Actuary: paid-leave fund balance fell to $616.7M but still meets solvency metrics

The Connecticut Paid Leave Authority's quarterly actuarial review presented on March 12 showed a net negative activity of about $22.2 million for the second quarter (the period ending Dec. 2025), lowering the fund balance to $616.7 million from a previous $638.9 million.

"Overall, what that translates from a fund balance perspective is that the net fund balance...decreased from 638.9 million down to 616.7 million," the actuary said during the presentation. The actuary attributed the change to higher-than-projected incurred claims (about $253.8 million for the period versus a projection of $241.6 million), while contributions earned and investment income were slightly higher than earlier projections.

The actuary reviewed a full-year projection through June 2026 that reflects a lowered contribution estimate and increased incurred claims; staff said the estimated net activity for the full fiscal year is -$15.6 million and projected an ending fund balance near $623.3 million. "With this net fund balance of 616.7 million, we continue to meet the metrics that have been set out," the presenter said, summarizing that the fund's position remains strong under the board's established metrics.

Board members did not raise additional substantive questions on the actuarial slides during the presentation; the actuary said staff will continue to refine projections with next-quarter results and a detailed study of claims experience.

The actuarial presentation will feed into the authority’s ongoing rate- and solvency-monitoring process as staff prepare future contribution-rate recommendations and quarterly financial reporting.