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Actuarial update: CT Paid Leave fund posts $612.4 million incurred balance through Dec. 2024; full-year projection revised
Summary
Spring Group presented its quarterly actuarial results for the CT Paid Leave trust fund for the six months ending Dec. 31, 2024, showing an incurred ending fund balance of $612.4 million and a revised full-year projection of $642.8 million driven by higher investment income and lower other expenses.
Spring Group presented the Connecticut Paid Leave Authority's actuarial quarterly update for the six-month period July 1'Dec. 31, 2024, and outlined a revised full fiscal-year projection through June 30, 2025.
Actuarial six-month results (incurred basis) - Beginning fund balance (net of outstanding contributions and claim payments): $628.7 million. - Net activity for the six months: negative $16.3 million. - Ending fund balance (incurred basis): $612.4 million. - Contributions earned in the six months: $215.0 million. - Investment income: $14.8 million (higher than prior projection of $11.3 million). - Incurred claims: $224.7 million. - Other expenses: $21.4 million.
Spring Group actuary Harindra said the quarter's modestly better performance versus the prior projection was driven primarily by higher investment income, slightly higher contributions and slightly lower incurred claims.
Full-year projection (July 2024'June 2025) - Revised net activity (projected): $14.1 million (positive). - Projected ending fund balance (incurred basis): $642.8 million. - Revised investment income projection: $26.0 million (up from $24.9 million previously). - Other expenses were reduced by about $5.0 million because a $5.0 million transfer to the trust fund previously expected in January was not needed and therefore not taken.
Finance director Dave reviewed month-to-month cash and budget variances through January and February 2025. Highlights included a January net result of negative $984,000 (largely reflecting a decision not to transfer $5.0 million from the contribution account to operations), contribution receipts of $106.6 million for the most recent quarter (about 6.6% higher than the same quarter a year earlier), and benefit payments averaging roughly $8.0 million per week in January and ramping back up to about $8.5 million per week in February.
Dave reported a contribution fund balance of approximately $632.2 million and reiterated that the fund remains solvent on both an incurred and cash basis under current projections. He noted seasonal fluctuations in benefit payments and that the authority continues enforcement work with employers, which contributed to higher contribution receipts year over year.
The actuarial and finance presentations were given to the board with opportunity for questions; no substantive questions were raised following the actuarial presentation.
