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Auburn's 2011 11VCIA Assessment
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201A Differ.ence
L&I Worker Hours 842,748 923,975 -81,227
Auburn's Expected Losses 5.9% 6.1 % -0.2%
Auburn's ExpectedLosses2 $1,197,898 $1,125,511 $72,387
5 yr Capped' Losses Group;IV 3 $20,303,363 $18,450,999 $1,852,364
5 r Ca ed Losses Auburn $1,439,553 $1,461,107 $21,554
Auburn's % of Grou IV's Losses 7.1 % 7.9% -11.70/o
Reletivi (loss °k / Expected % 1.202 1.298 -10%
Auburn Assessment Rate 1.089 1.142 -4.87%
Assessment $917,397 $1,055,179 -$137,782
' Expected Losses % = Auburns 5 yr Worker Hours/Group IV 5 yr worker hours
2 Expected Losses = 5.9% " $20,303,363
35 yr Capped losses are from the 2005 - 2009 years .
4 Assessment Rate is computed by an actuary
2011 Auburn's Assessment Rate decreased by 4.87% and overall assessment decreased by 15% (9.6% decrease in worker hours)
2011 WCIA's Average Group IV Assessment Rate increased by 5.096
Assessment CaIculation ~
An actuary first determines how much money WCIA needs for 2011 inclusive of losses, operating budget and takes
into consideration investment income on reserves. For 2011 $29 million was recommended (4.4% increase) WCIA's
Exec Committee approved a 0% rate increase to keep the overall assessment collection at $27.5 million.
The actuary then allocates the $27.5 million between five actuarial groups (Cities are grouped into 5 different
actuarial groups). Aubum's Group (Group IV) allocation was 13.7 million. Next, the actuary calculates the
percentage each City must fund to collect the $13.7 million. When determining the percentage the Group IV City
pays the actuary primarily reviews each City's 5 years loss experience (2005-2009 for the 2011) and calculates a rate
per worker hour.
For assessment purposes each City's losses are capped to $100,000 per occurrence so no one claim can adversely
skew the allocation.
City of Auburn's WCIA Loss Ratio
2180.
$1,400,000
10 Year Avg. is 70%
$1,200,000
2007-2011 Claims are still developing
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$1,000,000
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$800,000 ~ i
- 76°/0 71 %
$600,000 - L
w -
F~ 4
57° ~
$400,000 ~ 43%
;
~
1 P~
$200,000 240;
I
5
~
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i~ -
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
❑ Total Incurred MAssessment '
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V1IC'IA's Cost Per Worker Hour
.600
,
$1.400
$1.200
$1.000
$0.800
$0:600.
$0.400
$0.200
$ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-♦-Cost per Worker Hr $0.776 $0.790 $0.788 . $0.927 $1.028 $1.019 $0.978 $1.076 $1.061 $1.071 $1.143 $1.089