2006 Utah Code - 49-11-404 — Benefit protection contract authorized.

     49-11-404.   Benefit protection contract authorized.
     (1) (a) A participating employer may establish a salary protection program under which its 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 disabled member's rate of compensation at the time of disability;
     (ii) be substantially equivalent to the long-term disability programs offered under Chapter 21, Public Employees' Long-Term Disability Act; and
     (iii) comply with requirements adopted by the board.
     (2) A benefit protection contract shall allow:
     (a) the disabled member 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 disabled member to remain eligible during the contract period for any benefits provided by the system that covers the member; and
     (d) the benefit for the disabled member 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) The board may adopt rules to implement and administer this section.

Renumbered and Amended by Chapter 250, 2002 General Session