Agenda - Council - 08/27/1985 - Laserfiche WebLink

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LLL 1 ' The League of Minnesota Cities' workers' compensation program was created as a means of lowering cities' workers' compensation costs. The program is a joint self- insured program, and is offered through the League of Minnesota ' Cities Insurance Trust ( LMCIT), a joint powers entity. This self- insured program was designed for the League by Employee Benefit Administration Co. The program began its s-ixth year of operation on January 1, 1985 with over 340 participating cities, representing a standard premium volume of about $5.0 million. The following table shows the program's past results. i Initial Discount Year -End Dividend Total Savings 1980 6% 25% 31% ' 1981 15% 25% 40 1982 18% 20% 38% 1983 18% 16% 34% 1984 20% 0% 20% ' For 1985, the initial discount is 10 %. HOW THE PROGRAM WORKS ' Each city participating in the program deposits with the League of Minnesota Cities Insurance Trust its workers' compensation deposit premium for its policy year. This deposit premium is calculated using standard manual rates ' with the applicable volume discounts and experience modification, and discounting 10% from this figure. From these deposits, LMCIT purchases reinsurance to protect the program from catastrophic and abnormal claims; pays for administrative and loss control services; and pays claims. The ' balance of the deposits and reserves are invested, with the earnings accruing to the benefit of the participants. After the close of the program year, surplus monies in excess of appropriate reserves are returned to ' participants under a formula taking into account the earnings and claims experience of the Trust, as well as the loss records of individual participants. ' ELIGIBILITY All members of the League of hinnesota Cities are eligible to participate. ' However, LMCIT may require a city with a poor loss record to comply with specified safety practices as a condition of participation. AD fINISTRATION ' L:1CIT has appointed Employee Benefit Administration Co. (E.B.A.) as administrator of the program. E.B.A. also administers a similar plan for ' 83 university avenue east, st, paul, minnesota 551 01 (612)227-5600 � U league of minnesota cities ' LEAGUE OF MIIINESOTA SELF - INSURED CITIES INSURANCE TRUST WORMERS COMPENSATION. PROGRAM ' The League of Minnesota Cities' workers' compensation program was created as a means of lowering cities' workers' compensation costs. The program is a joint self- insured program, and is offered through the League of Minnesota ' Cities Insurance Trust ( LMCIT), a joint powers entity. This self- insured program was designed for the League by Employee Benefit Administration Co. The program began its s-ixth year of operation on January 1, 1985 with over 340 participating cities, representing a standard premium volume of about $5.0 million. The following table shows the program's past results. i Initial Discount Year -End Dividend Total Savings 1980 6% 25% 31% ' 1981 15% 25% 40 1982 18% 20% 38% 1983 18% 16% 34% 1984 20% 0% 20% ' For 1985, the initial discount is 10 %. HOW THE PROGRAM WORKS ' Each city participating in the program deposits with the League of Minnesota Cities Insurance Trust its workers' compensation deposit premium for its policy year. This deposit premium is calculated using standard manual rates ' with the applicable volume discounts and experience modification, and discounting 10% from this figure. From these deposits, LMCIT purchases reinsurance to protect the program from catastrophic and abnormal claims; pays for administrative and loss control services; and pays claims. The ' balance of the deposits and reserves are invested, with the earnings accruing to the benefit of the participants. After the close of the program year, surplus monies in excess of appropriate reserves are returned to ' participants under a formula taking into account the earnings and claims experience of the Trust, as well as the loss records of individual participants. ' ELIGIBILITY All members of the League of hinnesota Cities are eligible to participate. ' However, LMCIT may require a city with a poor loss record to comply with specified safety practices as a condition of participation. AD fINISTRATION ' L:1CIT has appointed Employee Benefit Administration Co. (E.B.A.) as administrator of the program. E.B.A. also administers a similar plan for ' 83 university avenue east, st, paul, minnesota 551 01 (612)227-5600