While the actual start of CO Paid Family & Medical Leave Insurance (FAMLI) in January 2024 may seem far away, rules surrounding the program are being finalized, and employers need to take action well before the launch, such as registering on the FAMLI portal, making employee pre-funding contributions to the state in 2023, and/or deciding whether to provide this new required coverage through the state plan or an approved private plan. A private plan can be in the form of self-insurance or fully-insured through an insurance carrier.
To give both employers and the industry time to gear up with regard to private plan options, Colorado’s Division of Family & Medical Leave Insurance officially adopted the final version of rules regarding private plans on November 1, 2022.
CO FAMLI Key Requirements for Employers in 2023:
- All Colorado employers who have to provide Family & Medical Leave Insurance coverage must register with the FAMLI Division’s online portal called MyFAMLI+ Employer. A link will be provided once it’s available.
- Employers need to collect employee contributions for the state starting in January 2023. Employers cannot retroactively collect contributions from employees.
- Employers must remit the collected pre-funding contributions to the state at the end of each quarter.
Highlights From the Final CO FAMLI Private Plan Rules:
- Employers who plan to provide FAMLI benefits through an approved private plan must obtain a private plan approval from the FAMLI Division:
- When applying for a fully insured private plan approval, employers must submit a copy of their carrier’s DOI-approved insurance policy form, as well as a copy of the posted notice to employees.
- The FAMLI Division assesses a $500 administrative fee for an initial private plan application received in 2023 and 2024, regardless of whether the private plan is fully insured or self-insured. The amount for 2025 will be determined at a later time and published on the FAMLI website.
- If an employer files their private plan application with the FAMLI Division by October 31, 2023, the employer may be eligible for a refund of 2023 premiums remitted to the state as a result of their private plan going into effect 1/1/24. They may apply to the FAMLI Division for the refund, which the Division will then issue to the employer (minus the administration fee) within 90 days.
- Please note: If the private plan will be provided by an insurance carrier, premiums will then be due to the carrier for coverage beginning on the effective date.
- Once an approved private plan is in effect, the employer is not required to submit premiums or wage reports to the FAMLI Division but must maintain internal records and submit quarterly reports for the first three years of an approved plan.
- To ensure a private plan approval goes into effect for January 1, 2024, the application must be completed in the FAMLI+ Employer Portal by October 31, 2023.
- Private plan applications will still be accepted after October 31, 2023; however, they are not eligible for premium refunds and may go into effect after 1/1/24. Approved private plans must take effect at least 60 days after the date the application is filed so that the Division has sufficient time to review the application and the employer has sufficient time to provide the required notice to employees.
- Starting in the first quarter of 2025, the FAMLI Division will require a maintenance fee, which it will set and adjust annually. This fee will be based on the costs associated with administering the private plan in the prior year.
- Employers must provide written notice to all their employees at least 30 days before the effective date of an approved private plan.
- Once a private plan application is approved, it’s valid for 8 years.
Brokers: Why Offer a Private Plan to Your Clients?
Check out our Broker’s Guide to Private Plan Options for an in-depth overview on the advantages of private plans and why they may be the right fit for your clients.
Our Paid Family & Medical Leave (PFML/FAMLI) Sales Team is here to help! Reach out to them anytime at: pfmlsales@shelterpoint.com
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This blog post is for informational purposes only and is not an offer of coverage or intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any information is based on the applicable statutes and regulations and may change as regulations evolve or Colorado issues guidance regarding its paid Family & Medical Leave Insurance (FAMLI) regulations.
*The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a NY-domiciled carrier (principal office in Garden City, NY), and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.