The RSU 40/MSAD 40 school board voted to approve use of a private insurance option for the state’s new paid family and medical leave program (PFML), with presenters saying the private plan would lower expected costs over a three‑year period.

Board packet materials and discussion at the meeting identified Guardian as the private insurer under consideration. A finance‑committee presenter said the district expects the PFML requirement to cost “between us and our employees around $650,000,” and that the private option would reduce that combined cost to approximately $409,000 over three years.

Why it matters: The district must participate in PFML. Choosing a private carrier requires a three‑year commitment and affects both employer and employee payroll deductions. District staff and board members framed the decision as a way to lower immediate costs and to use an insurer with experience administering benefit programs.

What the board heard: The presenter said the private option would defer the district’s immediate payment obligation for about 13 months and described administrative differences between the state program and private carriers. Board members asked whether employees would still share the premium costs; the presenter responded that employees would continue to pay roughly half the premium but that the district’s share would be lower under the private plan. The presenter said benefit access will open after a contribution period that begins January 1, 2025, and accumulates through May 2026 under the state timetable.

Board action: A motion to approve the private PFML insurance option was moved, seconded and carried. The meeting record shows the vote as announced at the meeting (transcript notes: “All in favor? Opposed? Abstentions? 8 20 1 to 0”). The board’s packet materials and comments state the district and employees would pay into the private plan via payroll processing rather than sending contributions directly to the state while the private contract is active.

Details and caveats: District staff said rates would be locked for the contract period and that the board would reassess when the contract ends. The presenter said there has been discussion at the state level about potential future changes to the program but no definitive action was reported at the meeting. The presenter also said the private option was expected to save the district money relative to the current estimate, characterizing the savings as occurring over the three‑year commitment period.

What’s next: The board’s approval commits the district to the private option for the contract term; staff said implementation details (payroll deduction timing and employee notification) will follow.