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ICABARRUS COUNITI <br /> #OR|if CAiigLINA <br /> <br />To: <br />From: <br />Date: <br />Subject: <br /> <br />Board of Commissioners <br /> <br />Blair Bennett /~'/2a'~ <br /> <br />July 15, 1996 <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 />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, we <br />did elect to become self-insured. This year again, the risk/reward scenario had a positive outcome, as evidenced in <br />the below compilation: <br /> <br />Revenue Received: <br />Revenues received from departments <br />Interest earned on workers' compensation fund <br />Total Revenue <br /> <br />Expenditures Incurred: <br />Claim administration and consultant <br />Excess insurance purchased <br />Claims incurred <br />Claim reserves <br />Total Expenditures <br /> <br />Savings Cabarrus County Workers' Compensation Fund <br /> <br />1995 1996 Inception to Date <br />$383,353.51 $323,968.02 $707,321.53 <br />9,892.34 24,332.33 34,224.67 <br />393,245.85 348,300.35 741,546.20 <br /> <br />9,500.00 14,000.00 23,500.00 <br />37,100.00 45,718.00 82,818.00 <br />96,819.24 17,364.69 114,183.93 <br />-0: 16,266.14 16,266.14 <br />143,419.24 93,348.83 236,768.07 <br /> <br />$249,826.61 <br /> <br />$254,951.52 <br /> <br />$504,778.13 <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. 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' compensation <br />in departmental budgets, thereby eliminating nearly $350,000 in annual appropriations required through the budget <br />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 will <br />continue to monitor this fund and its claims closely, and hope that its success will continue. <br /> <br /> Finance Department <br />P.O. Box 707 · Concord, NC 28026-0707 · (704) 788-8104 <br /> <br /> <br />