Virginia City moves to contract administrator for Minnesota paid family and medical leave
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Summary
The committee moved to pursue contracting with Madison National Life to administer Minnesota''1s new paid family and medical leave program starting Jan. 1, 2026; staff said the service would cost about $76,235 per year and could offset short-term disability expenses.
Virginia City''1s committee of the whole voted Oct. 21 to move forward with contracting a private administrator to manage the state-mandated Minnesota Paid Family and Medical Leave program that begins Jan. 1, 2026.
City Administrator Ritzy Benesperit told the committee the city''1s practical options were to self-administer the new state program or hire an outside firm. HR and benefits staff recommended using an outside administrator, and Councilor Johnson moved to contract with Madison National Life; the motion was supported and advanced for council action.
Why it matters: The statute requires both employer and employee contributions and creates a new paid-leave benefit that will interact with the city''1s existing short-term disability and sick leave policies. City staff told the committee contracting with a firm could reduce staff time spent on claims administration and could lower the city''1s short-term disability costs because some leave will be paid through the state program.
Council and staff described the practical trade-offs. Joy Rudabush, the city''1s new human resources coordinator, said she still was gathering implementation details but flagged administrative burden as a key factor. Megan (city finance staff) said the city would create a separate budget line and work through collective bargaining effects, and that the city can collect, under statute, up to 50% of the employer tax from employees depending on labor agreements.
Cost and budget: Finance staff told the committee the contract figure being discussed was about $76,235 per year to contract with Madison National Life for administration. Committee members said that cost would be budgeted across departments and that some costs would be offset by reductions in the city''1s short-term disability expenses and by moving administrative burden to the contractor. Councilor Buck Snyder asked for follow-up details on exactly how the cost would be allocated by department; staff said they would provide those numbers.
What the committee directed: The committee approved moving the contract discussion forward to the full city council for final action and asked staff to provide additional comparative cost information (self-administration vs. contractor) before the council meeting.
Speakers quoted in committee discussion included City Administrator Ritzy Benesperit; Aaron Underland of Range Reliable Agency (presenting earlier on medical insurance); Joy Rudabush (HR coordinator); Megan (finance staff); and council members who moved and supported the motion, including Councilor Johnson and Councilor Buck Snyder.
The council-level vote and any contract finalization will determine whether the city hires Madison National Life to administer the state program or instead pays the state tax directly or self-administers.
