Laserfiche WebLink
MEMORANDUM <br /> <br />To: <br /> <br />Board of Commissioners <br /> <br />From: Blair Bennett <br /> <br />Date: July 13, 1995 <br /> <br />Subject: Status Report on Workers' Compensation Fund <br /> <br />The decision was made beginning last fiscal year 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, 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 />$383,353.51 <br />. 9,892.34 <br /> 393,245.85 <br /> <br />Expenditures Incurred: <br />Claim administration and consultant <br />Excess Insurance purchased <br />Claims incurred <br />Total Expenditures <br /> <br />9,500.00 <br />37,100.00 <br />70,694.70 <br />117,294.70 <br /> <br />Net first year savings Cabarrus County Workers' Compensation Fund <br /> <br />$275,951.15 <br /> <br />The first year's results are definitely much better than we could have ever expected. Our goal is to reach a fund <br />level of $1 million in cash reserves in a period of 6 to 7 years. At that time, we could eliminate the funding of <br />workers' compensation in departmental budgets, thereby eliminating nearly $400,000 in annual appropriations <br />required through the budget process. <br /> <br />Lost Time Control, our claims administrator, located here in Concord, has done an excellent job of actively <br />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 /> <br />P.O Box 707 · Concord, NC 28026 0707 · (704) 788-8104 <br /> <br /> <br />