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Orono chooses MetLife as paid family and medical leave administrator, citing lower quoted rate
Summary
Facing the statewide Minnesota paid leave law effective Jan. 1, 2026, the council approved an equivalent plan administered by MetLife after staff said MetLife’s quote was lower than the state‑administered rate and offers a two‑year rate guarantee; council approved the contract with discussion of a two‑year commitment and a $500 state filing fee.
Orono staff recommended the city adopt an equivalent paid family and medical leave plan administered by MetLife rather than use the new state‑administered program, and the council approved the recommendation.
Finance staff explained that Minnesota’s new statewide paid leave program begins Jan. 1, 2026, and that employers must either enroll in the state program or secure a state‑approved equivalent plan administrator. After a city RFP, MetLife submitted the lowest quote: 0.79% per $1,000 of wages compared with the state rate cited at 0.88% per $1,000, and the vendor offered a two‑year rate guarantee.
Staff said switching to MetLife would create an approximate premium savings of about $6,000 in the first year for the combined employer/employee share and would require a one‑time $500 state filing fee to register an equivalent plan. The staff presentation emphasized that MetLife already administers other benefits for the city, which could streamline administration.
Council asked whether the city would be locked into MetLife for two years; staff confirmed a two‑year contractual commitment. With that understanding, a council member moved to approve MetLife as the city’s paid family and medical leave administrator and the motion passed unanimously.
Staff will proceed with the state filing for the equivalent plan and implement administrative steps to coordinate payroll, wage reporting and premium payments under the chosen plan.
