|
-- To:
<br /> From:
<br /> Date:
<br /> Subject:
<br />
<br />MEMORANDUM
<br />
<br />Board of Commissioners
<br />Blair Bennett ~
<br />
<br />July 21, 1998
<br />
<br />Status Report on Workers' Compensation Fund
<br />
<br />The decision was made beginning July I, 1994 to become self-insured for Workers' Compensation. The sharp
<br />increases 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,
<br />realizing that becoming self-insured carried a liability risk to the County. However, considering all these factors,
<br />we did elect to become self-insured. This year again, the risk/reward scenario had a positive outcome, as evidenced
<br />in the below compilation:
<br />
<br />Revenue Received:
<br />Revenues received from depa[tments
<br />Interest earned on workers'
<br />compensation fund
<br />Total Revenue
<br />
<br />1995 1996 1997 1998 Inception to Date
<br />$383,353.51 $323,968.02 $351,609.57 $367,894.00 $1,426,825.10
<br />
<br />9,892.34 24,332.33 36,920.37 59,674.24 130,819.28
<br />393,245.85 348,300.35 388,529.94 427,568.24 1,557,644.38
<br />
<br />_ Expenditures Incurred:
<br />Claim administration and consultant 9,500.00 14000.00 14000.00 14,000.00
<br />Excess insurance pumhased 37,100.00 45718.00 41909.00 37,337.00
<br />Claims paid 116,164.66 32,164.58 70,527.47 40,450.24
<br />-- Claim reserves -0- -0- ~0- -0-
<br />Total Expenditures
<br />
<br />162,764.66 91,882.58 126,436.47 91,787.24
<br />
<br />51,500.00
<br />162,064.00
<br />259306.95
<br />76J82.70
<br />549,753.65
<br />
<br />--Savings Caban-us County Workers' $230,481.19 $256,417.77 $262,093.47
<br /> Compensation Fund
<br />
<br />$311,610.05
<br />
<br />$1,007,890.73
<br />
<br />-- The results for the past year's are definitely much better than we could have ever expected. Our goal originally was
<br /> to reach a fund level of $1 million in cash reserves in a period of 6 to 7 years; however, the success of the program
<br /> has been such that we have reached that goal in 4 years. I will probably wait one more year and then have an
<br /> actuary study done to help us determine the cash reserve needed to fully fund this program.
<br />
<br />Compensations Claims Solutions, our claims administrator, located here in Concord, has done an excellent job of
<br />actively working and monitoring the claims to return injured employees back to work as quickly as possible. We
<br />will continue to monitor this fund and its claims closely, and hope that its success will continue.
<br />
<br />Finance Department
<br />
<br />
<br />
|