Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Human Resources topic
No spam. Unsubscribe anytime.
Superintendent says district will use approved private insurer for state PFML; board hears cost implications
Summary
Superintendent reported the district will not enroll in the state-run Paid Family Medical Leave (PFML) program but will use an approved private insurer; she warned the employer tax (~0.44% of wages, estimated ~$90,000 annually) and higher substitute demand (sub costs exceeded $450,000 in 2024–25) could affect the budget.
At the Stewartville Public School District meeting the superintendent said the district will use a state-approved private insurer to administer Minnesota’s Paid Family Medical Leave (PFML) rather than the state-run system.
"We are not participating in the state program. We are going with a private insurer," the superintendent said, explaining the district’s concern that the state program might not have the bandwidth to handle local claims promptly. The superintendent said the private vendor will charge the same premium rate as the state and must be approved by the state; the district’s vendor application was approved.
The superintendent outlined the program’s basic parameters as presented in state guidance: benefits are a partial wage replacement based on the state average weekly wage (SAWW)—90% of wages for earners under 50% of SAWW, 66% for earners between 50% and 100% of SAWW, and 55% for earners above 100% of SAWW—up to a maximum weekly benefit of $1,423. The program allows up to 20 weeks total (medical and family leave combined), with medical leave up to 12 weeks for serious health conditions and family leave up to 12 weeks for bonding/caregiving/safety/military reasons.
District fiscal implications were highlighted: substitute costs were just over $313,000 in 2021–22 and rose to more than $450,000 in 2024–25. The superintendent estimated the employer’s share for PFML at about 0.44% of wages—roughly $90,000 per year—and cautioned the district could see increased substitute spending as leave use grows. Board members asked about "topping off" (employees using sick or PTO to supplement PFML); the superintendent confirmed topping off is an employer decision and the program can overlap with short-term disability in some cases.
No formal board action was required; the superintendent said staff will publish guidance and an HR web page and notify employees as required by statute.
