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BACKGROUND: This resolution authorizes the City to apply for and participate in the Bureau of Workers' Compensation sponsored "Retrospective Rating Program" for premium year 2006. Currently, the City participates in the traditional workers' compensation insurance program wherein it pays an annual premium, assessed on a percentage basis against the total payroll, to the Bureau. The Bureau then assumes all risks on the City's claims.
Under the "Retrospective Rating System" the City assumes the responsibility for ten (10) years worth of claims cost arising out of the injuries that occur during the premium year (with caps on individual claims and the City's total obligation). In turn the City pays a significantly reduced annual premium to the Bureau. The Bureau bills the City annually for actual costs associated with the claims filed during the premium year.
Under this system the City will pay the reduced premium and reserve enough additional money to cover the estimated ten years worth of obligations on the premium year's claims. This will result in a savings of several million dollars to the City.
Most major cities and school district throughout Ohio with large workers' compensation premium costs have moved or are moving to this system. The application deadline is November 30, 2005.
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To authorize the Director of Human Resources, on behalf of the Employee Benefits and Risk Management division, to submit the City's application for participation in the Bureau of Workers' Compensation's "Retrospective Rating Program" for premium year 2006 and to fully participate therein upon approval of the application; and to declare an emergency.
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WHEREAS, the Ohio Bureau of Workers' Compensation offers an alternative workers' compensation premium payment program called the "Retrospective Rating Program" that will result in a savings of several million dollars in premium costs to the City; and
WHEREAS, most major cities and sch...
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