|
<br />Property
<br />For the second year in a row, the Property Fund has satisfied all criteria necessary to trigger a return, which will be $3.2
<br />million for the 2005-06 fund year. The amount of each Member's Property Equity Return will be a percent of 2005-06
<br />contributions determined as follows:
<br />
<br />Member's Property
<br />Loss Ratio
<br />
<br />Property Equity Return as a
<br />Percentage of Member's
<br />2005-2006 Contributions
<br />
<br />
<br />Approximately 1,700 Members will receive a return from the Property Fund with 1,339 Members receiving a distribution of
<br />10% before considering longevity.
<br />Longevity Factor
<br />In addition to loss ratios, a component has been added that recognizes the length of time a Member has participated in the
<br />individual Fund. The equity returns shown in the preceding charts will be increased based on continuous membership in the
<br />applicable Fund as of September 30, 2006 as follows:
<br />
<br />1. 1% will be added for membership of 3 to 4 years.
<br />2. 2% will be added for membership of 5 to 9 years.
<br />3. 4% will be added for membership of 10 or more years.
<br />
<br />Pool lias returnldapproxl.atel, 853 Million Since 1113-14
<br />
<br />The Pool has a long history of returning Members' Equity when financial results have been better than expected. Since 1993-
<br />94 the Pool has returned approximately $53 million to members of the Workers' Compensation, Liability, and Property
<br />Funds. Equity returns have been possible as a direct result of the Pool's members working hard to keep their losses down.
<br />The Pool's staff of professional Loss Prevention Representatives is available to assist members in their loss prevention efforts.
<br />
<br /> History of Equity Returns
<br />Fiscal Year Workers' Compensation Liability Property Pool Total
<br />93-94 0 $1,100,000 0 $1,100,000
<br />94-95 $2,000,000 0 0 $2,000,000
<br />95-96 $2,700,000 0 0 $2,700,000
<br />96-97 $4,900,000 0 0 $4,900,000
<br />97-98 $1,400,000 $2,800,000 0 $4,200,000
<br />98-99 $1,400,000 $3,500,000 0 $4,900,000
<br />99-00 $1,500,000 $3,100,000 0 $4,600,000
<br />00-01 0 0 0 0
<br />01-02 0 0 0 0
<br />02-03 0 0 0 0
<br />03-04 0 $4,500,000 0 $4,500,000
<br />04-05 0 $4,900,000 $4,300,000 $9,200,000
<br />05-06 - $5,000,000 - $5,000,000
<br />05-06* 0 $6,700,000 $3,200,000 $9,900,000
<br />Total $13,900,000 $31,600,000 $7,500,000 $53,000,000
<br />
<br />* In January 2007, the Board adopted a Liability Fund equity return policy resulting in an additional equity return based
<br />on 2005-06 financial results.
<br />
<br />Questions? Call 1-800-537-6655
<br />
<br />If you have questions about your equity return ask for the Underwriting or Field Services Departments. For loss prevention
<br />assistance, contact the Loss Prevention Department.
<br />
<br />T.
<br />
|