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CT Paid Leave Authority finance committee reviews December shortfall, projects $575M year-end fund balance
Summary
Finance staff reported a $987,000 deficit for December (about $73,000 better than budget), higher-than-expected benefit payments year-to-date, and a contribution fund balance of $567 million at Dec. 31; staff projected an approximate $575 million fund balance for June 30, 2025.
Dave, the finance presenter for the CT Paid Leave Authority, told the finance committee on Tuesday that December produced a negative result of $987,000, roughly $73,000 better than budgeted. He said year-to-date variances are driven mainly by benefits paid exceeding budget while contribution and investment income and fund-recovery activity have partially offset that shortfall.
The report matters because the authority uses those figures to project solvency into the next fiscal year. Dave said the contribution fund balance at the end of December was $567 million and that, after expected quarterly contributions and typical benefit outflows, the fund balance is projected to be about $575 million on June 30, 2025.
In his presentation Dave detailed line-item movements: bond activity for the month was just under $90,000 with year-to-date bond spending of $611,000 for system customization, and available bond funds of about $1.775 million remain for the fiscal year. He said investment income for the period totaled about $2.266 million at an earned rate near 4.7 percent and that short-term rate changes from the Federal Reserve affect the yield on the short-term investment fund. For the month, benefits paid totaled about $34.1 million, averaging roughly $8.45 million per week; Dave said benefits activity fell seasonally in December and began to pick up again in January.
A committee member asked for clarification on the fund-balance figure and upcoming contributions; Dave said a January quarterly contribution will be ‘‘in the neighborhood of $95–110 million’’ and that April’s quarterly contribution historically is the largest, about $120 million. When asked why earlier projections appeared higher, Dave explained the difference between an accrual presentation (which includes contributions earned in June but collected in July) and the cash-basis monthly presentation the committee reviews.
Committee members did not object to the presentation and asked no formal follow-up motions. The committee noted staff will update projections again when additional quarterly data arrive and when staff (including Harindra) return to present updated actuarial projections.
The committee took routine procedural actions earlier in the meeting (approving Nov. 22 and Dec. 20 minutes and adopting a monthly meeting schedule) and adjourned at 9:22 a.m.
