HomeMy WebLinkAboutRes 1028 - Workers Compensation Group Retrospective Rating Plan
RESOLUTION NO. 1028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, EXPRESSING THE CITY'S AGREEMENT TO
PARTICIPATE IN A WORKERS' COMPENSATION GROUP
RETROSPECTIVE RATING PLAN RECOMMENDED BY WCIA AND
AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT
REGARDING SUCH PARTICIPATION
WHEREAS, the City of Tukwila is a member of the Washington
Cities Insurance Authority (WCIA), and
WHEREAS, WCIA has made application to the Department of Labor
and Industries for the purpose of establishing a Group
Retrospective Rating Plan for its eligible members, and
WHEREAS, the City of Tukwila qualifies for participation and
finds it advantageous to participate under the terms and
conditions specified in the Contract attached hereto as Exhibit A,
now, therefore,
THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY
RESOLVE AS FOLLOWS
Section 1 Participation and Agreement Authorized The City
of Tukwila hereby agrees to participate in the Workers'
Compensation Group Retrospective Rating Plan recommended by WCIA
effective April 1, 1987 to April 1, 1988 and the Mayor is hereby
authorized to enter into the Contract attached hereto as Exhibit A
and incorporated herein by this reference as if fully set forth on
behalf of the City
PASSED BY THE CITY COUNC OF THE CITY OF TUKWILA,
WASHINGTON, this /5? day of 1986
APPROVED
q J l i!A U�E,��VNCIL PRESIDENT
ATTEST/AUTHENTICATED
CITY CLERK, MAXINE ANDERSON
APPROVE9 AS TO FORM
OFFICE F THE CITY T NEY
FILED WITH THE CITY CLER -2 S' E'6
PASSED BY THE CITY COUNC l,2 /S- '4K,
RESOLUTION NO
1
must:
CONTRACT
WHEREAS, Washington Cities Insurance Authority (WCIA)
has entered into a Group Retrospective Rating Plan as provided
under the provisions of RCW 51.16.035 et. seq., with the
Washington State Department of Labor and Industries, said Plan
being Plan B with a 1.50 Maximum Premium Ratio for the period
April 1, 1987 to April 1, 1988, and;
WHEREAS, the undersigned City (City) has been accepted
for participation in the group to share in the benefits to be
achieved by virtue of said Plan.
NOW, THEREFORE, it is hereby understood and agreed by
and between the parties hereto as follows:
1. Eligibility Participants in the program
a. Be a member in good standing of
Washington Cities Insurance
Authority.
b. Maintain a current and active
workers' compensation account with
the Department of Labor and
Industries.
c. Have a loss profile compatible
with the remainder of the group.
d. Agree to comply with an active
safety program as devised by WCIA
and the other cities participating
in the program aimed at reducing
losses and maintaining a favorable
loss profile.
e. Keep current its payments of Labor
and Industries assessments and
penalties and WCIA assessments under
the program.
f. Comply with all the terms of this
contract.
2. Expenses City agrees to pay its pro rata
share of administrative expenses prior to Plan inception and all
future pro rata shares of administrative expenses within 60 days
of billing.
-1-
3. Refunds /Recaptures City agrees that any
retrospective premium returns (refunds) will be held in trust
until the final adjustment has been made for this plan year. Any
premium recaptures will be paid out of the trust fund. At such
time as the final adjustment has been made, distribution will be
made to participating cities using a formula to be developed by
WCIA staff and adopted by a majority vote of the participant
cities prior to the end of the plan year.
Interest earned on the trust fund account will be
distributed, held, or applied toward administrative costs at the
direction of the participants.
4. Retrospective Penalties In the event WCIA
is assessed a penalty by Labor and Industries, group members will
be invoiced to a maximum of 50% of their plan year premium.
Returned penalties will be redistributed in similar fashion as
they are collected.
5. Failure to Pay Failure of a city to
promptly pay its original premium to the Department, its pro rata
share of administrative expenses, or retrospective penalty
assessment entitles WCIA to withhold any monies credited to city
in the trust fund to satisfy city's debt. City may be barred
from participating in future retrospective rating plans by
two thirds vote of the plan year participating cities without
cause having to be stated or proven.
6. Agency City hereby appoints WCIA to act as
its agent in matters pertaining to industrial insurance pursuant
to this Retrospective Rating Agreement.
7. Information Release City hereby authorizes
Department of Labor and Industries of the State of Washington to
release any and all information pertaining to industrial
insurance, experience, and files of the city to WCIA.
8. No Liability to State WCIA disclaims any
liability to the state for any premiums or penalties owed by any
city to the state. City acknowledges that WCIA assumes no
liability to the state for payments of premiums or penalties owed
by the city to the state with the expection of retro penalties
owed the state as provided in Paragraph 4.
9. The text herein shall constitute the entire
agreement between the parties and supersedes any other oral or
written agreement of any kind.
-2-
If any provision, or any portion thereof, contained in
this Agreement is held to be unconstitutional, invalid, or
unenforceable, the remainder of this agreement or portion
thereof, shall be deemed severable, shall not be affected, and
shall remain in full force and effect.
Executed by duly authorized representatives of the
parties to this Agreement this 11th day of February 1987.
CITY OF TUKWILA Washington Cities Insurance
City Authorit
�r
Y:
�`C....eg By:
Title: Mayor Title: y2/--P5
GROUP B
SAMPLE RETRO ADJUSTMENTS AT VARIOUS
MAXIMUM PREMIUM LEVELS FOR
1982, 1983, 1984 TOTAL AVERAGE
3 -Year
1982 1983 1984 Total
MPR PLAN B PLAN B PLAN B PLAN B
1.05 14,417 26,904 18,946 60,267
1.10 28,705 53,565 37,722 119,992
1.15 43,122 80,469 56,669 180,260
1.20 57,410 107,131 75,445 239,986
1.25 71,827 134,034 94,391 300,252
1 1.30 86,244 160,938 113,337 360,519
1.35 100,532 187,600 132,113 420, 45
1 40 114,949 215,504 151,060 480, 13
1.45 129,237 241,165 169,836 540, 38
1.50 135,107 244,884 175,316 555,307
1.60 143,140 248,741 182,434 574,315
1.70 148,764 251,440 187,416 587,620
1.80 153,583 253,754 191,687 599,024
2.00 159,809 256,743 197,203 613,755
Premiums $330,711 $338,796 $348,636
Losses $200,825 $96,419 $177,947
MPR
1.05
1.10
1.15
1.20
1.25
1.30
1.35
1.40
1.45
1.50
1.60
1.70
1.80
2.00
PROSPECTIVE
(Average Annual Premium $339,381)
MAXIMUM BREAK -EVEN MAXIMUM
SAVINGS LOSSES ALLOWED PENALTIES
37,671 339,381 16,969
75,003 339,381 33,938
112,674 339,381 50,907
150,006 339,381 67,876
187,678 339,381 84,845
225,349 339,381 101,814
262,681 339,381 118,783
300,352 339,381 135,752
337,684 339,381 152,721
339,381 348,440 169,691
339,381 363,363 203,629
339,381 374,593 237,567
339,381 384,786 271,505
339,381 398,803 339,381
PREMIUM
PAID FIRST SECOND THIRD FOURTH FIFTH SIxTH SEVENTH
ADJUSTMENT ADJUSTMENT ADJUSTMENT ADJUSTMENT ADJUSTMENT ADJUSTMENT ADJUSTMENT
PLAN
YEAR
1/1/87
1/1/88
SAMPLE RETRO ADJUSTMENT* SCHEDULE
1/1/87 1/1/88 1/1/89 1/1/90 1/1/91 1/1/92 1/1/93 1/1/94 1/1/95
FIVE REQUIRED ADJUSTMENTS
*ADJUSTMENT MAY BE EITHER A RETURN OR AN ASSESSMENT
TWO ADDITIONAL
ADJUSTMENTS AT OPTION
OF EITHER L &I.OR AUTHORITY