The Department of Financial Regulation has approved the Vermont Family and Medical Leave Insurance Plan (VT-FMLI) coverages and rates filed by The Hartford, a private insurance carrier who was selected to deliver and administer the program benefits, the Scott administration said today.
A House bill to pass universal, mandatory paid leave failed in the Legislature this year as House and Senate leaders opted instead to invest heavily in child care. The bill may return next year.
Phase 1 of the governor’s three-phased program goes into effect on July 1, 2023, when State employees are enrolled in the program.
“This is an important step as we move forward with Vermont’s innovative paid family and medical leave program,” said Governor Scott. “Within two years, every working Vermonter and employer will have access to this affordable program, without relying on a mandatory new tax. It truly will be a win-win.”
The benefits will provide up to six weeks of paid family and medical leave benefits at 60% of an employee’s average weekly wage for an employee’s own serious health condition, bonding with a child, or caring for family members. Employers could opt to expand upon this baseline benefit.
Upon completion of the Phase 1 implementation, the State will work closely with The Hartford to educate and promote Phase 2 (employer groups of two or more) of the program for a July 1, 2024 implementation. “The department expects to receive a product and rate filing for Phase 2 of the program later this year with a goal of approving those programs by year end 2023”, Gaffney added.
The voluntary nature of the program will allow Vermont employers to tailor a plan that suits their needs, the Scott administration.
More information of the Vermont Voluntary Paid Family Leave Program can be found by clicking here.