Program Will Start In 2023 For State Employees, Opens More Broadly In 2024
Vermont Business Magazine Governor Phil Scott today announced that the State of Vermont has hired The Hartford to create the Vermont Family and Medical Leave Insurance Plan (VT-FMLI), a voluntary paid family and medical leave program that will give all working Vermonters access to affordable paid family and medical leave insurance by 2025. Legislative leaders responded by stating that they will push for universal coverage with more comprehensive benefits.
The plan, similar to a previously proposed Twin State Voluntary Leave Plan put forward in 2019 with the State of New Hampshire, will be available to employers in 2024, and individuals not covered in Phase II beginning in 2025. To help make the benefits more affordable, the program will be anchored by the State employee workforce, who will start receiving coverage in July 2023.
“I have long supported paid family and medical leave, provided it is voluntary and affordable,” said Governor Phil Scott. “By enrolling State employees to create a pool, and opening it up to all employers and individuals, I believe we can accomplish our shared goal of providing the peace of mind of paid family and medical leave more efficiently, affordably and quickly than imposing another mandatory broad-based tax on already over-burdened workers. This truly is a win-win. I look forward to its implementation and I encourage Vermont’s employers to join us in this new program.”
Under VT-FMLI, the new insurance coverage offered by The Hartford will provide enrolled Vermont State employees 60 percent wage replacement for six weeks for qualifying events starting in July 2023. Qualified events include:
- The birth of a child and to care for the newborn child within one year of birth;
- An employee’s adoption of a child or foster care placement, and to care for the newly placed child within one year of placement;
- Caring for the employee’s spouse, child, stepchild, foster child, ward who lives with the employee, parent or parent of the employee’s spouse who has a serious health condition;
- A serious health condition that makes the employee unable to perform the essential functions of their job; or
- Any qualifying exigency arising out of the fact that the employee’s spouse, child, or parent is a covered military member on “covered active duty,” or to care for a covered service-member with a serious injury or illness if the eligible employee is the service-member’s spouse, son, daughter, parent, or next of kin (i.e. “military caregiver leave”).
In 2024, private and non-State public employers with two or more employees will have the ability to select from a number of plan design options that allow them to best support the needs of their employees and their business. Beginning in 2025, individuals who work for Vermont employers that do not offer VT-FMLI, self-employed Vermonters, and employers with one employee can purchase coverage through the VT-FMLI individual purchasing pool, which will be insured by The Hartford. More information can be found by clicking here.
“The Hartford is thrilled to be selected as the insurance partner for the Vermont Paid Family and Medical Leave Insurance program,” said Jonathan Bennett, head of Group Benefits at The Hartford. “As a leading provider of employee benefits and leave management, we understand the value of paid leave to employees in Vermont and have decades of experience offering employers effective paid leave programs. The Hartford has the expertise, technology, and skilled staff to provide a seamless customer experience and make Vermont’s innovative program a success.”
The Hartford is a leading provider of employee benefits products and services, including leave management, group life and disability insurance, as well as other voluntary products. For more information, visit www.thehartford.com/
The program will cost the State approximately $2 million annually – just about $4.50 per week and less than $20/month – for each of its employees.
The State will begin immediately working with partners to encourage employers to enroll in the program as those options open.
Click here to view an FAQ page.
SPEAKER KROWINSKI STATEMENT
Today, House Speaker Jill Krowinski issued the following statement on the launch of the voluntary paid family and medical leave insurance program:
“We have long discussed the need for employees and businesses to have access to paid family and medical leave. The pandemic further highlighted the need for this resource as families struggled to balance their careers and taking care of themselves and their loved ones. I look forward to reviewing the details of the Governor’s program, but at first glance, it does not meet the needs of Vermonters in this moment
“Traveling across the state, employees and businesses alike have been unified in their concerns about three major issues: lack of housing, the need for affordable, quality child care, and a family and medical leave program that does not force individuals to choose between earning a living and taking care of their family. We have an opportunity to make Vermont a state that can lead the nation in supporting working Vermonters and growing a vibrant economy in all 14-counties.
“The legislature will continue to prioritize access to these critical needs this coming session. We will review reports that outline a path forward in January and take testimony from all interested parties to ensure we hear from all voices on the best way to make these policies a reality and lead the way in supporting working families. I was happy to hear that the Governor is open to discussion on a universal, more inclusive program and I look forward to working with the Governor and his team this coming session. I know that we can collaborate to make Vermont the best state to live in and foster a thriving economy.”
STATEMENT OF LIEUTENANT GOVERNOR MOLLY GRAY
This afternoon, Lieutenant Governor Molly Gray released the following statement on the Administration’s proposed Voluntary Paid Family and Medical Leave Insurance (“FMLI”) Program:
“Throughout my term as Lieutenant Governor, I’ve heard from Vermont working families struggling to balance caregiving and paying the bills. As one of the oldest states in the nation, with a growing aging population, we see unpaid caregivers, often times women, stepping in to care for sick parents or loved ones when crisis strikes.
In fact, during the pandemic Vermont labor data showed a disproportionate number of women leaving the workforce all together.
There is a generation of Vermonters who continue to find themselves as the sandwich generation – caring for aging parents and children at the same time.
The Administration’s Paid Family and Medical Leave Insurance program announced today fails to address the need and circumstances of Vermont workers and families.
First, the insurance program is voluntary which means that a worker must choose to enroll. A worker must either know they are preparing to start a family or anticipate a family crisis. The whole purpose of universal paid family and medical leave program is to support families through unexpected family emergencies. Workers should know in times of crisis Vermont employers have their back; workers should not be forced to make predictions.
Second, the insurance program provides 6 weeks of paid leave in a 12-week period to allow for the “birth of a child and to care for a newborn child during the first year of birth”. The expectation that a mother, or parent, would return to work after 6 weeks is regressive and arcane and not only ignores best medical advice, but is counter to the realities of childbirth and caregiving in the important first weeks of life.
Finally, the insurance program caps salary reimbursement at 60% of salary. At a time when a majority of Americans are living paycheck to paycheck and can’t afford an emergency expense of $400 or more, a suggested 60% salary reimbursement is naïve to the economic realities of working families.
Paid Family and Medical Leave isn’t a nice thing to have, it is a must have. All Vermont workers deserve a minimum of 12 weeks of paid family and medical leave. I strongly support the legislature in crafting and passing a plan that truly considers and addresses the realities facing caregivers, parents and working families in Vermont.”
The Lt. Governor will be co-hosting a Legislative Summit on Paid Family and Medical Leave this Thursday, December 8, 2022, at the Vermont State House. Learn more:
https://ltgov.vermont.gov/paidleavechildcaresummit
Republicans Applaud Gov. Scott's Voluntary Paid Family & Medical Leave Program
Montpelier, VT--Senate Minority Leader Randy Brock (R-Franklin) And House Minority Leader Pattie McCoy (R-Poultney) issued the following statement in response to Governor Scott's announcement of a voluntary paid family and medical leave program:
"Vermont Legislative Republicans applaud Gov. Scott for creating a voluntary paid family and medical leave program," said Sen. Brock. "More than three years ago, Gov. Scott proposed this innovative way to deliver a critical benefit to Vermonters, but the Legislature failed to give the Governor's plan its due consideration. Instead, the majority party advanced a controversial mandatory paid leave plan financed by payroll taxes that Vermonters simply could not afford. In fact, the mandatory paid leave plan would have created a $29 million new tax on workers that would have inevitably been increased in future years as costs accumulated, all while excluding thousands of part-time and other Vermonters from receiving the benefit. The Governor's proposal is clearly superior."
"After years of waiting, Vermonters will be able to voluntarily access this essential benefit if they so choose--without paying a new mandatory tax," added McCoy. "Not only will individuals be able to purchase coverage once the program is fully implemented, but businesses will be able to work with insurance providers to customize plans for their employees, helping to recruit more workers. Furthermore, this voluntary approach will avoid the headaches of administrative costs and IT systems that a state-run, mandatory program would entail."
"Finally, by using the state employee pool to anchor the program, Vermonters will be able to access these benefits at affordable rates," concluded Brock. "Vermont Legislative Republicans are eager for the program to launch, and thank Governor Scott and his administration for their hard work on this effort."
Democratic Party Releases Statement On Governor Phil Scott’s Voluntary Paid Family And Medical Leave Insurance Program
Montpelier, VT – Yesterday, Governor Phil Scott launched a voluntary paid family and medical leave insurance program that falls short of its goal to help working families where they need it most. It is unsurprising that this program fails to meet basic needs, as Governor Scott has proven time and again that his priorities lie in stopping Democrats from advancing their agenda rather than creating meaningful change for Vermonters.
Said Speaker Jill Krowinski, “We have long discussed the need for employees and businesses to have access to paid family and medical leave. The pandemic further highlighted the need for this resource as families struggled to balance their careers and taking care of themselves and their loved ones. I look forward to reviewing the details of the Governor’s program, but at first glance, it does not meet the needs of Vermonters in this moment.”
Said VDP Executive Director Jim Dandeeau, “Phil Scott has had six years to take meaningful action and the only time he’s taken even a doomed half measure is when Democrats have the ability to ignore him. He needs to come to the table and work with Democrats to find a viable solution for working parents and stop playing politics with Vermont families.”
The Vermont Democratic Party urges Governor Scott to meet with State House and Senate Democrats, who have been promoting paid family and leave for years, to ensure that this plan will realistically meet the needs of working families in Vermont.
December 6, 2022.
