Bill > SB5292

This bill modifies how the state's paid family and medical leave (PFML) program calculates its premium rates without increasing the overall premium rate, which is capped at 1.20 percent. Specifically, it changes the process for setting the total premium rate by requiring it to be determined annually based on a report from the office of actuarial services, rather than the previous method of calculating it based on prior year expenses and account balances. The bill also updates the requirements for the actuarial services office's annual report to include maintaining solvency for the next four years and achieving a four-month reserve by the end of the 2030 rate collection year, defining a "four-month reserve" as projected average monthly expenses multiplied by four. These changes are intended to ensure the financial stability of the PFML program while keeping the total premium rate at its current maximum.