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To:
<br />
<br />From:
<br />
<br />Date:
<br />
<br />Subject:
<br />
<br />IORTIt CAROl. INA
<br />
<br />MEMORANDUM
<br />
<br />Board of Commissioners
<br />
<br />Blair Bennett
<br />
<br />July 16, 1997
<br />
<br />Status Report on Workers' Compensation Fund
<br />
<br />The decision was made beginning Suly l, 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 departments
<br />Interest earned on workers'
<br />compensation fund
<br />Total Revenue
<br />
<br />1995 1996 1997
<br />$383,353.51 $323,968.02 $351,609.57
<br />
<br />Inception to Date
<br /> $1,058,931.10
<br />
<br />9.892,34 ~ 36.920.37 71.145.04
<br />393,245.85 348,300.35 388,529.94 1,130,076.14
<br />
<br />Expenditures Incurred:
<br />Claim administration and consultant
<br />Excess insurance purchased
<br />Claims incurred
<br />Claim reserves
<br />Total Expenditures
<br />
<br />9,500.00 14,000.00 14,000.00 37,500.00
<br />37,100.00 45,718.00 41,909.00 124,727.00
<br />96,819.24 17,364.69 63,733.86 177,917.79
<br />-O- -O- 78.027.24 ~
<br />143,419.24 77,082.69 197,670.10 418,172.03
<br />
<br />Savings Cabarrus County Workers'
<br />Compensation Fund
<br />
<br />$249,826.61 $271,217.66 $190,859.84
<br />
<br />$711,904.11
<br />
<br />The results for the past year's are definitely much better than we could have ever expected. Our goal originally ~vas
<br />to reach a fund level of $ I million in cash reserves in a period of 6 to 7 years. At the current pace and with some
<br />luck, we could reach the goal within 5 years. At that time, we could eliminate the funding of workers'
<br />compensation in departmental budgets, thereby eliminating nearly $350,000 in annual appropriations required
<br />through the budget process.
<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 />P.O. Box 707 · Concord, NC 28026-0707 · (704) 788-8104
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