PLEASE NOTE: Legislative Information cannot perform research, provide legal advice, or interpret Maine law. For legal assistance, please contact a qualified attorney.
An Act To Encourage Maine Employers To Offer and Employees To Enroll in Disability Income Protection Plans in the Workplace
Be it enacted by the People of the State of Maine as follows:
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.  Definitions.     As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
 
A.  "Disability income protection plan" or "plan" has the same meaning as in Title 24-A, section 2804-B.
 
B.  "Elimination period" means the time period during which an employee is unable to work due to sickness or injury but is not yet eligible for disability benefits under the plan.
 
C.  "Employee" means an individual who performs services for an employing unit.
 
D.  "Employing unit" has the same meaning as in Title 26, section 1043, subsection 10.
 
E.  "Qualified long-term disability income protection plan" means an employer-sponsored disability income protection plan that replaces at least 50% of predisability earnings prior to any applicable offsets, offers benefits for at least 24 months, has an elimination period of no greater than 185 days and is either:
 
(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.
 
F.  "Qualified short-term disability income protection plan" means an employer-sponsored disability income protection plan that replaces income of at least $200 per week, offers benefits for at least 6 months, has an elimination period of no more than 30 days and is either:
 
(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.
 
2.  Credit allowed.     A taxpayer constituting an employing unit is allowed a credit against the tax imposed by this Part for each taxable year beginning on or after January 1, 2017 for either a qualified short-term disability income protection plan or a qualified long-term disability income protection plan.
 
3.  Limit.     The total annual credit for a taxpayer under this section is limited to an amount equal to $50 for each employee enrolled after January 1, 2017 in either a qualified short-term disability income protection plan or a qualified long-term disability income protection plan. The credit may be taken for no more than 5 years.
 
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.