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<br />From:
<br />~Oate:
<br />qubject:
<br />
<br />I CABARRIJS
<br />
<br />N6RTH CAROLINA
<br />
<br />MEMORANDUM
<br />
<br />Board of Commissioners
<br />Blair Bennett ,~
<br />September 7, 1999
<br />
<br />Status Report on Workers' Compensation Fund
<br />
<br /> The decision was made beginning July 1, 1994 to become self-insured for Workers' Compensation. The sharp
<br /> ncreases in insurance premiums for Workers' Compensation and the moderate claims history we had experienced
<br /> were the factors leading us to make the decision to become self-insured. This decision was not taken lightly, realizing
<br /> 'nat becoming self-insured carried a liability risk to the County. However, considering all these factors, we did elect
<br />_.) become self-insured. This year again, the risk/reward scenario had a positive outcome, as evidenced in the below
<br />:ompilation:
<br />
<br /> .evenue Received:
<br />-~evenues received from departments
<br /> ' ~terest earned on workers'
<br /> ampensation fund
<br />
<br /> Total Revenue
<br />
<br /> 1995 1996 1997 1998 1999 Inception to Date
<br />$ 383,353.51 $ 323,968.02 $ 351,609.57 $ 367,894.00 $ 392,018.20 $ 1,818,843.30
<br />
<br /> 9,892.34 24,332.33 36,920.37 59,674.24 56.466.47 187,285.75
<br /> 393,245.85 348,300.35 388,529.94 427,568.24 448,484.67 2.006,129.05
<br />
<br />xpenditures Incurred:
<br />Claim administration and consultant 9,500.00 14,000.00 14,000.00 14,000.00 10,000.00 61,500.00
<br />?xcess insurance purchased 37,100.00 45,718.00 41,909.00 37,337.00 30,916.00 192,980.00
<br />laims paid 116,819.80 61,374.41 70,558.94 149,117.10 66,408.94 464,279.19
<br />~laim reserves 0.00 0.00 0.00 0.00 0.00 70,514. } 2
<br />~otal expenditures 163,419.80 121,092.41 126,467.94 200,454.10 107,324.94 789,273.31
<br />
<br />Savings Cabarrus County Workers'
<br />%mpensation Fund
<br />
<br />$ 229,826.05 $ 227,207.94 $ 262,062.00 $ 227,114.14 $ 341,159.73 $ 1,216,855.74
<br />
<br />-For the fiscal year we actually paid out $204,972.38 in claims. These payments were allocated back to the particular
<br />· 'ear in which the claim actually occurred. Those allocations were as follows: 1995 - $655.14, 1996 - $29,209.83,
<br />,?97 - $31.47, 1998 - $108,666.86 and 1999 - $66,408.94. After seven years of experience with the self funding
<br />program, we should consider having an actuary study done to help us determine the cash reserve needed to fully fund
<br />-'tis program.
<br />
<br />-~ompensations Claims Solutions, our claims administrator, located here in Concord, has done an excellent job of
<br /> :tively working and monitoring the claims to return injured employees back to work as quickly as possible. We will
<br />?ntinue to monitor this fund and its claims closely, and hope that its success will continue.
<br />
<br />-- Finance Department
<br /> PO. Box 707 · Concord, NC 28026-0707 * (704) 788-8~,04
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