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Seaford council sets Sun Life proposal for paid-family medical leave compliance
Summary
Council voted to set (for second reading) a Sun Life short-term disability/private-plan proposal to comply with Delaware’s paid family medical leave law, after staff presented cost comparisons with the state plan and other private quotes.
The Seaford council voted unanimously to set a proposed private-plan arrangement with Sun Life for short-term disability and paid-family medical leave compliance.
City staff summarized the new Delaware Paid Family Medical Leave program’s benefits (up to 12 weeks for parental leave, up to six weeks for family caregiving in 24 months, and up to six weeks for an employee’s own serious health condition) and explained employer contribution options. Under the state option staff presented, contributions would begin 01/01/2025 with benefits starting 01/01/2026; the state program cost using current wages was estimated at about $52,687.73.
Staff said two private-plan quotes had been received. Standard Insurance Company’s quote totaled approximately $57,165.74 (including roughly $4,478 in admin fees); Sun Life’s quote came in lower at $50,053 (about 0.76% of qualifying wages). Staff recommended Sun Life, noting it would begin contributions and benefits on 01/01/2026 and that choosing a private plan allows Seaford to avoid the state plan’s 2025 contribution start date.
Councilman Holland moved to set the Sun Life short-term disability proposal (0.76% of qualifying earnings, $50,053) for later formal action, contingent on state acceptance of the opt-out; Councilman Grasset seconded. The motion passed unanimously.
No final contract was executed at the meeting; staff will return with formal documents and any additional details required by the state Department of Insurance.
