Authority reports stable fund balance, notes rising claim starts; staff to refine projections with actuaries
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Summary
Finance staff reported a contribution fund balance above $574 million, described higher benefit payments and a cooling labor market affecting contribution revenue; the CEO said January saw the highest number of claim starts on record and staff will work with actuaries and Aflac to update forecasts.
The CT Paid Leave Authority received a detailed finance briefing and a legislative and CEO update that together painted a picture of near‑term volatility in claims payments and contribution revenue.
Maddie gave a brief legislative summary: the 2026 short session began last week and will adjourn May 6; the Authority did not file its own bills but staff are monitoring proposals that could affect the program and have briefed House and Senate caucuses. The Authority will continue briefings, distribute a monthly legislative newsletter and provide sample language for legislators to share with constituents.
Holly and Dave presented finance and audit information. Dave reported operating results and benefit activity: benefit payments in recent months averaged roughly $9–9.5 million weekly; December benefits paid were just under $38 million for the month and January benefits paid were $45.9 million (the January total reflected a five‑week reimbursement). The contribution fund balance was reported at over $574 million as of December. For the last calendar quarter contributions staff reported approximately $111.4 million. Year‑to‑date activity included negative variances driven by higher than budgeted benefits paid and lower contribution revenue compared with prior assumptions. Dave said staff lowered contribution‑revenue assumptions to the budget level because the state labor market has cooled (slower job growth and a declining labor force), and that staff are analyzing latest contribution data with actuaries.
Dave projected that after designations and transfers the fund’s operating account shows a modest positive variance in some views and a negative variance in others; the net projected impact for the contribution account was described as a negative $6.3 million variance but with positive activity remaining for the contribution account heading into June 2026. Staff emphasized close work with actuaries and noted that payments can lag approvals: CEO Erin said January was the highest month ever for claim starts and that claim approvals will cause payments to rise in subsequent periods.
Board members asked few follow‑ups; staff said further actuarial analysis will be presented at the next finance committee and board meetings.