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RSU 23 staff outline options for Maine paid family leave, recommend private-plan alternative
Summary
Assistant Superintendent Eric Hanson presented memo-backed options on April 17, 2025, comparing Maine’s state-paid family leave program with approved private-plan alternatives; the memo cites 26 M.R.S. §850-H, notes a state 1% payroll tax, and recommends pursuing a private plan with reduced rates and projected savings, with a final board decision due in May 2025.
Assistant Superintendent Eric Hanson presented implementation options for Maine’s Paid Family Medical Leave program at the RSU 23 board meeting on April 17, 2025, and provided a written memo dated April 10, 2025. The memo explains that employers may either participate in the state-managed program or apply for an approved private-plan alternative under 26 M.R.S. §850-H.
The memo notes the state program’s 1% payroll tax (split 0.5% employer/0.5% employee) that began January 1, 2025 and explains that private plans must be approved by the Maine Department of Labor and provide benefits equivalent to the state plan. The district’s analysis compared the state option to a private carrier option (citing Guardian Life as an available management option in the memo) and flagged timing differences: private-plan application deadlines and a potential delay in tax collection.
The district memo includes projected savings estimates but presents two different figures in its separate sections: one passage estimates combined savings for district and employees of $130,165, while a later recommendation section cites approximately $84,500 in combined savings to RSU 23 and employees in FY 2026. The memo also states that a private-plan application would need to be submitted by May 31, 2025 and that benefits from an approved private plan could begin in May 2026. The board was told it must take formal action by May 2025 to meet application timelines.
The memo’s recommendation reads in part: "Approve a private insurance carrier for PFML insurance." No final board vote on PFML was recorded in the minutes; the presentation and accompanying memo were entered into the record for future action. The board indicated it would likely explore the private-plan option in May, ahead of the application deadline.
Next steps: administration and HR were expected to return with a formal recommendation and any required documentation for board action before the May 31 application deadline.
