Item Description:
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Approve agreement to purchase Family and Medical Leave (PFML) insurance benefits on behalf of Hennepin County
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Resolution:
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BE IT RESOLVED, that the Hennepin County Board of Commissioners delegates authority to the County Administrator to negotiate and finalize a new agreement with MetLife, Inc. or its agent for the procurement and/or administration of Paid Family and Medical Leave (PFML) insurance benefits, with services commencing January 1, 2026 and extending for a term of at least two years; and
BE IT FURTHER RESOLVED, that the PFML premium will be evenly split between the employer and employees (including both organized and non-organized) via payroll deduction; and
BE IT FURTHER RESOLVED, that the County Administrator or designee is directed to submit all required PFML reports to the State of Minnesota.
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Background:
Minnesota Statute 268B allows workers to receive job and benefits protection and wage replacement when they take extended time off from work for qualifying reasons. The state legislature has set the state’s 2026 PFML premium rate to .88% of total employee wages as reported in 2025 to fund leave claims, allowing the premium to be evenly split between the employer and employees.
Employers can choose to meet their responsibilities under Minnesota Paid Leave by providing employees with an equivalent plan that meets or exceeds the coverage offered by the state. The two types of paid leave equivalent plans are insurance carrier plans and self-insured plans. At this time, the county anticipates purchasing a fully insured plan from the carrier. The county has selected MetLife because of its experience providing this leave in other states and because of its competitive pricing.
The county selected MetLife through its service cooperative, Sourcewell. Sourcewell’s statutory purpose is to assist agencies in meeting specific needs which are more efficiently delivered cooperatively than by an entity individually. Minn. Stat. § 123A.21, subd. 2. Sourcewell, through a competitive solicitation process, awarded a contract to MetLife, and the county may now utilize that relationship because of its membership in Sourcewell.
Partnering with MetLife, Inc. for PFML insurance will result in a 10% premium savings ($800,000) when compared to the State plan. These savings will inure to the benefit of both county employees and the county. The premium share for employees will be the equivalent of $0.00395 per dollar earned. The county’s contribution will be approximately $3.5M per year. This equal cost sharing has been agreed to by Hennepin County organized labor and communicated to union membership.
Finally, if the county elects to include another ancillary benefit such as Short-term disability, Long-term disability, Supplemental Health or Life insurance, there will be a rate guarantee to 2 years.
recommendation
Recommendation from County Administrator: Recommend Approval