Annual Adjustments in Family Leave Insurance Contribution Rates

On January 14, 2010, a bill (S3065) was signed into law (P.L.2009, c.195) which provides for annual adjustments in the employee contribution rates for family leave insurance beginning in 2011. The annual rate of contribution to be paid by employees into the “Family Temporary Disability Leave Account” will be the rate necessary to obtain total contributions equal to 125% of the benefits payable for family leave benefits during the prior calendar year plus 100% of the amount necessary to administer the benefits during the prior year, less the amount of net assets remaining in the account at the end of the immediately preceding year. If total contributions substantially exceed total benefits, the provisions of this bill would cause a reduction in contribution rates. Any employee with more than one employer would be entitled to a refund if the worker’s combined contribution for all employers exceeds the family leave contribution rate set by law.