Council opts for MetLife private plan to administer Minnesota paid family and medical leave

The Richfield City Council on Sept. 23 approved a resolution to participate in a privately administered Minnesota paid family and medical leave plan through MetLife and set premium sharing for the 2026–27 plan year. Why it matters: beginning Jan. 2026, Minnesota’s paid family and medical leave program takes effect statewide; local government employers may choose the state-administered plan or an approved private plan. Richfield selected an approved private vendor that staff said provides lower guaranteed rates and administrative support. Staff recommended MetLife because it offered a guaranteed rate of 0.759% of employees’ total wages compared to an estimated 0.88% under the state plan, and because MetLife commits to faster processing and will handle customer service inquiries, staff said. The proposed percentage is split 50/50 between the city and employees, staff said, so both parties would benefit from reduced cost compared with the state plan. Staff also said Richfield will transition short- and long-term disability processing to MetLife for administrative efficiency while retaining its self-insured short-term disability plan and current biweekly hourly accrual practice. As staff described the policy, MetLife will provide guidance on using short-term disability accruals together with paid leave to achieve wage replacement up to 100%, and wage-replacement rates will vary by income as prescribed by the state statute. The council approved the resolution authorizing MetLife administration and the premium-sharing arrangement; staff will work with the city’s broker and MetLife to submit the application to the state.