CT Paid Leave Authority reports stronger-than-expected fund balance after Q2 actuarial update; transfers, claims discussed

The CT Paid Leave Authority received a quarterly actuarial and financial update at its Feb. 28 meeting, with staff reporting an incurred-basis ending fund balance of about $612.4 million for the six months ending Dec. 31, 2024, and a projected incurred-year-end balance of roughly $642.8 million.

The actuarial presenter, Harindra (Actuary, Spring), told the Authority the six-month net activity was “negative 16.3,” an outcome better than the prior quarter’s projection. Harindra said the improvement was driven primarily by higher investment income, slightly higher contributions and modestly lower incurred claims. “Overall, fund balance continues to remain strong,” Harindra said.

The nut graf: the numbers presented reflect accrual (incurred) accounting. On a cash basis staff projected a lower balance (about $580 million) because some contributions are recognized on an accrual basis in the prior fiscal year. The board and staff focused on differences between projected and actual claims activity, recent contribution trends, and a decision to delay a routine $5 million administrative transfer.

Spring’s summary and staff projections

Spring’s update…