OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-222
AN ACT CONCERNING CHANGES TO THE PAID FAMILY AND
MEDICAL LEAVE STATUTES.
Primary Analyst: CR 3/19/24
Contributing Analyst(s): LG, WL, JP, BP, CW
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Paid Family and Medical Leave
Insurance Authority
PLCTF - Potential
Cost
See Below See Below
Paid Family and Medical Leave
Insurance Authority
PLCTF - Potential
Revenue Gain
See Below See Below
Judicial Dept. (Office of Victim
Services)
CICF - Potential
Savings
See Below See Below
Note: PLCTF=CT Paid Leave Contribution Trust Fund; CICF=Criminal Injuries Compensation Fund
Municipal Impact: None
Explanation
The bill, which makes several technical and operational changes to
the Paid Family and Medical Leave statutes, has a fiscal impact on the
Paid Leave Contribution Trust Fund (PLCTF) as outlined below.
Sections 1 and 6, which allow any federally recognized tribe in the
state to opt into the program after executing a memorandum of
understanding with the Governor, does not result in a fiscal impact on
the PLCTF to the extent that this potential expansion would mirror the
expenditure and revenue trends of the existing program.
Section 2, which explicitly requires employers to register with and
submit reports to the Authority and subjects them to penalties due to
noncompliance, does not result in a fiscal impact as the Authority
already imposes penalties for noncompliance. 2024SB-00222-R000075-FN.docx Page 2 of 2
Section 2 also allows claimants covered under Paid Family and
Medical Leave Insurance (PFMLI) to receive compensation from the
Office of Victim Services (OVS) concurrently, which results in a
potential savings to the Criminal Injuries Compensation Fund (CICF).
Total payments to claimants are limited to their normal wages; PFMLI
is the primary payor which reduces the compensation for lost wages
that OVS may issue to a claimant from the CICF.
1
This also results in a
potential minimal cost to PLCTF to the extent these benefits are paid.
Section 3, which requires the Authority to develop or approve an
informational poster for display in health care sites, does not result in a
fiscal impact as this can be accomplished using current resources.
Section 4, which allows the Authority to impose penalties on
individuals attempting to willfully misrepresent information to receive
benefits, results in a potential positive impact to the trust fund to the
extent that penalties are paid and fraud deterred.
2
Section 4 also subjects anyone who fails to make required repayments
to a 1% per month interest rate on the amount owed.
3
This results in a
potential revenue gain to the trust fund to the extent this increases
individual repayments or results in interest payments being made. To
date, the Authority has identified approximately $5.8 million in
overpaid benefits, of which 81% was recovered.
The Out Years
The annualized ongoing fiscal impacts identified above would
continue into the future subject to inflation.
1
In FY 23, there were approximately 1.5 million individuals covered by PFMLI. OVS
paid an average of $257,200 annually in lost wages from FY 18 - FY 23.
2
Since January 2022, the Authority has identified between 350 and 400 instances of
willful misrepresentation or attempted fraud.
3
The bill allows the Authority to recover such amounts and interest owed through a
wage execution or by asking the administrative services commissioner to seek
reimbursement through an income tax refund withholding.