SB 22: State Employee Benefit Amendments - Utah

Amended 2/13/2025 11:02:796 → Substitute #1 · 6 edits

MODERATE

This bill modifies Utah's public employee long-term disability program by updating definitions of gainful employment, adding a death benefit for disabled employees, expanding life insurance coverage for exempt employees, and directing savings from reduced disability premiums to fund these changes. The bill also clarifies how overtime pay factors into salary calculations and establishes a timeline for reporting on the pilot program's effectiveness.

Scope change

The bill applies to all eligible state employees covered under the Public Employees' Long-Term Disability Act, with specific provisions for exempt employees regarding life insurance benefits.

DEFINITION

The definition of 'gainful employment' now includes pay for time exceeding an employee's regular schedule in the calculation of regular monthly salary, which affects disability benefit calculations.

BENEFITS

A new death benefit of three months of monthly disability payments is established for employees receiving long-term disability benefits who pass away.

Life assistance counseling services offered by the Utah State Retirement Office are now available to employees receiving long-term disability benefits.

The state-paid basic life insurance benefit for exempt state employees increases from $25,000 to $50,000, with additional tiers of $300,000 and $400,000 for higher salary employees.

FISCAL

Savings from a reduction in employer-paid long-term disability premium rates (estimated at $2.4 million) will be used to fund the new benefit enhancements.

TIMELINE

A pilot period runs from July 1, 2023 to June 30, 2026, with a required report to the Retirement and Independent Entities Committee between May 1 and November 1, 2025.

Amended Excerpts 2/13/2025 11:02:796 → Amended 2/13/2025 11:02:796 · 6 edits

MODERATE

This bill updates Utah's public employee benefit laws by clarifying definitions for disability benefits, establishing death benefits for disabled employees, and increasing life insurance coverage for exempt state employees. The changes aim to provide clearer guidance on benefit eligibility and ensure financial protections for state workers facing disability or death.

Scope change

The bill expands applicability to include death benefits for employees receiving long-term disability and modifies how regular monthly salary is calculated for benefit purposes.

ELIGIBILITY

Establishes a death benefit for employees receiving long-term disability benefits

DEFINITION

Updates the definition of gainful employment for long-term disability purposes

REQUIREMENT

Includes overtime pay exceeding regular schedules in the calculation of regular monthly salary for benefit calculations

Makes life assistance counseling available to employees receiving long-term disability benefits

FISCAL

Increases state-paid basic life insurance benefit for exempt state employees from $25,000 to $50,000 and creates additional benefit tiers

TECHNICAL

Updates beneficiary designation procedures and revocation rules under the Uniform Probate Code

Enrolled → Amended Excerpts 2/13/2025 11:02:796 · 1 edit

MINOR

The bill was amended to clarify that the increase in state-paid basic life insurance benefits from $25,000 to $50,000 applies to exempt state employees, not just regular state employees. This change ensures that the life insurance benefit enhancement covers a broader group of employees.

Scope change

The scope of the life insurance benefit increase was expanded to include exempt state employees.

FISCAL

The intent language was changed to specify that the state-paid basic life insurance benefit increase from $25,000 to $50,000 applies to exempt state employees, whereas the original version did not explicitly include this group.

Introduced → Enrolled · 6 edits · Mar 19, 2025

MODERATE

This bill modifies Utah's public employee long-term disability benefits by updating definitions of gainful employment, expanding salary calculations to include overtime pay, establishing a death benefit for disabled employees, and making life assistance counseling available. The changes aim to improve benefit fairness and support for employees facing disability.

Scope change

The bill applies to all public employees covered under Utah's long-term disability program, with specific provisions for state employees and certain exempt employees.

DEFINITION

Changed the definition of 'gainful employment' to require work at 60% of regular monthly salary rather than just minimum wage, making it harder for employees to be considered gainfully employed.

Added provision that overtime pay exceeding regular schedules must be included in the calculation of regular monthly salary for benefit purposes.

BENEFITS

Established a new death benefit paying three months of disability benefits to beneficiaries of employees who die while receiving long-term disability benefits.

Made life assistance counseling services available to employees receiving long-term disability benefits.

FISCAL

Directs that savings from reduced long-term disability premium rates be used to fund the cost of these benefit changes.

TIMELINE

Set a pilot period from July 1, 2023 to June 30, 2026 for certain disability benefit provisions, with a required report to the legislature by November 1, 2025.

State Employee Benefit Amendments

What changed between versions

How they voted

Actions timeline

Sponsors