DEPARTMENT: Human Resources
FILE TYPE: Consent Action
TITLE
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Authorization To Offer One Supplemental Group Short Term Disability Plan and Approval of Rate For 2026
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PURPOSE/ACTION REQUESTED
Authorize to change to one supplemental plan option for Group Short Term Disability benefits administration and approve 2026 rate.
SUMMARY
Short-Term Disability is a voluntary, employee paid benefit offered by the County. Due to the implementation of Minnesota Paid Family and Medical Leave (PFML) in 2026, it is no longer practical for the County to continue offering traditional short-term disability (STD) plans with multiple elimination period options, as has been done in the past. To align with PFML, the County will now offer a new STD benefit that is supplemental to paid medical leave under PFML.
PFML will provide up to 12 weeks of paid medical leave for most employees. Wage reimbursement under PDML is variable based on an employee's salary. The new voluntary STD plan is designed to coordinate with PFML by supplementing the state's medical leave payments, providing employees with up to 60% wage replacement for wages not provided by PFML. The plan will include a seven (7) day elimination period.
Deloitte Consulting LLP reviews the County's STD claims experience annually and provides premium rate recommendations. Their 2026 recommendation is based on the new plan design, an analysis of premiums collected, and claims paid over the past year, and consideration of the self -insured plan reserves. Deloitte's recommended premium rates for the 2026 STD plan is .0685 of $10 weekly benefit. The annual average salary at the county will have a STD premium of $3.19 a pay period.
RECOMMENDATION
recommendation
Staff recommends approval of voluntary supplemental Group Short Term Disability Plan.
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EXPLANATION OF FISCAL/FTE IMPACTS
County costs will be included in the 2026 budget planning process. Group Short Term Disability Plan is fully funded by employee contributi...
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