January finance update: contributions and benefits drive near-term variance; staff projects fund near $570 million at year end

Finance staff presented January 2026 operating and contribution results and updated year-end projections for the CT Paid Leave program.

The presenter said operating results produced a positive variance of roughly $329,000 for the month, driven in part by timing (a software license payment shifted to a later month). January contribution activity was about $61.2 million; the presenter said the authority received roughly $111.2 million in fourth-quarter contributions, which helped produce a month-over-month positive variance. Average weekly benefit payments were reported near $9.2 million for January (five-week measurement).

Investment income for the month trailed budget expectations because short-term investment returns averaged about 3.73% versus a 4.1% budget assumption. Year-to-date activity including a redesignation transfer was roughly negative $9.7 million, and staff reported a year-to-date contributions total near $488.1 million. Finance staff revised the fiscal-year projection, expecting roughly a negative $12.7 million of net activity for the year and projecting the fund to be north of $570 million by June 30, 2026.

Board members asked for confirmation of the prior fiscal-year ending balance (about $582 million) and that the projection would finish the year close to $570 million; staff confirmed. The presenter said most drivers of the variance are higher benefit paid activity and seasonality in contributions; no new policy action was taken during the meeting.