Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 22 (2025GS)

Sponsor

Sen. Harper, Wayne A.

Final action

Governor Signed 3/19/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• modifies the definition of gainful employment for purposes of the Public Employees' Long-Term Disability Act;
• includes pay for time that exceeds an eligible employee's regular schedule in the calculation of the eligible employee's regular monthly salary;
• establishes a death benefit for employees receiving long-term disability benefits;
• makes life assistance counseling that the Utah State Retirement Office offers available to employees receiving long-term disability benefits;
• increases the state-paid basic life insurance benefit for exempt state employees;
• creates additional state-paid basic life insurance benefit tiers for exempt state employees; and
• directs savings from a reduction in long-term disability premium rates be used to pay for the cost of the changes in this bill.

Every vote on this bill

Bill text

8
49-11-609
49-21-102
49-21-401
49-11-609
49-21-102
49-21-401
0
State Employee Benefit Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Cheryl K. Acton
LONG TITLE
General Description:
This bill modifies provisions related to public employee benefits.
Highlighted Provisions:
This bill:
modifies the definition of gainful employment for purposes of the Public Employees' 
Long-Term Disability Act;
includes pay for time that exceeds an eligible employee's regular schedule in the 
calculation of the eligible employee's regular monthly salary;
establishes a death benefit for employees receiving long-term disability benefits;
makes life assistance counseling that the Utah State Retirement Office offers available to 
employees receiving long-term disability benefits;
increases the state-paid basic life insurance benefit for state employees;
creates additional state-paid basic life insurance benefit tiers for exempt state employees; 
and
directs savings from a reduction in long-term disability premium rates be used to pay for 
the cost of the changes in this bill.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
49-11-609
, as last amended by Laws of Utah 2020, Chapter 24
49-21-102
, as last amended by Laws of Utah 2023, Chapter 274
49-21-401
, as last amended by Laws of Utah 2023, Chapter 274
Uncodified Material Affected:
ENACTS UNCODIFIED MATERIAL
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
49-11-609
 is amended to read:
49-11-609
. Beneficiary designations -- Revocation of beneficiary designation -- 
Procedure -- Beneficiary not designated -- Payment to survivors in order established 
under the Uniform Probate Code -- Restrictions on payment -- Payment of deceased's 
expenses.
(1)
As used in this section, "member" includes a member, retiree, participant, covered 
individual, 
eligible employee as defined in Section 
49-21-102
, 
a spouse of a retiree 
participating in the insurance benefits created by Sections 
49-12-404
, 
49-13-404
, 
49-22-307
, and 
49-23-306
, or an alternate payee under a domestic relations order 
dividing a defined contribution account.
(2)
(a)
Except as provided under Subsection 
(2)(b)
 or 
(c)
, the most recent beneficiary 
designations signed by the member and filed with the office, including electronic 
records, at the time of the member's death are binding in the payment of any benefits 
due under this title.
(b)
(i)
The divorce or annulment of a member's marriage shall revoke the member's 
former spouse as a beneficiary from any of the member's beneficiary designations.
(ii)
A revocation of a former spouse as a beneficiary in accordance with Subsection 
(2)(b)(i)
 does not revoke any other beneficiaries named on the member's 
beneficiary designations.
(c)
A former spouse whose beneficiary designation is revoked solely under Subsection 
(2)(b)
 shall be revived on the member's beneficiary designations by:
(i)
the member's remarriage to the former spouse; or
(ii)
a nullification of the divorce or annulment.
(d)
A revocation under Subsection 
(2)(b)
 does not apply to a former spouse named as a 
beneficiary in a beneficiary designation signed by the member and filed with the 
office after the date of the divorce or annulment.
(e)
The office is not liable for having made a payment of any benefits to a beneficiary 
designated in a beneficiary designation affected by a divorce, annulment, or 
remarriage before the office received written notice of the divorce, annulment, or 
remarriage.
(3)
(a)
Except where an optional continuing benefit is chosen, or the law makes a specific 
benefit designation to a dependent spouse, a member may revoke a beneficiary 
designation at any time and may execute and file a different beneficiary designation 
with the office.
(b)
A beneficiary designation or change of beneficiary designation shall be completed on 
forms provided by the office.
(4)
(a)
All benefits payable by the office may be paid or applied to the benefit of the 
decedent's heirs in the order of precedence established under 
Title 75, Chapter 2, 
Intestate Succession and Wills
, if:
(i)
no beneficiary is designated or if all designated beneficiaries have predeceased the 
member;
(ii)
the location of the beneficiary or secondary beneficiaries cannot be ascertained by 
the office within 12 months of the date a reasonable attempt is made by the office 
to locate the beneficiaries; or
(iii)
the beneficiary has not completed the forms necessary to pay the benefits within 
six months of the date that beneficiary forms are sent to the beneficiary's 
last-known address.
(b)
(i)
A payment may not be made to a person included in any of the groups referred 
to in Subsection 
(4)(a)
 if at the date of payment there is a living person in any of 
the groups preceding it.
(ii)
Payment to a person in any group may be based upon receipt of an affidavit in a 
form satisfactory to the office that:
(A)
there are no living individuals in the group preceding it;
(B)
the probate of the estate of the deceased has not been commenced; and
(C)
more than 30 days have elapsed since the date of death of the decedent.
(5)
Benefits paid under this section shall be:
(a)
a full satisfaction and discharge of all claims for benefits under this title; and
(b)
payable by reason of the death of the decedent.
Section 2, Section 
49-21-102
 is amended to read:
49-21-102
. Definitions.
As used in this chapter:
(1)
"Date of disability" means the date on which a period of total disability begins, and may 
not begin on or before the last day of performing full-duty work in the eligible 
employee's regular occupation.
(2)
(a)
"Eligible employee" means any of the following employees whose employer 
provides coverage under this chapter:
(i)
(A)
any regular full-time employee as defined under Section 
49-12-102
, 
49-13-102
, or 
49-22-102
;
(B)
any public safety service employee as defined under Section 
49-14-102
, 
49-15-102
, or 
49-23-102
;
(C)
any firefighter service employee or volunteer firefighter as defined under 
Section 
49-23-102
 who began firefighter service on or after July 1, 2011;
(D)
any judge as defined under Section 
49-17-102
 or 
49-18-102
; or
(E)
the governor of the state;
(ii)
an employee who is exempt from participating in a retirement system under 
Subsection 
49-12-203(4)
, 
49-13-203(4)
, 
49-14-203(1)
, or 
49-15-203(1)
; and
(iii)
an employee who is covered by a retirement program offered by a public or 
private system, organization, or company designated by the Utah Board of Higher 
Education.
(b)
"Eligible employee" does not include:
(i)
any employee that is exempt from coverage under Section 
49-21-201
; or
(ii)
a retiree.
(3)
"Elimination period" means the three months at the beginning of each continuous period 
of total disability for which no benefit will be paid. The elimination period begins on 
the nearest first day of the month from the date of disability. The elimination period 
may include a one-time trial return to work period of less than 15 consecutive calendar 
days.
(4)
(a)
"Gainful employment" means any occupation or employment position in the state 
that:
(i)
contemplates continued employment during a fiscal or calendar year; and
(ii)
would pay an amount equal to or greater than 40 hours per week at 
the legally 
required minimum wage
60% of the eligible employee's regular monthly salary
, 
regardless of the number of hours worked.
(b)
"Gainful employment" does not mean that an occupation or employment position in 
the state is:
(i)
available within any geographic boundaries of the state;
(ii)
offered at a certain level of wages;
(iii)
available at a particular number of hours per week; or
(iv)
currently available.
(5)
"Maximum benefit period" means the maximum period of time the monthly disability 
income benefit will be paid under Section 
49-21-403
 for any continuous period of total 
disability.
(6)
"Monthly compensation" means:
(a)
the amount an eligible employee's participating employer certifies under Section 
49-11-603
; plus
(b)
if not included in the amount described in Subsection 
(6)(a)
, the eligible employee's 
monthly compensation for the average number of hours the eligible employee 
demonstrates the eligible employee worked per week during the preceding 12-month 
period that exceeded the eligible employee's regular weekly schedule, up to 10 hours 
per week, calculated at the eligible employee's base rate of pay.
(6)
(7)
"Monthly disability benefit" means the monthly payments and accrual of service 
credit under Section 
49-21-401
.
(7)
(8)
"Objective medical impairment" means an impairment resulting from an injury or 
illness that is diagnosed by a physician and that is based on accepted objective medical 
tests or findings rather than subjective complaints.
(8)
(9)
"Ongoing disability" means, after the elimination period and the first 24 months of 
disability benefits, the complete inability due to objective medical impairment, as 
determined under Subsection 
49-21-401(9)
, to engage in any gainful employment which 
is reasonable, considering the eligible employee's education, training, and experience.
(9)
(10)
"Own occupation disability" means the complete inability, due to objective 
medical impairment, whether physical or mental, to engage in the eligible employee's 
regular occupation during the elimination period and the first 24 months of disability 
benefits.
(10)
(11)
"Physician" means a licensed physician.
(11)
(12)
"Pilot period" means the period beginning on July 1, 2023, and ending on June 
30, 2026.
(12)
(13)
"Regular monthly salary" means the amount certified by the participating 
employer as the
 eligible employee's
 monthly 
salary of the eligible employee
compensation
, unless there is a discrepancy between the certified amount and the 
amount actually paid, in which case the office shall determine the regular monthly salary.
(13)
(14)
"Regular occupation" means either:
(a)
the primary duties performed by the eligible employee for the 12 months preceding 
the date of disability; or
(b)
a permanent assignment of duty to the eligible employee, as long as the eligible 
employee has actually performed all the required duties of the permanent assignment 
of duty.
(14)
(15)
"Rehabilitative employment" means any occupation or employment for wage or 
profit, for which the eligible employee is reasonably qualified to perform based on 
education, training, or experience.
(15)
(16)
"Total disability" means:
(a)
own occupation disability; or
(b)
ongoing disability.
(16)
(17)
(a)
"Workers' compensation indemnity benefits" means benefits provided that 
are designed to replace wages under 
Title 34A, Chapter 2, Part 4, Compensation and 
Benefits
, including wage replacement for a temporary disability, temporary partial 
disability, permanent partial disability, or permanent total disability.
(b)
"Workers' compensation indemnity benefits" includes a settlement amount following 
a claim for indemnity benefits.
Section 3, Section 
49-21-401
 is amended to read:
49-21-401
. Disability benefits -- Application -- Eligibility.
(1)
An eligible employee shall apply for long-term disability benefits under this chapter by:
(a)
completing an application form prepared by the office;
(b)
signing a consent form allowing the office access to the eligible employee's medical 
records; and
(c)
providing any documentation or information reasonably requested by the office.
(2)
(a)
If an eligible employee is unable to apply on the employee's own behalf, the 
application may be made by a person who is:
(i)
the attorney for an eligible employee; or
(ii)
appointed as a conservator or guardian of the eligible employee.
(b)
A person described in Subsection 
(2)(a)
, may not make an application for a deceased 
employee.
(3)
Upon request by the office, the participating employer of the eligible employee shall 
provide to the office documentation and information concerning the eligible employee.
(4)
The office:
(a)
shall review all relevant information;
(b)
may request additional information; and
(c)
shall determine whether or not the eligible employee has a total disability.
(5)
(a)
If the office determines that the eligible employee has a total disability due to 
accidental bodily injury or illness that is not the result of the performance of an 
employment duty, the eligible employee shall receive a monthly disability benefit 
equal to:
(i)
two-thirds of the eligible employee's regular monthly salary, for each month the 
total disability continues beyond the elimination period, not to exceed the 
maximum benefit period; minus
(ii)
any required reductions or reimbursements under Section 
49-21-402
.
(b)
For an eligible employee under an own occupation disability, the office shall, at the 
end of the two-year disability period or when a claim for total disability is made by 
an eligible employee:
(i)
review and determine whether the eligible employee qualifies for ongoing 
disability benefits;
(ii)
make the determination under Subsection 
(5)(b)(i)
 as of the day after the eligible 
employee's own occupation disability benefits end;
(iii)
consider only objective medical impairment that the office determines as a 
disabling condition on the date of disability; and
(iv)
exclude any new intervening causes or new diagnoses during the own occupation 
disability period.
(6)
(a)
An eligible employee shall receive a monthly disability benefit equal to 100% of 
the eligible employee's regular monthly salary for each month the total disability 
continues beyond the elimination period, not to exceed the maximum benefit period, 
but reduced by any required reductions and reimbursements under Section 
49-21-402
, 
if the office determines that the employee meets all of the following:
(i)
the eligible employee has a total disability:
(A)
during the pilot period, due to a physical objective medical impairment or a 
mental objective medical impairment; or
(B)
except as provided in Subsection 
(6)(b)
, after the pilot period, due to a 
physical objective medical impairment;
(ii)
the objective medical impairment described in Subsection 
(6)(a)(i)
 resulted from 
physical, external force or violence to the body of the eligible employee in the 
performance of an employment duty; and
(iii)
the eligible employee received workers' compensation indemnity benefits for the 
objective medical impairment described in Subsection 
(6)(a)(i)
.
(b)
If an eligible employee qualifies for a total disability during the pilot period, the 
office shall determine whether the employee has a total disability after the pilot 
period due to a physical objective medical impairment or a mental objective medical 
impairment.
(c)
An eligible employee who receives workers' compensation indemnity benefits for an 
objective medical impairment is not guaranteed to receive the 100% monthly 
disability benefit described in Subsection 
(6)(a)
.
(7)
(a)
Successive periods of disability are considered as a continuous period of disability 
if the period of disability:
(i)
results from the same or related causes;
(ii)
is separated by less than six months of continuous full-time work at the 
individual's usual place of employment; and
(iii)
commences while the individual is an eligible employee covered by this chapter.
(b)
The inability to work for a period of less than 15 consecutive calendar days is not 
considered as a period of disability.
(c)
If Subsection 
(7)(a)
 or 
(b)
 does not apply, successive periods of disability are 
considered as separate periods of disability.
(8)
The office may, at any time, have any eligible employee claiming to have a disability 
examined by a physician chosen by the office to determine if the eligible employee has a 
total disability.
(9)
(a)
For purposes of determining whether an eligible employee has an ongoing 
disability, inability is determined:
(i)
during the pilot period, due to physical objective medical impairment or mental 
objective medical impairment; or
(ii)
except as provided in Subsection 
(9)(b)
, after the pilot period, due to a physical 
objective medical impairment.
(b)
If an eligible employee has a total disability during the pilot period, the office shall 
determine whether the employee has an ongoing disability after the pilot period due 
to a physical objective medical impairment or a mental objective medical impairment.
(10)
A claim brought by an eligible employee for long-term disability benefits under the 
Public Employee's Long-Term Disability Program is barred if it is not commenced 
within six months from the eligible employee's date of disability, unless the office 
determines that under the surrounding facts and circumstances, the eligible employee's 
failure to comply with the time limitations was reasonable.
(11)
(a)
If the office denies or terminates a claim for long-term disability benefits, the 
eligible employee shall have the right to appeal the denial or termination:
(i)
to the executive director of the office within 60 days after the day of the denial or 
termination of long-term disability benefits; and
(ii)
in accordance with Section 
49-11-613
.
(b)
An appeal of a denial or termination of long-term disability benefits described in 
Subsection 
(11)(a)
 is barred if it is not commenced within the time limit described in 
Subsection 
(11)(a)
.
(12)
Medical or psychiatric conditions that existed before eligibility may not be a basis for 
disability benefits until the eligible employee has had one year of continuous eligibility 
in the Public Employees Long-Term Disability Program.
(13)
If there is a valid benefit protection contract, service credit shall accrue during the 
period of total disability, unless the disabled eligible employee is:
(a)
exempted from a system;
(b)
eligible to retire with an unreduced retirement allowance; or
(c)
otherwise ineligible for service credit.
(14)
Regardless of any medical evidence provided by the employee to support the 
application for disability, an employee is not eligible for long-term disability benefits 
during any period in which the employee:
(a)
makes a claim that the employee is able to work; or
(b)
has a pending action in a court or before any federal, state, or local administrative 
body in which the employee has made a claim that the employee is able to work.
(15)
Notwithstanding the provisions of Section 
49-11-618
, upon written request by an 
employer, information obtained under this part may, upon an order of a court or an 
administrative law judge, be released to an employer who is a party in an action under 
Subsection 
(14)
.
(16)
(a)
Subject to Subsection 
(16)
(b), if an eligible employee is receiving long-term 
disability benefits on the date of the eligible employee's death, the program shall pay 
the eligible employee's beneficiary, as defined in Section 
49-11-102
, a lump sum 
payment equal to three months of the eligible employee's monthly disability benefit.
(b)
Section 
49-21-402
 does not apply to a lump sum payment described in Subsection 
(16)(a)
.
(17)
An eligible employee receiving long-term disability benefits is eligible for any life 
assistance counseling that the program offers.
(16)
(18)
On or after May 1, 2025, but on or before November 1, 2025, the office shall 
provide a written electronic report to the Retirement and Independent Entities 
Committee regarding the costs and benefits of the changes to the disability benefits 
during the pilot period.
Section 4. 
Intent Language.
The Legislature intends that beginning in fiscal year 2025-26:
(1)
the state-paid basic life insurance benefit for state employees be increased from $25,000 
to $50,000;
(2)
the state-paid life insurance benefit for exempt state employees include a $300,000 tier 
for exempt state employees with salaries over $75,000 per year and a $400,000 tier for 
exempt state employees with salaries over $100,000; and
(3)
the cost of the benefit enhancements authorized in this bill be funded by a reduction in 
the employer paid premium rate described in Section 
49-21-301
, which equals $2.4 
million.
Section 5. 
Effective Date.
This bill takes effect:
(1)
except as provided in Subsection (2), May 7, 2025; or
(2)
if approved by two-thirds of all members elected to each house:
(a)
upon approval by the governor;
(b)
without the governor's signature, the day following the constitutional time limit of 
Utah Constitution, Article VII, Section 8; or
(c)
in the case of a veto, the date of veto override.
3-7-25 4:06 PM