Title
Receive an oral report and presentation on the General Liability and Workers' Compensation Programs for FY 2016-17 through March 31, 2017.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors' Budget Committee:
Receive an oral report and presentation on the General Liability and Workers' Compensation Programs for FY 2016-17 through March 31, 2017.
SUMMARY/ DISCUSSION:
Risk Management will present an overview of the General Liability (GL) and Workers' Compensation (WC) programs for Mid-Year Fiscal Year (FY) 2016-17 as of March 31, 2017. This report is in response to the Board of Supervisor's request for a semi-annual update on the trends of claim frequency and severity for GL and WC.
The County of Monterey is a certified State of California Self-Insured Public Entity. Pursuant to the State Controller's guidelines for self-insured California Counties, Risk Management contracts with an independent actuarial firm, Bickmore Risk Services, to conduct annual studies and provide reports for both the General Liability and Workers' Compensation programs.
These independent actuarial reports determine and reflect:
- The County's liabilities for current and future claims;
- The Internal Service Fund's assets available to pay these liabilities; and
- The cost allocations to be charged to each department, to fund liabilities at the 70% confidence level.
Both the GL and WC Programs have been funded at the 70% Confidence level for the past 11 years, which is considered "marginally acceptable" by the County's actuarial company. The State Controller's Office and the County's independent actuarial company, however, recommend that after 10 years of operation these two programs should move to an 80% confidence level of funding.
Prior to October/November 2017, the Board of Supervisors will need to consider whether the GL and WC programs should be moved to the 80% confidence level or remain at the current level of 70%.
General Liability:
As previo...
Click here for full text