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Council approves Madison National Life contract to administer paid family and medical leave program
Summary
Council approved a three-party administrative agreement with Madison National Life to administer the city's paid family and medical leave program. Council discussed cost estimates, possible 50/50 cost-sharing with employees, and noted projected short-term disability savings.
Virginia City councilors approved a contract to enroll the city in a paid family and medical leave program administered by Madison National Life.
Staff said the estimated annual cost based on the city's payroll census is about $76,000 and that the contract rate (0.77% of payroll, per staff estimate) is fixed for the initial term; the cost estimate will vary with changes in payroll. Joy and Megan from staff told the council the program is budgeted for 2026 and that the city may pass up to 50% of the cost to employees consistent with state rules.
Councilors debated whether to keep administration in-house or outsource. Councilor Bach Schneider urged running the new program in-house for at least two quarters to better understand costs; Councilor Johnson said outsourcing preserves staff time and expertise and will likely be the more efficient option. After discussion, the council approved the Madison National Life agreement (roll-call recorded; motion passed 5-2).
Action: council authorized entering an administrative agreement with Madison National Life for paid family/medical leave administration; staff to prepare any necessary MOUs and follow-up implementation steps.
