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Finance committee recommends, board approves switching to private paid family leave plan to save costs
Summary
The finance committee recommended, and the board approved, applying for a private paid family leave plan (MetLife) to defer and reduce district/employee contributions relative to the state program, with estimated near‑term savings.
The RSU 52 Board approved a finance committee recommendation to apply for a private paid family and medical leave plan administered by a third‑party insurer (MetLife) rather than immediately remaining in the state plan.
Finance committee members and district finance staff presented rate comparisons and financial impacts. Under the state program employees began contributing on January 1; the state program will take effect May 1, 2026. The district had the option to apply for a private plan by April 1 that would allow the district and employees to defer contributing to the state plan and pay premiums to a private carrier instead.
District staff presented competitive bids; MetLife offered a rate of 0.94% (0.0094) versus the state's 1% contribution rate. The committee reported the district and employees would collectively save roughly $65,000 over a 13‑month window by choosing the private plan and that the offered MetLife rate is locked for a multi‑year window specified in the vendor agreement. The board voted to authorize applying for the MetLife plan and to refund employees any contributions toward the private plan made after the chosen start date if applicable.
Committee members noted the initial savings are concentrated in the months before state contributions are required; the committee also noted that if the district later wanted to rejoin the state program it would have to follow statutory procedures and selection criteria in place at that time. The board authorized the superintendent and finance staff to pursue the application to MetLife.
What the move means
- Short‑term financial effect: estimated collective savings (district + employees) of roughly $65,000 over the immediate 13‑month period discussed at the meeting. - Ongoing rate: MetLife bid at approximately 0.94%, slightly lower than the state 1.0% rate; the vendor rate was described as locked for a defined period. - Administrative note: the district will still need to comply with state rules should it later rejoin the state program; employees who already contributed to the state plan from Jan 1–Mar 30 cannot be refunded and those funds remain with the state.
Finance committee reported the recommendation was unanimous; the board approved the recommendation by vote at the meeting.
