Paid Leave fund sees sustained high claims; CEO says AFLAC TPA contract finalized, bond authorization reduced to $26.2M

David Salazar Austin presented the finance report on May results and a June preview and told the board that benefits are running at roughly $8.9 million per week. "The benefits that were paid this month were over $44.4 million," he said of the May payments; a June preview showed benefits around $36 million for that month. David said contribution and investment income trends remain generally positive but that higher benefit payments are reducing the amount available to add to reserves and that actuarial work and projections are underway.

Commissioner Ava Zimmerman asked whether the negative variance would change projections. David and other staff clarified that investment income and contributions are stable but upward claims trends mean there will likely be less available to put into reserves and that staff project scenarios for finance committee review in late July and the full board in August.

In the CEO report, Erin told the board that the authority negotiated and finalized a third‑party administrator contract with AFLAC. "We did select AFLAC. That agreement was finalized," she said. Erin also explained that the bond bill this year deauthorized a portion of the authority's prior $50 million authorization and reduced the authorization to about $26.2 million; staff said that amount aligns with funds already allocated or planned for near‑term projects.

Why it matters: A sustained high run rate for benefit payments affects contribution fund balances and reserve strategy; the finalized TPA contract and the updated bond authorization are material operational and funding developments.

Next steps: Staff will present updated actuarial projections to the finance committee in late July and to the full board in August; staff will continue to monitor claims, contributions and reserve status.