Yes, Sun Life intends to offer both fully insured and self-insured private plan administration for employers.
Effective January 1, 2026, most employers are required to provide Paid Family and Medical Leave to their employees who work in the state of Minnesota. The MN PFML program is designed to provide employees with the financial support they need during critical life events, such as the birth or adoption of a child, serious illness, or caring for a family member with a serious health condition.
Coverage options: Employers can meet their PFML obligation through a state-run program or by offering a private plan.
Sun Life Solutions: Sun Life offers solutions to meet your PFML needs, including the choice of a fully insured plan or a self-insured plan option.
Employers who choose private plan administration through Sun Life receive:
- A coordinated experience between PFML, Short-Term Disability and Absence Management Solutions, if applicable. This leads to a better experience for employees, with one claim submission and a single case manager handling the claim for these benefits
- Robust reporting
- Excellent claims management and access to return to work services
- Compliance guidance on PFML and other leave updates
Key dates
- October 31, 2024 - Minnesota employers must submit their first employee wage detail report
- December 2025 - Minnesota employers must notify their employees about the program
- January 1, 2026 - Premium contributions and benefits begin
- April 30, 2026 - First quarter premiums due from Minnesota employers
Frequently asked questions
Yes. While the MN PFML law creates certain paid benefits for leave because of an employee’s own health condition or for covered caregiving reasons, the MN PFML law is not intended to replace benefits provided by employers through Short Term Disability (STD) plans and programs. It is important to know that cancelling STD benefits could leave your employees with a gap in coverage:
- Benefit amount for higher-income employees. The MN PFML max weekly benefit may be insufficient for high-income earners who require greater income replacement.
- Consequences of combined 20 weeks of family and medical leave. If an employee takes 12 weeks of family leave in a 12-month period, the employee will have limited time available for absence due to their own serious health condition
- Impact of intermittent leave. MN PFML can be taken intermittently so an employee may substantially reduce and/or exhaust their benefits and be left without income replacement protection if they become continuously disabled thereafter.
- STD may offer additional features and benefits. STD policies may include employee-facing features that improve their experience: first-day hospitalization, survivor benefits, and most important, return-to-work and vocational rehabilitation programs. Employees can only access these features if they are approved for STD benefits.
Additional information will be provided when available from the state.
Program highlights
Plan Name |
Paid Family and Medical Leave (PFML) |
|---|---|
Year benefits begin |
January 1, 2026 (Contributions also begin January 1, 2026) |
Coverage options |
Private plan, State plan |
Types of private plans allowed |
Fully Insured, Self-Insured (Sun Life offers administrative support for both) |
Employers covered |
All employers with one or more employees working in the state |
Employee eligibility requirements |
While working in MN, have earned at least 5.3% of the state’s average annual wage during the most recent 4 completed calendar quarters |
Elimination period |
There is no elimination period for bonding. Other leaves reasons have a seven-day qualifying event requirement, and following the seven-day period, the initial week of leave is retroactively payable. |
Reasons for leave |
|
Benefit duration |
|
Benefit calculation |
MN PFML uses a three-tiered benefit schedule. Employees are entitled to receive benefits equal to:
The maximum weekly benefit amount will equal the state's average weekly wage which is calculated on or before June 30 of each year. |
Maximum weekly benefit |
100% of the SAWW |
Minimum weekly benefit |
N/A |
Social Security wage cap |
2025: $176,100 |
Maximum employee contributions |
50% of premium on wages |
Employer contributions |
Shared 50/50 with the employee, or the employer may elect to pay all or any portion of the employee’s share of contributions. The total contribution rate is 0.70% up to the Social Security wage cap, with employers and employees each responsible for .35%. For employers with fewer than 30 employees, the amount of wages upon which quarterly employer premium is required is reduced. |
Post-employment period of coverage |
26 weeks post-employment |
State resource |
Questions?
Contact your Sun Life Employee Benefits Representative or your benefits broker to learn more.
The information on this page is based on our knowledge of the current PFML law and regulations. Content subject to change. This page is not intended to be and should not be construed as legal advice. Employers are encouraged to consult employment law counsel for legal advice.
When available, Sun Life’s fully insured MN PFML policies will be issued by Sun Life Assurance Company of Canada (SLOC) (Wellesley Hills, MA). When available, Sun Life’s self-insured or administrative-services-only MN PFML service will be administered by Sun Life Assurance Company of Canada (Wellesley Hills, MA). This service is not insurance.
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PFMLWC-2198 #1506077856 10/24 (exp. 10/26)