An Act To Encourage Maine Employers To Offer and Employees To Enroll in Disability Income Protection Plans in the Workplace
Sec. 1. 24-A MRSA §2804-B is enacted to read:
§ 2804-B. Group disability income protection plan
An employer may offer its employees an employer-sponsored group disability income protection plan in accordance with the requirements of section 2804. As used in this section, "disability income protection plan" means a group short-term disability policy or a group long-term disability policy instituted by an employer that provides income benefits to an employee who is unable to work for an extended period of time because of sickness or an accident. For the purpose of Title 26, section 629, subsection 1, the premium paid by an employee for an employer-sponsored group disability income protection plan issued pursuant to this section is considered a premium that the employee has agreed to pay if the group disability income protection plan provides for appropriate disclosure regarding the plan chosen by the employer, a method of enrollment that allows employees to opt out of coverage and an appropriate time period for employees to voluntarily terminate coverage.
Sec. 2. 36 MRSA §5219-NN is enacted to read:
§ 5219-NN. Credit for disability income protection plans in the workplace
(1) A plan established after January 1, 2017 that allows for employees to opt out of enrollment; or
(2) An existing plan that is reopened for enrollment and allows for employees to opt out of enrollment.
(1) A plan established after January 1, 2017 that allows for employees to opt out of enrollment; or
(2) An existing plan that is reopened for enrollment and allows for employees to opt out of enrollment.
summary
This bill authorizes an employer to provide its employees a group disability income protection plan, which is a group policy instituted by an employer that provides income benefits to an employee who is unable to work for an extended period of time because of sickness or an accident. The group disability income protection plan may be either a short-term plan offering at least 6 months of benefits or a long-term plan offering at least 24 months of benefits. The premium paid by an employee for participation in an employer-sponsored group disability income protection plan is considered a premium that the employee has agreed to pay, as long as certain conditions are met.
An employer is entitled to a tax credit of $50 for each employee enrolled in a group disability income protection plan after January 1, 2017. The credit may be taken by an employer for no more than 5 years.