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A Guide to Paid Family and Medical Leave

Background and Purpose

Many developed countries throughout the world have a national policy that provides some form of paid family and medical leave. Programs in different countries vary by number of weeks of benefit, events covered, eligibility requirements and other features. Many of these programs have been in place for a significant number of years and have evolved to better meet the needs of workers and ensure program financial stability.

In the U.S., the federal Family and Medical Leave Act (FMLA) was enacted in 1993 to provide up to 12 weeks of job-protected leave for certain family and medical reasons. Reasons for leave include a serious medical condition or to care for a newborn, a newly adopted child, or a seriously ill child, parent or spouse. However, FMLA does not include pay for the period of leave. As a result, many employees may be hesitant to use this time because of the significant economic burden that may result from lack of compensation during this period. It may also result in difficult choices of whether to attend fully to health needs or compromise on care.

Given this situation and with awareness of programs already well-established around the world, the concept of paid family and medical leave (PFML) has gained increased interest in the U.S. in recent years. Several U.S. states have adopted PFML programs, but clearly the implementation of PFML programs in the U.S. significantly lags behind that of other countries.

With this in mind, the Society of Actuaries International Section, and Social Insurance and Public Finance Section (sponsors) have partnered to develop a resource guide on Paid Family and Medical Leave programs that assesses best practices and actuarial considerations. The focus of the resource guide is to analyze and document the experience of countries throughout the world and lessons that can learned for current programs both globally and in U.S. as well as those that are being contemplated.

Research Objective

The sponsors of this research effort are seeking researchers to develop a guide to Paid Family and Medical Leave programs around the world and lessons that may be learned for governments (including U.S. states and governmental agencies) interested in these programs. Note that the guide is intended to be informative, without taking a position on the relative merits of specific programs nor implying an endorsement of any kind.

The following are topics and information that should be covered by the guide:

International Considerations

  • What are at least 10 representative countries that illustrate the spectrum of programs that exist around the world and why?
  • What are the features of programs that have been adopted in representative countries around the world?
  • What are the most and least common features of such non-U.S. country programs?
  • What features have been considered most important and least important, and how does that vary by stakeholder (workers, companies, regulators, taxpayers, etc.)?

U.S. Considerations

  • What are the most and least common features of such programs?
  • How do existing U.S. programs compare to those of other countries?
  • Which programs in other countries have most informed state and other programs that currently exist in the U.S.?

The format of the guide is intended to present data as much as possible, with easy to grasp visualizations and illustrations.

Actuarial Considerations

  • How is funding determined?
  • How are reserves are established to ensure long term financial viability? What actuarial principles, if any, are used to develop reserves and other financial considerations?
  • How are applications for benefits made?
  • Who is eligible for benefits?
  • What mechanisms are in place to combat fraud and abuse?
  • How has the experience with these programs varied by governmental entity and length of time since establishment?
  • How does Paid Family Leave coordinate with and/or replace Short Term Disability?

Proposal Requirements

To facilitate the evaluation of proposals, the following information should be submitted:

  1. Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
  2. An outline of the approach to be used (e.g. literature search, model, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
  3. A description of the expected deliverables and any supporting data, tools or other resources.
  4. Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
  5. A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The sponsors are interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely delivery, such as fee adjustments, are encouraged.
  6. Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

Selection Process

The sponsors will appoint a Project Oversight Group (POG) to oversee the project and will be responsible for recommending the proposal to be funded. Input from other knowledgeable individuals may also be sought, but the sponsors will make the final recommendation, subject to Society of Actuaries Research Institute (SOA) leadership approval. An SOA staff research actuary will provide staff actuarial support.

Questions

Any questions regarding this RFP should be directed to Steven Siegel, Senior Practice Research Actuary at ssiegel@soa.org or +1-847-706-3578.

Notification of Intent to submit Proposal

If you intend to submit a proposal, please email written notification by May 10, 2022 to Barbara Scott at bscott@soa.org.

Submission of Proposal

Please email your proposal to Barbara Scott at bscott@soa.org; proposals must be received no later than May 21, 2022. It is anticipated that all proposers will be informed of the status of their proposal by the end of June 2022.

Conditions

The selection of a proposal is conditioned upon and not considered final until a Letter of Agreement is executed by both the Society of Actuaries Research Institute and the researcher.

The Society of Actuaries Research Institute reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The Society of Actuaries Research Institute also reserves the right to redirect the project as is deemed advisable.

The Society of Actuaries Research Institute plans to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s). The Society of Actuaries Research Institute may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the Society of Actuaries Research Institute in publicizing or promoting the research and responding to media requests.

The Society of Actuaries Research Institute may also choose to market and promote the research to members, candidates and other interested parties. You agree to perform promotional communication requested by the Society of Actuaries Research Institute, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.