(303) 369-3200

Wednesday, 04 January 2023 15:09

Rule Changes Released for CO Paid Family Medical Leave (PFML)

Written by Kristen Russell
Rate this item
(0 votes)

The Colorado Department of Labor and Employment (CDLE) released finalized private plan rules for PFML in October. Here are the major updates and changes:

  • The administration fee for receiving private plan approval is now $500, rather than the previously higher amount of $1200.
  • There is now an annual maintenance fee for offering a private plan, based on the CDLE’s prior year administrative costs for administering that employer’s private plan. The amount and due date are determined by the CDLE. As an example, making changes will increase your maintenance fee.
  • Employers must pay FAMLI premiums to the CDLE until their private plan is effective, not approved.
  • Private plans are approved for 8 years (not 2 years), unless materially changed or a new carrier is chosen.
  • There will be an annual attestation that the plan continues to satisfy all FAMLI requirements If an employer moves from a private plan to the state plan, they must stay on the state plan for the following 3 years. This seems to be replacing the one-year retroactive premium payment rule for transitioning to the state plan. The Required 2023 FAMLI Program Notice poster is available to download from the FAMLI website.
  • Coordination of Benefit rules (how PFML will interact with PTO, STD/LTD, FMLA, Workers Comp, etc.) have been adopted.
    • The key takeaway is that PTO can be used to top-off PFML benefits only if the employee and employer have mutually agreed to allow this in writing.
    • Medical, dental, and vision benefits must continue while on PFML.
  • Taxation has been clarified:
    • Premium deductions are considered post-tax deductions
    • Deductions should be reported in W2s under Box 14
    • PFML benefit payments are not taxable by Colorado, but federal taxation is undetermined at this time
Read 365 times Last modified on Wednesday, 04 January 2023 15:57