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Austin Council approves MetLife private plan for paid family and medical leave

Austin City Council · August 5, 2025
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Summary

Council approved a MetLife private-plan resolution that mirrors the state program, citing a two-year rate guarantee and projected savings vs. the state premium; council discussion noted a 50/50 premium split and an estimated city cost of about $65,000–$70,000 annually if the city pays half.

The Austin City Council voted unanimously to adopt a private paid family and medical leave plan with MetLife rather than defaulting to the state-run option. Treasurer Trish told the council that MetLife "came in as the low bid with a 2 year rate guarantee," and staff recommended the private plan because it is expected to be less expensive than the state premium and may provide a smoother initial administration.

Council members asked staff to confirm implementation details, including the anticipated 50/50 employer-employee premium split allowed under state rules. During the discussion staff and council noted the city’s additional annual cost if it covers half of premiums is likely in the range of $65,000 to $70,000, pending labor negotiations and final enrollment.

The resolution to adopt the MetLife private plan passed by voice vote (clerk recorded a 7–0 outcome). Staff said the MetLife plan will be administered to mirror the state plan as required but that the two-year rate guarantee gives the city a short-term premium advantage.

The council asked staff to continue coordination with labor negotiators and to report back if plan costs or the state's rules change before the plan’s 01/01/2026 effective date.