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Indian Trail HR proposes 8 weeks paid paternity leave, raises health-reimbursement cap; town braces for insurance cost increases
Summary
The town's Human Resources director proposed eight weeks of paid paternity leave and increasing the town's HRA from $1,000 to $1,500, and warned the council officials to expect about a 10% rise in health-insurance costs in the FY26 plan year.
The town's Human Resources director presented two benefit proposals for council consideration and flagged expected increases in insurance costs that could affect the FY26 budget.
Leave and reimbursement proposals: The HR director said she is recommending an eight-week paid paternity leave policy, effective July 1, for birth parents, non-birth parents, and adoptive or foster parents. "I'm recommending July 1 that we do 8 weeks of paid paternity leave, for, people expecting for mothers and fathers, and for people adopting and fostering," she said, citing peer jurisdiction practices (Union County provides eight weeks; Matthews and Kannapolis offer six weeks; Waxhaw offers 12).
The HR director also proposed raising the health-reimbursement arrangement (HRA) from $1,000 to $1,500 to help with out-of-pocket costs should deductibles rise. She said the town had spent only a portion of the HRA budget this year: "I've put $10,000 in this line item and we've only spent $3,000 this year," she said, and noted the HRA helps employees with major medical expenses like MRIs or hospitalizations.
Insurance market changes and procurement: HR and finance staff told the council they had received notice from the League of Municipalities that the League was exiting the health-insurance business. The HR director said she had begun soliciting proposals from brokers and other pools, and estimated health/dental/vision/life costs could rise about 10% for the coming plan year. She also warned the town may face higher property and liability premiums tied to broader market conditions.
Why it matters: Changes to benefits and to insurance premiums affect both employee take-home pay and the town's personnel budget. The HR director framed the proposals as part of competitiveness and retention: paying competitive benefits reduces turnover and supports operations.
Next steps: The HR director said staff would continue shopping the insurance market, present options for the council and refine FY26 estimates as proposals and renewals arrive.
