In response to the emerging paid family and medical leave (PFML) program financial situation, legislators have modified SB 5649. Originally, the bill would have made various benefit changes to the program.

Yesterday the Senate Labor, Commerce & Tribal Affairs Committee approved a substitute bill that would make fewer benefit changes and would add several actuarial and reporting requirements related to the family and medical leave insurance (FMLI) account.

The actuarial and reporting requirements added in SSB 5649:

• It would create the Office of Actuarial Services in the Employment Security Department (ESD).
• The Office of Actuarial Services would have to report annually to the PFML Advisory Committee on the experience and financial condition of the FMLI account and the lowest future premium rates needed to maintain solvency “while limiting fluctuation in premium rates.”
• Beginning Oct. 1, 2023, ESD would have to report quarterly to the PFML Advisory Committee on premium collections, benefit payments, and account balance.
• ESD would have to ask applicants if their leave is related to the pandemic, in order to monitor potential impacts on fund solvency.
• The Office of Financial Management would have to report to the Legislature by Oct. 1, 2022 on the financial condition of the FMLI account, recommendations for modifying the premium rate structure “to maintain the long-term stability and solvency” of the account, and a comparison of the current rate structure with those of other states with similar programs.
• The bill would create a legislative task force on PFML insurance premiums. The task force would make recommendations on modifications to the premium rate structure “to ensure the lowest future premium rates necessary to maintain solvency” of the account “while limiting fluctuation in family and medical leave insurance premium rates.”
• By Oct. 1, 2024, the Joint Legislative Audit and Review Committee would be required to conduct a performance audit of the implementation of the PFML program.