Presentation on theme: "1 Our results: actuarial trends In conjunction with the annual renewal of the self-insurance status, the District contracts with an actuary to conduct."— Presentation transcript:
1 Our results: actuarial trends In conjunction with the annual renewal of the self-insurance status, the District contracts with an actuary to conduct a valuation of outstanding workers compensation claims as of June 30. The August 2007 study prepared by Oliver Wyman reports the Districts outstanding liability reflecting the time value of money at $11,355,712 as of June 30, 2007, a decrease of $1,571,478 from June 30, 2006.
2 Our results: financial trends The Districts Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2006 reported that the net asset position of the workers compensation fund improved by $1,874,754 during calendar 2006. In the 42 months of operation from January 1, 2004 to June 30, 2007, the net assets in the workers compensation fund increased by $5,803,262.
3 Our results: budgetary impact The workers compensation program is funded based on a percentage of gross payrolls, which was 1.7% from July 1 to December 31, 2004; 1.6% from January 1, 2005 to June 30, 2005; 1.5% from July 1 to October 31, 2005; 1.4% from November 1, 2005 to April 30, 2006; 1.3% from May 1, 2006 to August 31, 2006; 1.2% from September 1, 2006 to December 31, 2006; 1.1% from January 1, 2007 to the present. Financial activity is reported through an internal service fund for workers compensation, fund 702. In light of reduced injury rates, improved actuarial trends, and enhanced financial performance of the workers compensation fund, the Board reduced the taxing rate of payroll by 0.1% six times during the last three calendar years. Each 0.1% reduction in the contribution rate currently represents approximately $205,000 in annualized General Fund savings.
4 Key questions for your safety committee efforts How do you get labor and management representatives to join? How do you get them to commit? How do you get them to stay? Lesson learned: build trust through your actions, not your words.
5 Final thoughts Labor and Industry is a tremendous resource for employers Focus on process first You might need to spend money to save money Look for the tipping points