medical
impairment resulting from external force or violence as a result of the performance of an
employment duty.
(2) (a) A participating employer shall provide a benefit protection contract described in
Section 
49-11-404
 for any public safety service employee who suffers a qualifying injury or
illness as determined in accordance with this section.
(b) A participating employer may elect to provide a benefit protection contract for any
other injury or illness of a public safety service employee in accordance with the requirements
for providing a benefit protection contract, including the provisions of Section 
49-11-404
.
(3) (a) For purposes of Subsection (2)(a), the provider of long-term disability or
workers' compensation indemnity benefits shall determine if a public safety service employee
has suffered a qualifying injury or illness, including completing any appeals relating to that
determination in accordance with the applicable appeals procedures.
(b) In addition to the annual report requirements under Section 
49-11-404
:
(i) if there is final determination that a public safety service employee has suffered a
qualifying injury or illness and is awarded an ongoing monthly disability benefit based on that
qualifying injury or illness, the participating employer shall immediately notify the office of the
employee's award of that ongoing monthly disability benefit; and
(ii) if the public safety service employee's monthly disability benefit is terminated for
any reason, the participating employer shall immediately notify the office of the termination of
the monthly disability benefit.
Section 3. Section 
49-15-602
 is enacted to read:
 49-15-602.
Benefit protection contract.
(1) As used in this section:
(a) "Objective medical impairment" means the same as that term is defined in Section
49-21-102
.
(b) "Qualifying injury or illness" means a physical or mental objective medical
impairment resulting from external force or violence as a result of the performance of an
employment duty.
(2) (a) A participating employer shall provide a benefit protection contract described in
Section 
49-11-404
 for any public safety service employee who suffers a qualifying injury or
illness as determined in accordance with this section.
(b) A participating employer may elect to provide a benefit protection contract for any
other injury or illness of a public safety service employee in accordance with the requirements
for providing a benefit protection contract, including the provisions of Section 
49-11-404
.
(3) (a) For purposes of Subsection (2)(a), the provider of long-term disability or
workers' compensation indemnity benefits shall determine if a public safety service employee
has suffered a qualifying injury or illness, including completing any appeals relating to that
determination in accordance with the applicable appeals procedures.
(b) In addition to the annual report requirements under Section 
49-11-404
:
(i) if there is final determination that a public safety service employee has suffered a
qualifying injury or illness and is awarded an ongoing monthly disability benefit based on that
qualifying injury or illness, the participating employer shall immediately notify the office of the
employee's award of that ongoing monthly disability benefit; and
(ii) if the public safety service employee's monthly disability benefit is terminated for
any reason, the participating employer shall immediately notify the office of the termination of
the monthly disability benefit.
Section 4. Section 
49-23-602
 is enacted to read:
 49-23-602.
Benefit protection contract.
(1) As used in this section:
(a) "Objective medical impairment" means the same as that term is defined in Section
49-21-102
.
(b) "Qualifying injury or illness" means a physical or mental objective medical
impairment resulting from external force or violence as a result of the performance of an
employment duty.
(2) (a) A participating employer shall provide a benefit protection contract described in
Section 
49-11-404
 for any public safety service employee or firefighter service employee who
suffers a qualifying injury or illness as determined in accordance with this section.
(b) A participating employer may elect to provide a benefit protection contract for any
other injury or illness of a public safety service employee or firefighter service employee in
accordance with the requirements for providing a benefit protection contract, including the
provisions of Section 
49-11-404
.
(3) (a) For purposes of Subsection (2)(a), the provider of long-term disability or
workers' compensation indemnity benefits shall determine if a public safety service employee
or firefighter service employee has suffered a qualifying injury or illness, including completing
any appeals relating to that determination in accordance with the applicable appeals
procedures.
(b) In addition to the annual report requirements under Section 
49-11-404
:
(i) if there is final determination that a public safety service employee or firefighter
service employee has suffered a qualifying injury or illness and is awarded an ongoing monthly
disability benefit based on that qualifying injury or illness, the participating employer shall
immediately notify the office of the employee's award of that ongoing monthly disability
benefit; and
(ii) if the public safety service employee's or firefighter service employee's monthly
disability benefit is terminated for any reason, the participating employer shall immediately
notify the office of the termination of the monthly disability benefit.
Section 5. 
Effective date.
This bill takes effect on July 1, 2022.