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PUBLIC EMPLOYEES LONG-TERM DISABILITY ACT

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AMENDMENTS

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2017 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Susan Duckworth

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Senate Sponsor: Karen Mayne

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8     LONG TITLE
9     Committee Note:
10          The Retirement and Independent Entities Interim Committee recommended this bill.
11     General Description:
12           This bill modifies the Public Employees' Long-Term Disability Act by amending
13     provisions relating to long-term disability benefits.
14     Highlighted Provisions:
15          This bill:
16          ▸      modifies the circumstances when a monthly long-term disability benefit shall be
17     reduced or reimbursed;
18          ▸     requires an eligible employee that is under a total disability to inform the Public
19     Employees' Insurance Program of certain information;
20          ▸     provides penalties if an eligible employee knowingly misrepresents or fails to
21     disclose certain information; and
22          ▸     makes technical changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          This bill provides a special effective date.
27     Utah Code Sections Affected:

28     AMENDS:
29          49-21-402, as last amended by Laws of Utah 2013, Chapter 316
30     ENACTS:
31          49-21-409, Utah Code Annotated 1953
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 49-21-402 is amended to read:
35          49-21-402. Reduction or reimbursement of benefit -- Circumstances --
36     Application for other benefits required.
37          (1) A monthly disability benefit may be terminated unless:
38          (a) the eligible employee is under the ongoing care and treatment of a physician other
39     than the eligible employee; and
40          (b) the eligible employee provides the information and documentation requested by the
41     office.
42          (2) The monthly disability benefit shall be reduced or reimbursed by any amount
43     received by, or payable to, the eligible employee from the following sources for the same
44     period of time during which the eligible employee is entitled to receive a monthly disability
45     benefit:
46          (a) Social Security disability benefits, including all benefits received by the eligible
47     employee, the eligible employee's spouse, and the eligible employee's children as determined
48     by the Social Security Administration;
49          (b) workers' compensation indemnity benefits;
50          (c) any money received by judgment, legal action, or settlement from a third party
51     liable to the employee for the disability;
52          (d) unemployment compensation benefits;
53          (e) automobile no-fault, medical payments, or similar insurance payments;
54          (f) any money received by a judgment, settlement, or other payment as a result of a
55     claim against an employer; [and]
56          (g) any payments made for sick leave, annual leave, or similar payments[.]; and
57          (h) compensation received for employment, including self-employment, except for
58     eligible amounts from approved rehabilitative employment in accordance with Section

59     49-21-406.
60          (3) The monthly disability benefit shall be reduced by any amount in excess of
61     one-third of the eligible employee's regular monthly salary received by, or payable to, the
62     eligible employee from the following sources for the same period of time during which the
63     eligible employee is entitled to receive a monthly disability benefit:
64          (a) any retirement payment earned through or provided by public or private
65     employment; and
66          (b) any disability benefit resulting from the disability for which benefits are being
67     received under this chapter.
68          (4) After the date of disability, cost-of-living increases to any of the benefits listed in
69     Subsection (2) or (3) may not be considered in calculating a reduction to the monthly disability
70     benefit.
71          (5) Any amounts payable to the eligible employee from one or more of the sources
72     under Subsection (2) are considered as amounts received whether or not the amounts were
73     actually received by the eligible employee.
74          (6) (a) An eligible employee shall first apply for all disability benefits from
75     governmental entities under Subsection (2) to which the eligible employee is or may be
76     entitled, and provide to the office evidence of the applications.
77          (b) If the eligible employee fails to make application under this Subsection (6), the
78     monthly disability benefit shall be suspended.
79          (7) During a period of total disability, an eligible employee has an affirmative duty to
80     keep the program informed regarding:
81          (a) the award or receipt of an amount from a source that could result in the monthly
82     disability benefit being reduced or reimbursed under this section within 10 days of the award or
83     receipt of the amount; and
84          (b) any employment, including self-employment, of the eligible employee and the
85     compensation for that employment within 10 days of beginning the employment or a material
86     change in the compensation from that employment.
87          (8) The program shall use commercially reasonable means to collect any amounts of
88     overpayments and reimbursements.
89          Section 2. Section 49-21-409 is enacted to read:

90          49-21-409. Violations -- Penalties.
91          In addition to other remedies provided in this title, if an eligible employee knowingly
92     makes a material misrepresentation to the program or knowingly fails to disclose the award or
93     receipt of amounts to the program as required under Section 49-21-402, the program may:
94          (1) suspend the monthly disability benefits to the eligible employee;
95          (2) terminate all monthly disability benefits to the eligible employee;
96          (3) terminate or cancel any other benefits provided under this title during a period of
97     total disability; or
98          (4) require the eligible employee to repay the amount of any overpayment resulting
99     from the violation to the program.
100          Section 3. Effective date.
101          This bill takes effect on July 1, 2017.






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