An Act To Encourage Maine Employers To Offer and Employees To Enroll in Disability Income Protection Plans in the Workplace
Maine Legislature, Session 127, LD 1542
Committee: Insurance and Financial Services
Sponsors: BECK, WHITTEMORE, FOLEY, MORRISON, PRESCOTT
Amends: 24-A MRSA §2804-B, 36 MRSA §5219-N

Legislative Document 
No. 1542 
H.P. 1051 
House of Representatives, January 7, 2016 
An Act To Encourage Maine Employers To Offer and Employees To 
Enroll in Disability Income Protection Plans in the Workplace 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative BECK of Waterville. 
Cosponsored by Senator WHITTEMORE of Somerset and 
Representatives: FOLEY of Wells, MORRISON of South Portland, PRESCOTT of Waterboro. 
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 
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 
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.