Council approves Madison National Life contract to administer paid family/medical leave
October 30, 2025 | Virginia City, St. Louis County, Minnesota
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HR staff and consultants told council the $0.77-per-payroll-dollar rate produced an estimated 2026 administration cost of about $76,000 based on current census numbers; the fee is charged against payroll. HR said the city could opt to pass up to 50% of the administrative cost to employees in accordance with state rules, subject to negotiations and memoranda of understanding.
Council discussion focused on whether the program should be kept in-house for a trial period or outsourced immediately. Councilor Bach Schneider said she preferred an in-house start to avoid unknown long-term costs; Councilor Johnson argued for outsourcing to free staff time for other duties. The council approved the Madison National Life contract on a 5–2 vote.
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