The premium rate for the state’s paid family and medical leave (PFML) program increased from 0.4% to 0.6% in January. Premiums are assessed quarterly, so the second quarter of 2022 is the first in which premiums were collected that had been assessed at the 0.6% rate. According to data from the Employment Security Department (ESD), premiums collected in the second quarter of 2022 were 68.5% higher than premiums collected in the second quarter of 2021.

Earlier this year, financial troubles in the program arose (see here and here). In April, the balance in the family and medical leave insurance (FMLI) account went negative, and the account’s ending balance for April was negative $15.7 million. The account balance rebounded in May, but ESD expects the cash flow issue to recur.

In a meeting of the PFML Advisory Committee yesterday, ESD staff noted that the ending balance for the second quarter of 2022 was $31.6 million, which was higher than the ending balance for the first quarter ($19.1 million). This is the first time a quarterly ending balance has exceeded the prior quarterly ending balance since the end of the first quarter of 2020 (during which benefits became payable). Additionally, premiums exceeded benefits in the second quarter of 2022 for the first time since the second quarter of 2020. (The charts below are screenshots I took during the meeting; the presentation will eventually be posted here under “Past meetings.”)

It is a positive sign that the second quarter ending balance improved somewhat. However, ESD also reported that the account went negative again on July 13 and was negative $4.2 million yesterday. ESD is projecting that the account will go negative again this fall.