Utah § 49-11-404 - Benefit protection contract authorized -- Annual report required.

Full text of Utah Utah Code § 49-11-404 — Benefit protection contract authorized -- Annual report required., with citation guidance and answers to common questions.

§ 49-11-404. Benefit protection contract authorized -- Annual report required.

Effective 7/1/2022
49-11-404.  Benefit protection contract authorized -- Annual report required.
(1)
(a) A participating employer may establish a salary protection program under which 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; 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.


Amended by Chapter 122, 2022 General Session

Source: official Utah text · Last verified 2026-08-27

Frequently Asked Questions About Utah § 49-11-404

What does Utah Code § 49-11-404 cover?

Section 49-11-404 ("Benefit protection contract authorized -- Annual report required.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 49-11-404?

A common citation format is "Utah Code § 49-11-404" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 49-11-404 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Utah.