| 39 | | - | [ paid family and medical leave - third-party actuary |
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| 40 | | - | - report - collaboration - timeline for |
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| 41 | | - | implementation - actuary study - promulgation of |
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| 42 | | - | rules - codification - effective date ] |
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| 63 | + | AS INTRODUCED |
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| 64 | + | |
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| 65 | + | An Act relating to paid family and medical leave; |
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| 66 | + | authorizing the Department of Labor to contract with |
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| 67 | + | a qualified third-party actuary for certain purpose; |
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| 68 | + | stating purpose; providing for contents of actuarial |
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| 69 | + | report; defining term; requiring third-party actuary |
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| 70 | + | to model and compare certain conditions for report; |
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| 71 | + | allowing for collaboration with certain groups to |
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| 72 | + | identify certain conditions for the report; requiring |
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| 73 | + | qualified third-party actuary to establish timeline |
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| 74 | + | for implementation based on certain conditions; |
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| 75 | + | specifying that the actuary study shall follow |
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| 76 | + | certain guidelines; providing for promulgation of |
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| 77 | + | rules; providing for codification ; and providing an |
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| 78 | + | effective date. |
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| 43 | 79 | | |
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| 44 | 80 | | |
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| 45 | 81 | | |
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| 46 | 82 | | |
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| 47 | 83 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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| 48 | 84 | | SECTION 1. NEW LAW A new section of law to be codified |
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| 49 | 85 | | in the Oklahoma Statutes as Section 950 of Title 40, unless there is |
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| 50 | 86 | | created a duplication in numbering, reads as follows: |
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| 51 | 87 | | A. By January 1, 2027, the Dep artment of Labor shall contract |
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| 52 | 88 | | for the services of a qualified third -party actuary to perform an |
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| 53 | 89 | | actuarial study for a paid family and medical leave insurance |
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| 54 | 90 | | program in this state including, but not limited to, the startup |
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| 55 | 91 | | costs of the program, costs for the state to administer the program, |
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| 56 | | - | outreach and education costs, the premium contributions necessary to |
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| 57 | | - | maintain the solvency of the program for a period of five (5) to ten |
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| 58 | | - | (10) years, potential trends in cl aim experience over time, and |
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| 59 | | - | total annual revenues, expenditures , and reserves. The actuarial |
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| 60 | | - | study shall be completed and shared with the public no later than |
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| 61 | | - | thirty (30) days after the completion of the study. Through |
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| 143 | + | outreach and education costs, the premium contributions necessary to |
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| 144 | + | maintain the solvency of the program for a period of five (5) to ten |
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| 145 | + | (10) years, potential trends in claim experience over time, and |
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| 146 | + | total annual revenues, expenditures, and reserves. The actuarial |
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| 147 | + | study shall be completed and shared with the public no later than |
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| 148 | + | thirty (30) days after the completion of the study. Through |
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| 89 | 149 | | utilization of relevant data including, but not limited to, other |
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| 90 | 150 | | state paid family and medical leave insurance programs, short -term |
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| 91 | 151 | | disability claims, family and medical leave data from the federal |
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| 92 | 152 | | government, and a review of the experience, structure, and policy |
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| 93 | 153 | | design of other state paid family and medical leave programs, the |
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| 94 | 154 | | actuarial study shall consider the following program parameters as |
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| 95 | 155 | | they relate to the premiums necessary to maintain solvency: |
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| 96 | 156 | | 1. The purposes for which paid family and medical leav e can be |
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| 97 | 157 | | used including, but not limited to , bonding with a new child, caring |
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| 98 | 158 | | for a family member with a serious health condition, recovering from |
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| 99 | 159 | | a serious health condition, addressing medical and nonmedical needs |
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| 100 | 160 | | arising from domestic violence and sexual assault, and addressing |
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| 101 | 161 | | military family and caregiving needs related to a family member’s |
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| 102 | 162 | | deployment; |
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| 103 | 163 | | 2. Coverage of all public, private , and nonprofit sector |
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| 104 | 164 | | employees in this state within the scope of the paid family and |
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| 105 | 165 | | medical leave insurance program ’s rights and protections including, |
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| 106 | 166 | | but not limited to, a breakdown of requirement coverage of employees |
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| 139 | 223 | | 4. The eligibility standard for workers to qualify for paid |
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| 140 | 224 | | family and medical leave benefits including, but not limited to, |
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| 141 | 225 | | earnings requirements, minimum hours worked , other such earnings, |
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| 142 | 226 | | and work history metrics; |
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| 143 | 227 | | 5. Utilization of an inclusive family definition to afford |
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| 144 | 228 | | workers the right to take paid family and medical leave to care for |
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| 145 | 229 | | immediate members of the family , regardless of legal or biological |
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| 146 | 230 | | relation; |
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| 147 | 231 | | 6. Use of a social insurance model for the paid family and |
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| 148 | 232 | | medical leave insuran ce program wherein workers and employers share |
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| 149 | 233 | | the premium costs of the program including, but not limited to: |
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| 150 | 234 | | a. exempt the smallest employers from contributing to the |
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| 151 | 235 | | program while still including their employees within |
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| 152 | 236 | | the scope of the program, |
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| 153 | 237 | | b. exempt self-employed workers who opt into the program |
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| 154 | 238 | | from contributing the employer portion of premium |
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| 155 | 239 | | costs to the program, and |
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| 156 | 240 | | c. limit premium contributions to wages not exceeding the |
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| 157 | 241 | | contribution and benefit base limit established |
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| 189 | 297 | | 7. Utilization of a graduated wage replacement rate that |
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| 190 | 298 | | ensures that low-wage workers receive a higher wage replacement |
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| 191 | 299 | | level and can afford to take paid family and medical leave, as |
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| 192 | 300 | | compared to a flat rate of wage replacement; |
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| 193 | 301 | | 8. Inclusion of an equitable maximum weekly benef it rate that |
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| 194 | 302 | | adjusts annually based on the statewide average weekly wage and |
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| 195 | 303 | | ensures that workers can afford to take paid family and medical |
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| 196 | 304 | | leave; |
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| 197 | 305 | | 9. A maximum leave duration, not below twelve (12) weeks of |
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| 198 | 306 | | leave per year; |
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| 199 | 307 | | 10. Inclusion of an unpaid wai ting period during which workers |
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| 200 | 308 | | do not receive paid family and medical leave wage replacement |
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| 201 | 309 | | benefits not to exceed the first seven (7) calendar days of one ’s |
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| 202 | 310 | | leave, as compared to the lack of any such waiting period; |
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| 203 | 311 | | 11. A right to reinstatement for al l employees upon returning |
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| 204 | 312 | | from a period of paid family and medical leave, and its effect on |
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| 205 | 313 | | program usage; and |
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| 206 | 314 | | 12. Based on information provided by this state and in |
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| 207 | 315 | | partnership with this state, the estimated administrative costs to |
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| 208 | 316 | | the state for impleme nting and administering the paid family and |
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| 239 | 371 | | B. As used in this section, “qualified third-party actuary” |
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| 240 | 372 | | means an actuary who is not employed by this state and who meets the |
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| 241 | 373 | | qualification standa rds for the American Academy of Actuaries for |
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| 242 | 374 | | the scope of the actuary requested in this section. |
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| 243 | 375 | | C. The qualified third -party actuary shall model and compare |
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| 244 | 376 | | the costs including, but not limited to, the premium rates necessary |
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| 245 | 377 | | to achieve solvency, of at least two different paid family and |
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| 246 | 378 | | medical leave insurance program models based on the policy |
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| 247 | 379 | | parameters provided in subsection A of this section. Beyond the |
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| 248 | 380 | | initial startup years in which benefits are paid out, the reserves |
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| 249 | 381 | | accounted for pursuant to sub section A of this section shall be |
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| 250 | 382 | | approximately one hundred thirty -five percent (135%) of the benefits |
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| 251 | 383 | | paid during the previous fiscal year plus an amount equal to one |
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| 252 | 384 | | hundred percent (100%) of the cost of administration of the payment |
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| 253 | 385 | | of those benefits during the previous fiscal year, less the amount |
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| 254 | 386 | | of net assets remaining with the paid family and medical leave |
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| 255 | 387 | | insurance programs at the end of the previous fiscal year. |
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| 256 | 388 | | D. The qualified third-party actuary shall utilize data that is |
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| 257 | 389 | | relevant to this stat e, such as workforce and demographic data about |
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| 258 | 390 | | the population of this state, as may be required to perform an |
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| 259 | 391 | | actuarial study pursuant to subsection A of this section. |
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| 290 | 446 | | for each program that is modeled, with the model components based on |
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| 291 | 447 | | the paid family and medical insurance programs adopted in other |
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| 292 | 448 | | states. |
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| 293 | 449 | | F. The qualified third-party actuary shall assess a timeline |
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| 294 | 450 | | that benefits the fiscal condition and preferred funding of a paid |
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| 295 | 451 | | family and medical insurance program for the state. |
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| 296 | 452 | | G. The actuarial study as detailed in this section shall be |
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| 297 | 453 | | completed in accordance with the relevant Actuarial Standards of |
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| 298 | 454 | | Practice promulgated by the Actuarial Standards Board. |
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| 299 | 455 | | H. The Department shall promulgate any rules necessary to |
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| 300 | 456 | | implement and administer the provisions of this section. |
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| 301 | 457 | | SECTION 2. This act shall become effective November 1, 2025. |
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