HomeMy WebLinkAboutVIII-09 Approve Paid Leave Administrator - MetLifeCity Council Memorandum
To:Mayor Fasbender & City Councilmembers
From:Kelly Murtaugh,Assistant City Administrator
Date:July 21, 2025
Item:Paid Leave Administrator Approval
Council Action Requested:
Approve selection of MetLife as the private Paid Leave administrator for the City for
2026-2027.
Background Information:
In the 2023 state legislative session, a Paid Family & Medical Leave program was created
and covers nearly all employees in the state of Minnesota. It begins January 1, 2026.
Participation is required in the state-administered program, unless the entity provides a
leave program that is equal to or better than the state program. Integrity Benefits, the
City’s supplemental benefits partner, recently completed the RFP process for a private
Paid Leave administrator on behalf of over 100 cities and counties in Minnesota.
Since the programs must be equivalent or better than the state plan, the important factors
are the premium, rate guarantee, and experience in paid leave claims administration.
Through reviewing the proposals, MetLife offers a premium lower than the state, a two-
year rate guarantee, as well as extensive experience in administering paid leave programs
in other states. The reduced rate will save the city and its employees nearly $12,000 in
premiums each year. Other proposals matched or exceeded the state plan premium rate
and most do not have the experience level of MetLife. MetLife offers a dedicated service
team for cities working with Integrity Benefits to assist with all claims.MetLife is one of
the equivalent private insurer plans approved by the state to ensure that the plan provides
the same or better coverage than the state plan.Therefore, staff recommend selecting
MetLife as the paid leave administrator for the city for 2026-2027.
Financial Impact:
The premium is a new budget item for 2026 whether the state-managed plan or a private
plan is selected.The state filing fee for a private plan is $500 for the city.
Advisory Commission Discussion:
N/A
Council Committee Discussion:
N/A
Attachments:
N/A
VIII-09