1. Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Personnel Matters a.Workforce Update b.Capacity Planning c.Training and Development Initiatives d.Leave Balance and Usage Board of Directors – Open Agenda Item 4 August 16, 2012 Andreas Acker, Sr. Vice President & Chief Administrative Officer Dan Sevilla, Chief Financial Officer

2. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Workforce Update

3. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Capacity Planning Benchmarking Updated annual benchmarking compared to AASCIF companies and other workers’ compensation carriers AASCIF companies are much smaller with premiums of about $250M Projected State Fund 2012 staffing based on our 2012 GPW and AASCIF staffing benchmark Adjusted AASCIF staffing benchmark for complexity of CA WC and our State & Special Contracts work Analysis indicates we have approximately 1,100 FTEs available for future growth (32%)

4. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Capacity Planning Capacity planning We have numerous opportunities to improve productivity and expect our future productivity to exceed AASCIF benchmarks Productivity improvements enable transition of excess staff to Talent Retention Program for cross-training and redeployment to support future growth With 10% improvement in productivity, our 2012 staffing is sufficient for twice our 2012 premium volumes

5. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters We have 1,100 excess FTEs available for future growth

6. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters 2012 staffing is enough for almost twice current volumes

7. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Training and Development Initiatives Talent Retention Program (TRP) and Learning and Development (L&D) are working with Business units to determine near and far term needs Type and location of staff needs –Which job functions –Align work with staff locations (utilize existing staff as much possible) –Determine recruitment and exam needs

8. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Training and Development Initiatives TRP and L&D already working on developing the existing staff in TRP. Assessment of staffs current and past skills/experiences/capabilities Prepare staff for Business’s future needs –Training Near term, needed to perform current assignment Taking advantage of local training (cross training) Directly tied to building capacity –Additional job experience Process is continuous as new staff join or business needs change

9. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Historical Summary

10. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters 640 hour Cap Summary As of June 30, 2012

11. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Appendix

12. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Workforce Update State Fund Staffing Summary Report As of June 30, 2012

13. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Employee Leave Balance and Usage As of July 30, 2012

14. State Compensation Insurance Fund Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters The table below lists the monthly Annual Leave and Sick Leave/Vacation accrual rates for a full-time employee in Bargaining Units 1, 2, 4, 10, 12, 13, 14, 15 and 17: Length of Service Annual Leave Vacation + Sick Leave (8 hours) 1 month to 3 years 11 hours 15 hours ( 7 hours + 8 hours) 37 months to 10 years 14 hours 18 hours (10 hours + 8 hours) 121 months to 15 years 16 hours 20 hours (12 hours + 8 hours) 181 months to 20 years 17 hours 21 hours (13 hours + 8 hours) 241 months and over 18 hours 22 hours (14 hours + 8 hours) The table below lists monthly Annual Leave and Sick Leave/Vacation accrual rates for a full-time employee designated supervisory, managerial or confidential or other excluded employees: Length of Service Annual Leave Vacation + Sick Leave (8 hours) 1 month to 3 years 15 hours 15 hours ( 7 hours + 8 hours) 37 months to 10 years 15 hours 19 hours (11 hours + 8 hours) 121 months to 15 years 17 hours 21 hours (13 hours + 8 hours) 181 months to 20 years 18 hours 22 hours (14 hours + 8 hours) 241 months to 25 years 19 hours 23 hours (15 hours + 8 hours) 301 months and over 20 hours 24 hours (16 hours + 8 hours)