The URL can be used to link to this page

Home My WebLink AboutMINUTES - 12021986 - FC.1 TO; BOARD OF SUPERVISORS FRQM, Contra : Finance Committee Costa DATE . December 2, 1986 Cour'ty SUBJECT: Actuarial Study of County' s Self-Insurance Trust Fund SPECIFIC REQUEST(S) OR RECOMMENDATION(S ) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Adopt a funding strategy plan with the goal of funding the County' s self-insurance programs at the 80 - 90 percent confidence levels by the end of the 1989-1990 fiscal year. BACKGROUND: An actuarial study was completed on the 'County' s self-funded workers ' compensation, general liability and medical liability programs . That study was submitted on September 9 , 1986 to the Board of Supervisors. The Board directed referral of the study to the Finance Committee for review in conjunction with the Budget Committee referral on this matter. . We reviewed the study on November 17, 1986 . The actuarial study is an important step in determining the County' s financial obligations resulting from losses incurred. The next step is to ensure the necessary funds are set aside to cover losses and protect the fiscal solvency of the County. The study recommends funding the self-insurance programs in the 80 to 90 percent confidence level range. To attain this, the goal is to fund the upcoming fiscal years at 90 percent confidence levels until such time as the overall confidence level for all liabilities is at the 80 to 90 percent confidence level range. We are, therefore, recommending the action noted above. CONTINUED ON ATTACHMENT: SIGNATURE: RECOMMENDATION OF CO NT MINISTRATOR X RECOMMENDATION OF OOARD COMMITTEE APPROVE THER A S I GNATURE 5qil�wi ACTION OF BOARD OCn December 2, 1986 - APPROVED AS RECOMMENDEO OTHER _- VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X_ UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES:_ NOES:" AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc: County Administrator ATTESTED December ,2, 1986 Risk Manager PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382%7-83 Y �� DEPUTY OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building Martinez, California To: Finance Committee Date November 17 , 1986 Supervisor Tom Torlakson Supervisor Robert Schroder Actuarial Study of From : Joseph J. TondaOLLo L Subject : County' s Self-Insurance Risk Manager Trust Fund It is recommended the Board of Supervisors adopt a funding strategy plan with the goal of funding the County' s self-insurance programs at the 80 - 90 percent confidence levels by the end of the 1989-1990 fiscal year. BACKGROUND: An actuarial study was completed on the County' s self-funded workers ' compensation, general liability and medical liability programs. That study was submitted on September 9, 1986 to the Board of Supervisors . Attached are copies of the study and the report to the Board. The Board directgd referral of the study to the Finance Committee for review in conjunction with the Budget Committee referral on this matter. The actuarial study is an important step in determining the County' s financial obligations resulting from losses incurred. The next step is to set aside the necessary funds to cover losses and protect the fiscal solvency of the County. The actuary who conducted the study and I will meet with you to discuss the study. we will also discuss a funding strategy plan to fund losses at the 80 - 90 percent confidence level. JJT:py Attachment v TO: BOARD OF SUPERVISORS _ 069 FROM ; Phil Batchelor, County Administrator C a Costa DATE ; September 9, 1986 c oirty SUBJECT: Actuarial Study of County' s Self-Insurance Trust Funds SPECIFIC REQUEST(S) OR RECOMMENDATIONS ) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Receive this report on the actuarial analysis of the County' s self-funded workers ' compensation, general liability and medical liability programs, and refer to the Finance Committee for review in conjunction with the Budget Committee referral on same subject. BACKGROUND: An actuarial study was conducted by Milliman & Robertson, Consulting Actuaries, of the County' s self-funded workers ' compensation, general liability and medical liability programs. The purpose of the study was twofold: 1 . To estimate funding requirements ( i.e. , loss reserves) for accidents that have already occurred, and 2 . To estimate loss costs for future fiscal year policy periods. The study discusses funding at expected value and at different confidence levels. Confidence level refers to the estimated probability that losses will not exceed the indicated reserve funding amount. The study recommends funding at the 80 to 90 percent confidence level. Expected value refers to the overall average level of losses estimated for a coverage year and approximates a 55 percent confidence level. The study found that the County has funded self-insured liabilities incurred through June 30 , 1986 at slightly above the expected value level. The study commends the County for maintaining reserves at the expected value level at a time when public agencies have- many other financial needs. However, the study recommends the County should have the goal of funding its self-insured programs in the 80 to 90 percent confidence level range. This can be achieved by funding future fiscal years, 1986 , 1987 and 1988 at 90 percent confidence levels. The actuarial study will be referred to the Finance Committee for further review and development of a funding strategy plan for the upcoming fiscal years. CONTINUED ON ATTACHMENT! - YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENION F BO D COMMITTEE APPROVE OTHER SIGNATURE 5 : ACTION OF BOARD ON _ep em er , APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT _ ) AND CORRECT COPY OF AN ACTION TAKEN AYES: _ NOES'. AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: �i ABSTAIN: _ OF SUPERVISORS ON THE DATE SHOWN, cc: /AO-Risk Management ATTESTED September 9 , 1986 PHIL BATCHELOR. CLERK OF THE BOARD OF SUUJJP/ERR,VISSORRSy�AJAND COUNTY ADMINISTRATOR ...... ._........ ......... ._ 1f CONTRA COSTA COUNTY SELF- INSURANCE ACTUARIAL STUDY f EXECUTIVE SUMMARY MIlliman &- Robertson, Inc. , MR) was engaged by Contra Costa County .to estimate the loss reserves for the Countyrs self- insurance liabilities. Our primary conclusions and recommendations are: 1 . We estimate that a loss reserve of $23.6 million Is needed to provide for the expected value of self- insurance liabilities incurred through June 30, 1986. Recognition of future investment Income, assuming an annual yield on investments of 6.75$, would reduce this amount to $20. 1 million. 2. . The expected value estimate of liabilities is based on the assumption that future loss development patterns will be similar to^past development. It includes no pr.ovision . for. unanticipated adverse loss development. Reserve estimates corresponding to higher degrees of adequacy are summarized below : c Estimated Reserve for Liabilities through 6/30/86 (Amounts in Millions) Confidence Discounted for Level Undiscounted Investment Income Expected Value $23.6 $20. 1 70$ 27.7 23.7 80$ 30.4 26.0 90% 34.8 29.8 -Far- the purposes of this study, the term confidence level refers to the estimated probability that actual losses w.11. 1 1IQ± exceed the Indicated reserve amount. The difference between the confidence level and the expected v.al,ue indications can be considered an adverse fluctuation reserve. Given the uncertainty and volatility of ultimate claim costs, such a reserve is an important element of a responsibly funded self-insurance plan. __�UILLIMAH 6 ROBERTSON. INC CONSULTING ACTUARIES t 7 iii•. 3. We understand that the County has $20.4 million set aside for self-insurance liabilities as of June 30, 1986. Comparing this amount to the table above, the County has funded the program at essentially the expected value level ; i .e. , at the 55% confidence level . The implied reserve for adverse fluctuation is30.3 million. 4. Our estimates of .total losses during the IL86/87 fiscal year are shown below : Estimated losses During 1986/87 Coverage Year (Amounts in Millions) Confidence Discounted for Level Undiscounted Investment Income s: Expected Value $ 7.8 $6.6 70% 8.7 7.4 80% 9.8 8.4 90% 11 .7 9.9 5. We would suggest that the County ultimately develop a reserve fund In the 80% to 90% confidence level range. By funding the 1986/87 and 1987/88 coverage years at the 90% confidence level , the County could reasonably expect :a reserve.: fund at the 80% confidence•'Ievel: by July 31 , 1988, 6. Given the uncertainties of both the current claims environment and the insurance market, we recommend that the County monitor the self-insurance liabilities closely with an annual actuarial review. The readers of this actuarial analysis should realize that there is a substantial degree of uncertainty inherent in all projections of future insurance losses. Despite this Inevitable variability, the results presented in this report reflect our best professional judgment and are, in our opinion, as accurate as can be expected. For a more detailed explanation of our analysis, we encourage a review of our .detailed report. Mllliman b Robertson, Inc. . Michael k. McMurray August 14,' 1986 Fellow, Casualty Actuarial Society Member, American Academy of Actuaries -2- MIIIIMAN 6 ROBERTSON. INC--CONSULTING ACTUARIES t l t CONTRA COSTA COUNTY SELF- INSURANCE ACTUARIAL STUDY This report presents the results of the actuarial analysis conducted by Milliman 8 Robertson, Inc MR) of the workers/ compensation, general liability, and medical malpractice self- Insurance programs of- Contra Costa County. SCOPE OF THE STUDY . The primary objectives of this actuarial analysis were: 1 . to estimate the Foss reserves for accidents that have occurred from the inception of the self- insurance plan through June 30, 1986. 2. to estimate the liabilities for losses occurring during the 1986/87 fiscal year. SUMMARY OF RESULTS Our best estimate of the expected value of outstanding liabilities for losses incurred through June 30, 1986 is $23.6 million if there is no recognition of the Investment income that would be generated by a reserve fund of this amount. Full recognition of the future investment income at an assumed annual yield of 6.75% would reduce this amount to $20. 1 million. Similarly, our best estimate of ultimate MILLIMAN A. ROBERTSON. INC. CONSULTING ACTUARIES - .............................. ..... ..................... L losses during the 1986/87 coverage year is $7.8 million, or $6.6 million on a discounted basis. The term expected value refers to the overall -average level of losses estimated for the coverage year(s) . Exhibit 1 shows our: reserve estimates, both undiscounted and discounted for estimated investment earnings, at various confidence levels. For this analysis, the term ''confidence level refers'`to `the prob'abiIIty ' that actual losses for a particular year or combination of years will not exceed the Indicated funding :amount. The .dif.ference . between the confidence level and expected value indications can be considered an adverse fluctuation reserve. . Given the uncertainty and volatility of ultimate claim costs, such a reserve is an important elementof• a. reasonably funded self—insurance . plan. .. Our estimates of ultimate losses for the 1986/87 coverage year are shown by coverage on Exhibit 2 at various confidence levels. rrt Exhibit 3 shows our estimates by coverage of the fluctuation reserve amounts which would be required to bring the expected value reserve up to the Indicated confidence levels. MAJOR ASSUMPTIONS 1 . Estimates of the expected value of ultimate losses for past coverage, years were based .primarlly on the assumption that fut.ur.e. loss development patterns will be similar to those In the past. .2— MILLIMAN S ROBERTSON. INC. CONBULTINO ACTUARIES 2. Estimates of fluctuation reserves for past coverage years were based on the assumption that the age-to-ultimate incurred loss development factors are normally distributed about the selected age-to-ultimate factor. 3. The lognormal probability distribution was used for modeling the size of. loss distributions, as shown on Exhibit 20, 21 :r. and 22. This particular distribution -Is widely used in the insurance industry for pricing excess limits of liability coverage. 4. Estimates of Investment income on expected value reserves are based on the payout pattern exhibited by the.- County ' s actual loss payment experience. Investment Income on the fluctuation reserves was estimated using the same payout pattern, but reduced by 20% to allow for the increased uncertainties. 5. Ultimate loss estimates for the 1986/87 coverage year- were based on claim counts for past coverage years through June of 1986, estimated ultimate severities, and budgeted payroll for 1986/87. 19ETHODOLOGY Projections of expected value ultimate losses for past coverage years were based on. the incurred loss development method and • the cumulative paid loss development method, as shown on Exhibits 5 -3- MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES ' lin . I through 19. The loss development methods involve projections of future changes In experience to date by coverage year, based on historical emergence patterns. Loss data for general liability and medical malpractice as of June 12, 1986 was treated as if it were June 30, 1986 data. The apparent decrease in workers' compensation cumulative loss payments for:_.some. coverage:iperiods',:between December 31 ,- 1985 and June 30, 1986 which resulted from .the claims administrator changeover, was ignored in making the selection of development factors, and therefore .will not significantly affect our results. The amount of losses In excess of $50 thousand per claim was also considered when making development factor selections. DATA SOURCE All of the data used in this analysis was provided to us by e'f the Risk Manager of Contra Costa County and was accepted without audit except .for a check for reasonableness. VARIABILITY OF RESULTS Any actuarial projection of "losses produced by the highly volatile exposures of unilmlted general liability and medical malpractice, and high' retention :workers' compensation. is subject to a high degree of inherent variability. Among the causes of this variability are the unpredictable external —4— MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES factors which affect future inflation rates, litigation + trends, and claim settlement patterns. Thus, we believe that actual results could differ significantly, and in either direction, Xom the results projected In this analysis. Nevertheless, the results presentedherein reflect our best professional Judgment and are, in our opinion, as accurate as can be expected from any actuarial analysis. RECOMMENDATIONS We understand that the County has funded $20.4 million toward its self- insurance liabilities as of June 30, 1986. This i-ndicates an existing reserve level slightly higher than the expected value reserve of $20. 1 million as of June 30, 1986. The expected value reserve approximates a 55% confidence level reserve. The County is to be commended for maintaining reserves at such a level at a time when public agencies have many other pressing fin'aAn cial demands. We would suggestthat the County establish an ultimate reserve fund adequacy target in the 80% to 90% confidence range. At this level of funding, the County should be able to withstand most normal fluctuations in the self-insurance i c:lalm experience without impacting general revenue funds. We anticipate that an 80% confidence level reserve could be developed by July 31 , 1988 If both the 1986/87 and 1987/88 coverage years were funded at a 90% confidence level . -5- �MILL IMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES Given the potential volatility of the self- insured exposure, we strongly recommend that the County closely monitor the workers' compensation and liability programs. We_ believe that this can be done most effectively with annuall actuarial reviews. The basic purpose of . future actuarial studies is to provide updated indlcat.dons: -of< thezadequacy..of the. self- insurance fund. However, the analyses will also provide the following: 1 . an actuarial statement of opinion regarding the self- insurance fund, which may be used in lieu of a certificate of insurance, 2. an early warning of trends in self- insurance claim costs, and 3. a basis with which to compare and analyze commercial insurance proposals for excess coverage. ivy Mllllman d Robertson, Inc. Michael A. McMurray August 14, 1986 Fellow, Casualty Actuarial Society Member, American Academy of Actuaries -6- MILLIMAN 6 ROBERTSON, INC. CONSULTING ACTUARIEB Exhibit 1 ?S� Contra Costa County ®® RESERVE ESTIMATE DISCOUNTED FOR �6 ANTICIPATED INVESTMENT EARNINGS ASSUMING 6.754 ANNUAL YIELD Estimated Discounted Estimated Investment Reserve Loss Reserve Earninas Estimate LOSSES THROUGH 85/86 COVERAGE YEAR Expected Value $230638_ $3,508 $200130 70% Confidence Level 27,709 40021 23,688 80% Confidence Level 30,410 4,378 26,032 90% Confidence Level 340817 50033 29,784 LOSSES DURING 86/87 .COVERAGE YEAR Expected Value $ 70807 $1,197 $ 6,610 70% Confidence Level 80682 10,309 7,373 80% Confidence Level 9,827 10459 8,368 ® 90% Confidence Level 110651 1,721 9,930 TOTAL LOSSES THROUGH 86/87 COVERAGE YEAR Expected Value $31,445 $4,705 $26,740 70% Confidence Level 36,391 58,330 310061 80% Confidence Level 400237 5,837 340400 90% Confidence Level 460468 6,754 390,714 NOTES: 1. This_exhlblt summarizes our reserve estimates for past coverage years through 6/30/86 and for the 1986/87 coverage year. It shows full value reserve estimates and reserve estimates discounted for anticipated investment earnings, at several confidence levels. 2. Amounts are in thousands of dollars. MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES Exhibit 2 Contra Costa County f>: ESTIMATED ULTIMATE LOSSES FOR COVERAGE YEAR 1986/87 UNDISCOUNTED Expected Confidence Level Value 70% 80% 90% WORKERS' COMPENSATION $50199 $5,646 $60078 $ 6,592 GENERAL LIABILITY 10328 1,376 10724 2,596 MEDICAL MALPRACTICE 10280 1,660 2,025 2,463- TOTAL _463TOTAL $7,807 $8,682 $9,827 $11,651 DISCOUNTED AT 6.75% ANNUAL YIELD > :. Expected Confidence Level `r Value 70% 80% 90g WORKERS' COMPENSATION $4,367 $4,757 $50126 $5,559 GENERAL LIABILITY 1,142 10184 1,490 2,248 MEDICAL MALPRACTICE 10101 1,432 19751 2.123 TOTAL $6,610 $7,373 $8,367 $90930 MOTES: 1. This exhibit shows our loss estimates for the 1986/87 coverage year, at several confidence levels,, and on both an undiscounted and a discounted basis. :. 2. Amounts are in thousands of dollars. MILLIMAN A ROBERTSON, INC. CONSULTING ACTUARIEB Exhibit 3 ??� Contra Costa County FLUCTUATION RESERVE AS OF 6 30/86 Fluctuatlon Reserve 70% 80% 90% Expected Value Confidence Confidence Confidence Reserve Level Level Level WORKERS/ COMPENSATION $ 90947 $1,269 $20106 $ 3,465 GENERAL LIABILITY $ 5,063 $1,028 $1,717 $ 20845 MEDICAL MALPRACTICE S 8,628 $1p774 $20949 $ 4.869 TOTAL $23,638 $40071 $6,772 $11,179 i NOTES: 1. This exhibit shows our expected value reserve estimates as of 6/30/86 and the additional (fluctuation) reserve which would be needed to establish reserves at higher confidence levels. 2. Amounts are in thousands of dollars. iFts; MILLIMAN 6 ROBERTSON, INC. CONSULTING ACTUARIES Exhibit 4 Contra Costa County EXPECTED VALUE RESERVE AS OF 6/30/86 (1 ) (2) (3) Estimated Payments Estimated Ultimate as of Reserve Losses 6/30/86* (1 ) - (2) WORKERS/ COMPENSATION $23,690, $130743 $9,947 QFNERAL LIABILITY 140052 8,989 5,063 MEDICAL MALPRACTICE 16.899 80271 8.628 TOTAL $54,641 $31,003 $230638 NOTES. 1. This exhibit shows our estimates of ultimate losses as of 6/30/86 from Exhibits 5, 6, 7, 8, and 9. It also shows the total payments made as of 6/30/86, and the resulting acted value.reserve estimates. 2. Amounts are in thousands of dollars. . 3. (*) Paid losses for General Liability and Medical Malpractice are as of 6/12/86. 4. Coverage periods are 11/4/75 - 6/30/86 for General Liability and Medical Malpractice, 7/1/77 - 6/30/86 for County Workers' Compensation, and 1/1/78 - 6/30/86 for Fire Districts Workers' Compensation. i MILLIMAN 6 ROBERTSON, INC. CONSULTING ACTUARIES Exhibit 5 M O O O O O O O O O u C O OO O O O O O O 11 O .. ft L It 1` -qr04 M .� N O t0 M II C n N % N O M C1 M a0 O 11 3 L r 10 1t t0 N a0 t0 t0 co It O X w . w + . w + w + 11 L W u V .- — N M 0% If N • It {q b9 U N L O r- r N r N � 1 In r- 1-4* � C1 W ^ O 01 10 Q 1x 04 �O %00 % 0 % N aa0 � I CD C .. tp tp + t0 M O ^ O O a ' N M M M O 404 _ m r M co 1` n N co � a M u1 -co O N N M r .-. 00 %O N N N 01 co w . m O 10 a04 N L%0 r- M .�-- O^ M 10 00 4_n 1 N M M O w v m In p .0m N >" E 4- a0 %0 O %0 N %0 WN 01 w N } . •-• al 1- 4 01 N t0 st co O 10 lqt u*% in O c et 00 E O ^ N M %0 0% co M m— U > W N r CA 0 O} 40 4- a W E 1}A 0 t}_ p - p /o C> U 0 N a0 O0% N M N N 11 O E � m H M wl v � %0 O 011 M M If two > O i O co f0 N 01% 11 — 0 O co .1- . O O u'1 N a M 0 J M 001 1- M w_-" O N r- a m O — 10 In If V' M 0% M %0 M ILl If U .� w . + + + + + + II 00 Ea — ^ it N E U •9 49 It im•N t0 m E —V C Q Q m E } O O O a n N r r to m .. a 1_ a o O O r i- ao n r 01 m— N O } OO O 01 C% 01 C1 a0 - i*-' m • • • • • • • • t0 N 0 C0 m QILL. m} cn V O c 3 /0 st M 01 M 'qt O 't 11 } V 000 � N i1 N O O 1- U + C1 O M 11 H^ L 1!1 In M N n aD w _ If 01- 10 1- Ic% ^ 1- � O N a N C U J w w w + . + .• w w u 10 C •– •-- •– •-- •-- ^ N M ^ a _c) w 404 11 d^ r a X4 m- 0) a0 01 O •- N M d' In %0Go co Go Go Go ao co L « L X L P Go O N M � < q F"W . . 1� 1� 1� . 00 a0 co ao a0 a0 F– b O1 C1 C1 01 - 01 01 c1 01 01 F0' It MILLIMAN 6 ROBERTSON, INC. CONSULTING ACTUARIES ExhlbIt 6 Ha. O O O O O O O O O W %p O O O O O O .O O Oa C O O O O O O O O O q O OO 01 M •- 01 Y C . D v co N N N N M � co a - X . q C W cW W p N N L O lq O O R _ 0 01 _ N1 tn N 1 b W w tca f, 1n _ it1 tO t0 N 01 N `•- t0 w ' ft ft ft % ft 01 .-- st O N 01 t0 M at f- I r-N ^ N N N N a � N m N w E CL w O _ > 40 cs M 000 n � N � M OOt D w v N c '0 G N _ E } — Y1 In n . IO N 00 M O N O c L d O O w d — N � n � 001 N— A m Q LL. E in W +-4- W -} v E LL m (A O w f� N f� 00 01 Lr% u**% q xy A O > mOD O% O tO f� 01 01 At M Y {-`F- In go v f[N a 00+ N M I 7 NV 'ROY U •�} N w w N N N N N co qq O E 7 a. •- Y 44- 404 w n } to E40 0 } ul m U RRS� `E O O O M C) 01 0 - r — m -0 L O O O O O at r- C) % A- -N O O O o o rn v1 rn o1 o to o MO O O O . w .- A 0 !40 V' _ C} H ' O c � A m M co ^ N UN M N b � p AM — w }.� .. L .H L N w w. w O " t0 at It w OD 'Y Lv 7 O O t` 0 M •- M to N Y N c cJ N N N in M lqt W% 01 a } A Ax♦- Vl co 01 O _ w - N M O 4w W% A I� r- - co ' OD co OD 00 co OD .. �� - . m f- 00 w N M q 1n W n r- h O OO 00 OD O O F"' Y Ot 01 T Ot Ot OtOt 01 Ot O h11LLIMAN & ROBERTSON. INC. CONBULTINO ACTUARIES Exhibit 7 0 0 0o o a 0 0 0 0 0 0 0 0 o ff c +- 0 0 0 0 0 0 0 0 o u O N 1` N Co M H C v � t0 N M Ot 1- 1� tO u 3 tu 0 u 0 x w W a .c w ul a L _ O O � ON � � co to - � co U O Ot M N O CD 1- : N mt to /\ ft A \ 1 1 A l^ 1 1 W_ � 04 C14 U'% M M Go co n N 4- fn w m E CL O Z > - m O M O 0 OW N M v a C LL � N a1 cN O M N %0 U"% m ul .. w ♦ w t •.• t0 CD 1- t0 ON 14T 01 IV Ot } lqt t0 N N Ot u1 co � � C w O v m in tu FA c O a m T E 4- + tO 0 +- 0_ L 01 O N n 1\ N M W% N tO ul O C m X 0 0 E N N N N III% a1 CO .91' 1` m - 7 L v —} . . . • . . • . . N O — m 0 U u. > a N Ocio to D E — }ul _ 4- +- > - +- V '..i:. > > H co MOi � U7t M tO 0a a — 0 — L ^ O N O +- Ix ••. } J CD tO co CO M M %a. 1- CD H . . . . . . + a m m O —v M � N N d' Ot N a .. v-} c C..) ^ N N N .9r N f- a O to O � a w w u m+ 0 +- U } ul a7 m a E m C O N } 0. U CL E } O O O O Ot N N �- CD m'm C7 .-. o. I- o 0 0 0 o r O W% _ m— N O O O O O O O O O M to 0 O > C7 CO N 3 O C L 0 }� �v 10 O M O O O N M :Co W a 1A a1 of m N O 1- Ot 1- .4T CD CO 0% a L N W% N a\ CD n -it N Co tO u O t0CD 1- t0 Co M In t0 M u IA C m U J qt tO - N N Ot a1 r- %0 a } E c w w aIT O G IA m x} > m— m O1' CO Ot O ^ N M qt W% tO IA^ . 40: I� 1- Co CD OD Co co Co Co «..a^ L. I� coI .I- N M � � � W 1--•W r r- co 0 Co 0 m Co 1- a rn Ot O+ rn rn Ot Ot Ot Ot a ai MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES Exhibit 8 c0 O O O O Cl o O O o o O a } O O Oa O O O Cl O O a O C 0 0 0 0 0 0 Cl 0 0 0 Cl u O % . . - tT tT Ot CO co O s't M t0 Ot N tl c ^ O n CO IV Go co N W% N 3 X •'' ^ N O -T f- co 14tM O h0 a O N w w a to L- 0 O O co � co f� CO M r co M Ul - W Cf O v ^ v rn ^ N M W% lq* c t0 � Ot•- W% -W M •-- fn ft . w w . W N .- N1 ^ .- CL " m > O1 f- CO 1- ^ t0 M 0% OO 0% O m cs O O O M t0 40 M tO N O N .: y ' ,. . . . ," , . . m to N •- M . O v a O .. m ^ d L ":p p .;00 ,O ^ WN N M N Q CA in % n w H c -W O.O O O -O - :O O Nr m M Go m O E 7 v —}: • • • • . • • • . • . N O m U .. ^ . .-- ..-- ^ .- .- .� M t0 CO to M a U >°!0 m,V_. U 4-- tD E tD N +. 4- tT E .� m H C% •r CD O t0 .- t` N N fe t0 N — s ; to > N O . 0% O O Ot CA 0% M n M N u } v- ..� . L — 'O- .,V' t0: :^.;-..:'O ^ Ot .et.. .;.M :.�.in...;..-.00 'Ct A � � —.O m fto (D M to Ci OO qr f- M ^ ^ r Ot I tb u M L v v ^ N n Q n n at N M N OOi a O }0E 40 �- C N N Co a to E O U W to p 0 {--f- 4- 4- to to 0'a E m } } CD — E 'O".0 O "M t0 O .- M Ot ^ CX I- - D O .O t0 N A O- d ^ - m tD W N 00 O O 'O O O O O O N In Cl } m{- v — i-' - • • • • • • • • • • Q to O N > A t0 m 0 ; - O C L .Ot n O ^ O tO • N N t0 N }{- O Ot' O O 01 Ot O% M M N M N tl w U ^ L N . 0% co Ot N M M . f- a Ot -it •- N O L H O n t0 N N 00 IV ON l4t u C v} . O ^ N OO 'qt 1` CO Q N r- •- Iq M a 4n C C UJ , . w . ft t0 m c N ^ M L 40 m X ± > m r N _ a 0 fT .:a0 CO at' O ^� 'M -W N1 t0 $A •- . ^ O cow 00 O CO O co ttt�//«7��j•� Lam• m -..t 1 t0 r- co � .it A �-� N M v 1[11 � � % �FL-. La* .^ .n O CO m 6O O co h- 0 MILLIMAN 6 ROBERTSON. INC• CONSULTING ACTUARIES . Exhibit 9 Ot O O O O o O O O O O c O a O O O o o O O O O O c O 11 c 4- Ic O O O O O O O O O C> c o If O n ^ ♦ ♦ ♦ ♦ , p N N O st 01 OO OO C5 cq Ot II C Lv M h 01 co h co co O N c a% U 3 X � + co M 4n at Q O M co U O ftftft U L LLI N N M t0 tl N tl 69 Nf 11 N L O } UN CV N _M O 111 v to O v U 14 01 h M -10 N h to 01 01 N M to Q O O �'t t0 N t0 h N %0 st 4- x N N lqt 1[l co O O t0 .- t0 4- %0 t0 M V' h co 1n M Ot N co 10 N c -it I M 01 01 t0 Ot t0 O 1-t m ♦ ♦ . E sA N M N O N _ > MCNI �1 ^ NOO1 h CO O M 0t a et "- O O .- co h I t0 OO -it t0 ♦ ♦ ♦ ♦ ♦ . ♦ ♦ ♦ ♦ ♦ m -••. - N N O a0 t0 M M c . ... M 0% 1 1 OO - to - .- M tp �- h OO O to et M 01 O v N N M N O W CD N c 0 (D m } O O O %0 v t0 O Go 01 01 h u1 > E O O O O M M h b O O ♦ y i- ^ d L CC O O O •- N M h 0t 14T O N O c V O O E 0 (D — 07 .. _ {- I I I I I I et CO 10 M to U > 0 M O +- 0 LL N — to t0 E } (D tppq } — C� E CD U1 M N N t0 O V' 01 t0 co rlO 11 W > U1 01 h to •- O to 10 N t0. co CC N u 4- is iSL _ O -q O O + M N t0 N .00 � Na - O c O M W ..1 ,.N - N 1 O 01 10 lw t0 01 Go ^ q m Q — v M -W h0% to N N N t0 N h a w i- vv -- I-* I to Go to N •- N U O t0 7 (L N �- co ft 11 Uf E U Vi w q m i- {- N t0 m E — 'v _ +- } m 0 } m U E - O O O O O O h at to h m ^ t1 L O O O O h 01 N O IV N OO - m — N 00 O O O O N < co M h } m .. _ j- • • • a) N m U p LL 04- U) }UI v 00 z to W% N N b O v at t0 co O q ft v Ot h to .- O M %0 N 10 O CC N a N Ot 4D of O O to N 1 N .N Mc st a 3 ..'L N ♦ ♦ ♦ . . ♦ ♦ ♦ ♦ U O L. W N N O Ot %• r- h. Ot M♦ cs to a L V ... 7 O M h 01 h I-T M h LLlcs t0 a UI c .. 0 J -4t f- OO h N co N M l4t a W N •- •-' N N a —co M _ p a t U/ X } m -- m � f- h (0 OO OO OO OO Go OO: .,,f w L X 1 1 d •,1„ N M V1 to J a F" W n � r n h co co co (0 m ao F- a a at at at rn at 0+ a rn rn (A a° __ — MILLIMAN ,f4' ROBERTSON. INC. CONSULTING ACTUARIES s Exhibit 10 Page 1 of 2 NCNMM — N1 —CO W — O O fir, d' r N C-4 N 14T N0 CN cc;CNOM 0000 O ON COO — Mn CD N n NO CO b C) + w w w + } O w U m nOMNn O N UN ON NO .- f` OL 'ON n M - - N ON G x W N N O SON OO p 0 O Ot WO_ ONUN0n . . . W m aO n O M at %OMNro O MMOw .CN — N � ODM W N N w w + + i- ON N N O n co CO co L - mNV n0% CMOM O Iq OON— OON O� } . r- %0n M — r OO— O O O U w w w w + w R W 00 OMC% M %0 W% O � O CCN r Co U w -w • w w + } co %0 r M NO at O .. CsN .- N CO O -it cc ON 0%CN O ON CN ON CN — N. Get N N - N V . . m w + . NO N M.�_b;Id N O C M — 0in0 V 'V CO n C .00 OOIq'I��:ONM 41 ON O O- 0 Co O CN 0 0 0 0 O ON M N O'O,O O O M 'O • • • N A \ - OODNO'Ic�Nry M — 0 — .- .- - O L- 4- } NO w w w- w a w w O C. .- .- .- - .-N - } ii O H co as 0%1W — NO Q M'CON Go r- n N O O O M in M n w r N 4- } c . w . w w w + } NO N M �0 - M 0% 0% n c IL N ,0.7 co u 1- 40 Nr- N •-.O O04 C> 000 O O m O O W r � .-14T V00 .O'N O' . E } h c + . w w w w w 0 .0 N — " C W M %0 •" M O CN O r C W C t o ND C+ CO et a O t- Olto — OTO co n N O of BOO nMNO m } C% OO .-.OI rM CN r In M N NO Of` N M %0 — MON O 00 O — O `]c 2 '.t6On OO �� ONO N •-- OO — .-- -•- — — W m H L OM r- NO nIC% ON L N �•' 00 %0qC.ONNOONN 7 m 00 - -NONOV U O In w w w + + + + + SON — � MCOMN O M C t MON M 4- — .-—[1 - - -M NO. co _ 0 O Mfr r %0NO n Oa NN Q•NM N -Kr - N 1 O r OO 'O%0N OO . . . . . . . . O— W CD N U +- M L E . NO OD n n NO O w " ON 0 — .ItnMM MNO O Nr, 0% r-CIM O OO 1}A } M0N w w . . . + w {- OD M N ONO—N CN co ON - 7 OO CN NOrOnetN '•t W •- NONr —rNN N OO t M WO Of- 'WNOW 'qTN N • . • • v- w w w w w w t N } m W N 4- CNOM OONO N — E r- C4 ONN Mnk-% q*W— IV NO .9-- W . -:OD NO :M CNM� nNN0 W%C4 W C . N y NOD0% MCI N NO NN— NNNNMIO �Vnr V' MM � 41M a m H . t m X _ >• m Ol COC• O — NM -WUN%0 OO ONO .-NMan NO .O 4- N ID r rr. mw w 00w W D n nCOO000 w w {- IO — m Ot OD aoOaD OG . � a GN a °8N oN°c�rn oN oN aN at GN rn oN oN cN rn oN m � o� MILLIMAN 6 ROBERTSON, IMM—CONSULTING ACTUARIES Exhibit 10 ., Page 2 of 2 N O " w O u1 }N 4-0-- O O m %0 co O O r oI r o x io W IL VIP co re: {- 00 Ln O O .- CD I- O O N 0% O O N p O •- w C) -it %o `° t Ln 0 0 :< coOl 011 %0 00% O O �.� w CCD � b �� {O- 0� O O O • • • • C ♦ ♦ r r- r r O . w W Q I- NM } CD N CO Ul N O 0%N W ♦ O N ICOM + CND O O O fa Ou CO �o I- M O O O .. 4- c o cw W o: Q' N 1[%M 0% NM .- M M N O�I- Z cc Ln0� +- Iq OCn0N1 I� I- :>. OD I-CO CO 00 O 0% 0% m 0% mw - r` vv0+ Ch K11M CO Ch Go:I= } N %0 %004 d b �M A N O 0 cc Ni 0010 O a w %0 I-M O MOT , U ftft Or CO b 00,, %0 O O. 00 O0 ak br-MM N .-. .-.00 O O �O f�CO '0 w m 01 CO 0%O .- CD 0% O .- m 4- a n n aD CO .. I- I� CD o 4- .0 1- CO O " p a, �� m C % 0^1 001 (7 N U MILLIMAN 6 ROBERTSON. INC- CONSULTING ACTUARIES Exhibit 11" " Page 1 of 2 k NOIMa00% u1OM IttC IO , N M 'T O %0 O I` M %0 •S.' u1M a0 �Y f. } OOO O co ;'Rt I- O fn N In O N' MMMOI %0 � .-- - } w 0 OI CO 0% C) L ^ I` N r %0 O- V -- tD Itt C3 C4 O at a r %0 IO u1 0 L O) ft . . . +- M OI OA I` OI a0 O in W � MOOiN MIO v- 00000. O U-% 7 � •-- N N OI ul . .O Ul L- 0 O w } ON �ON04 W M M u1 ul W% `�- I0LnNa0 a0 O nM , ON I-zr N • ft ft ft • + } n IO O O u1 %0 O O W% a0 r-N O OO •- OO Cl %0 tD u1N OIO .- O CO Ln . . . . r r r r r IO •- W GIGO %0 MOI O00% n fD " C% a0 IO a0 a0 -it O in IO 0 O r` I` W% N L - -� i- .- rte .- P. et r- fN } U\ .- .- f. N ao O •- .-O O O n t0 co W b9^ N .O M ap 'T 1- ul Ol M O M cl 1%0r •- I0•- N %O ..} \ InM U.1OOl na0 L O . . . %0 %01n N %0 U IW% GONnOl 0:;c; 0\ 4- . ti - N O C� .-ul 'V N IL IO +- LL m } C U) .- < W E-- Oc 0.L C� N %0 O 1n f--M v In O W } N .LLI VOA% Ou1CD CD V b � L O I` IO 01 W a0'M Ol N In > X Ul 7 O 0 OI M OI Ol O M M .-- .--N N •- �•- � N m WCD Ntn MN O • . . . • • • • • 10 C vv v I- I� hI� %oc% t N O W Ill C } cc w O. LL a- OIt W n %00 b %0 Lc% VV'Ln NO Uc > : .:O0% M +N ft O 0% M OI In -Rr .-Ol I- In W Y! .- kO %0 IOM WM W% +- MNNvO Mao %0 Q a0 [AC% r- w01InO I- •--NNMNN N W L J - %0 %0 to Ins* r- •- M at fn • • • • • • • • f0 Ul . . N . . . . .- N > O `9 cu m I• N � UNN � a WW ko �O O — N O N •0 M O In In r�ap a0 O aO _� } I` .- O IO N 't M %0 Ol 04- M r natU'%V %0 W b W ^ NNMMMM V M a0 — . ;f W In V.V M In a0 OI .-...- .-- .- M U 4- - 0— O I- Nf- st OIN In O W%(D 4- m N OANI, N Ln %0 O O a0 aN %00 in W% M Ol ul}. N M 01 04 r- v Ul N +- 'Rr . N W% , Ul, 00 CI In W ft ft ft f ft ft % IO f- v l0 u1 f�W OI a0 M G E CIA MM r- V In aO .-- .- � � � � � .- .- n m} W% M M N N M v � � 4- m N tD O In M r- nm O ut +- mbo%0w l uMn N1b O W% 40 Nin CD 0 Ulw Nom •- InO+ f� lOa UN . • • • . • . . • PNX%010I- IMN11n f0 94N"MvMVMM1� M L 0 :: ..: m p O Of 000% C) ,N le% -e n%O fD 0% a N M V In %0 0 +- Iq v W n.n a0 a0 a0 a0 W a0 ao r` f` alp ao ap aD a0 aD w +- W « — 0 m I-a10 �� - NMT I- 000+ � .1-N10% VW%W _ s a r- nra0a0wa0 Wa0 nG; 1� a0aDaOa0 W O1 0% 0% 0% 0% 0 0% 01 Ol CA 0% 0 0% 0%0% Ot m MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES Exhibit 11 Page 2 of 2 N %0 O O M } rn rn i- 0 N E Cl N M O ICN O .- m t to x to w W CL M' 0 +O � o co as rn o o . N %0 O O •- W M N N0 W% CO + + i- CN N N N P'OI 'O.. ...._..:...:; ,. + w t0 � .- O W M Net i40 N U- Oz r > O N O O 4- ICN ICN O •- O r- •-- C w + + p7 Q •- •- :;;.j .O CA - K U > W Io N N OA co (n O ILS W% Iii - O + + + 4 O ICI OI N %0 C� vvq O a • 4- M O N %0 O nOI I- a c OO O 0- c w c4LLI SOON J 0+: O ICN ICN OI - O O cc M n0 } 000% O Rt at 10 00 00 4 1 W ICN CD ICN O - NIOCaf %0N000 } MM n i7� lqt CLO N N CO co N O O O O N Ml4tICNM r- 00 00 r .- CDNOM -Rt PN1UN O %0lqt%0 M N N + + • + ICN N R C0 � 01 N0 �b %0 OOOOI O N MM "tM %0 O m v > Of O'OI O . A n 1� CD ao r I-00 a0 +�- W .. m 79 r100 I- alo o+ o o^irnrnrn arnaa m H U MILLIMAN 6 ROBERTSON, INC. CONSULTING ACTUARIES Exhibit 12 Page 1 of 2 O M CO O- N coOOi O n �D O NM1n {O� tim %C COO Q O N a' O '-It N i0 ^ O rn Cq 404 M M U 0 D O CO .- M %0 O %OMOMO O � OL t 0) 1` ♦t M N N f"' f- O �O O M .fn a. . x aO ^ h ^O O O O O CO O 0% Lu a- jr OCD st At t` M Cl t0 st CO fn V fn — 04 N M44.41, m N 0% In 01MMr O MNCAO^ - CO •- ON t0 C% In - '+" •t CO iii"'SSS Om IRr N M L %o C44 Wn O %OM ch 0% ^ O+O O ON O ♦ ♦ . . CO tr • • • • • • 4- (� ^ f� 1�M O� v 00 0^ O U ^ 1- 0 OD C4 ^ to Mss►^N N to M }m. . Ns CDUNUN - - O %ONMO^ ^, CO tot O ^ %O r01 %0 4- MON -W An •- - fes m M Cb Ok M O M CC (D C% O.Os O C-4 4m 000OON1n" 104 %O W 41 etN,r`.^.PN O M ^ MInqrM qcr O+ c \ l4t40 r- so %0In } O% N -Ir M^ O .O r " a O %0 N ^ -V r %0'N CN 0% f- C% O O Q " O C% tn COM 4'1011n lq;r -W M 00C) O L- 0 L MNN-NMNM7 4- p7 LL. LL- 4.04 W a m 'C M W W ^•t N O O ` O, O"O% to O�.f`%0 M .O - 4- '• 4- 4. %OCn ^ n %OO.N } NM.W% OOMOM f` u1 C %0 in a CA M %0N %000^ ^ OAOCn�•O+M► . Q Q E . O V W ♦ w w w ♦ aft O • • • • • }^ U ^ N 1-1 nein mw4m C% wN M ^O •- O ^ O^ O- ..i a O O NN N N N.NM; .. --: L Hw. imt c oCD x lai w 10 ^ etOnr` N#A %O 4- MON 01"* 00% 0% st N ♦ ♦ ♦ . . ♦ ♦ M0% 0% QW O0% 0% O O C . Z N0000 ^ QCO ^ a M • • • • • Of-N OCnm to N ^ OO ^Q 00 NNNNNMNMCn N L NN ^CO QOet U h. �M Ot O% W CO N N O M N N O CO Lm -W m M C N ' .COO LL1 N } In w N CO O N 0I N CO fn O ♦ . . ♦ . . % OCON O- -NMN N M _ :� ^ N aaCW 01 Cn Lr CO • • • • •- • • • • • . C% Mr�NMNN � ^ 04- , O } } Inmrf rnQ ^ •- onN O C� -WM COM MN (A 0% 41 QNQQCOO — MQ 4- %0 In < In^^MOM W1 .- vNrM v ^ U%N M ^ O T%O �N ^ N CO L ,. . . ♦ ♦ . ♦ ♦ . ♦ C4 . . . . •, . . . OO 1` MIONO MN ^ ^ ^O pN ^ NN .- .- MM 4 CD - .00O %ooNvnrn �` o E`"...;.. In-f-.V 0% in— M m } Cs • • • • • • • • N . InO% QCO •-OOV �O NNMMNqwM + m ' .-C NC4 COQ ^d. gym:::. .' M - > m .. V! w m O NMgwIn%0 m }.. . r- CO OO CO cow CO Q 4} a D) 0 f�co10 � � N in 'Rt I- OIO � ��N K% 4t L1 CD .7' : O�• F� O . (A C% 1\ sa %C000D CCDO nf� CDCOCOCO0O E ..Z) at O% Ch at O% 01 O. Qt 01 CIO 01 O% MILLIMAN & ROSERTSON. .INC. CONSULTING ACTUARIE6 : . Exhibit 12 Page 2 of 2 N N N 01 w O 00 M t A O O {- CD E O O — (V CD O O .0 m N O •- •- L 01 1.4 x 10 W D_ �D O CD +ft Go ct O O 40 C�l (V C0D O O r O w v °r° O 0 0 04 O o 0 v •- 0 0 0 w (0 tOiOO � � ll O . T \ cp .4t O O O O O 404 a c/) to 0 O 10 W� In } st 0 _..O O U y + + C CO , O O N 00 (7% 0 — qq* C• O O O WO O (0 0 .. L. C J W,N O . Q O �-+ W cr ix 04 in tn M n i0 n1 - q1tO0 O O 00 + + + ms OOCD O O DOOM co co 0001 O O X %0 , n M —N O w ON1W% 1- UN 00 �(. 4- Go (A atO 001 001 qw b 0 01 1. 0 0 O O M\ —fV N w M O 01 01 1-OD CD %0 O N O C4 r O lqr OO 1- n M t O O Q 1(N 10 Q + + + . O O 01 01 01 01 NMI- M • . . • ' et 10 •- O 10 O O O O W^N M N N 1 m 4 n^ COD O^O nnGOD OO ice- q . CD r-Go r- Go 0% 0^1^^ OO1 rnrn^- Ok z MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES Exhibit 13 Page 1 of 2 •99 ON1 CODs Or O NCONM O COMdOO• } I` ,N co d U"% t?? . . . . . O O O O O N O% h %O ,N O . . . . N OdcoNM ip M w.- .- NN 0 O d ^ CO � � � co DO : N% m -gt N d m ICl OD Cl CO i- I` O N I- M %0 M YI W O_ Ir ANN f` tc1 d O, M CO O N tc1 N W•- •- NN O {- U l0 OM CVMI- CO `�- I` d O IV CO %0 O n CO N M M -%0 N OCOMdd �O } C[ C> , C140 =%0 N 0 0 0 0 V UN COON O CO CO ..� OC4ON � N N d r- I .--•-- U w � m N tr I'- OCdOd _ co W% r- UN r- W% - O %0 N N U*%to O N L COMCOCOM1tW1 }. MadddCO .r- N } . n . . � O .- N0 0 0 O u1 NMO% — MCO N -• • • v CONNOCOOC. er . C%4 O w N co � L O O M co d lr�00 a, C) d'OC OOONOd M t[1 U .. %00 %OO1w CCOO r0OO �M i0- ddM l`I` M - CO Q . W NOdOM I[1d O > O dOu1f- Ind M . . . •-� •- � f' O 4- m N L m } 7 Q w IL 06.0 '.' h O — L a) m N TWO copeN1CN0� 'O M i, � dP r-W% N m X } } N COO ul MO , W% } dC0N C0W OOC t[1 C0 > W ut O O U C + + . • + • • N ,, ,O , O m O v J X w �C�OONto W%Cp M •In - .•- •- . ^ . N O c C14 to VI c c L O W 1w 0MMN t* CO ' Ob � NdMCON O OdC� UN kl% n O� M 10 tff F- . % . . . . . . . 4- W% OC CO I-CO M N O OC 0. m Q ILS CO d O '.f %0 N C M OO N NN AT N. J ODI� OC •-N N CO d d • • • • • • • • • m to O N N > O w - — ® }N m — 4- °OWWvIInn ,eMvn E E 0CI� 000O40M000 O NN NM •-- O to 0% 00 } I'- %0 LL1dMO% 1- O� f- f- U } C0 1- OC CD I` M C0 V N O N N N N N N — $0 C0 CO O O O, d CD CO C4 • • • — 7 w .- o L O N rnoOdMlrNd %O 1-t at OCdCOdOC CO 1- O OCNCONI> Nd CO I` O in 4- a r0 OI0 I`O o • O OC - CD P CO �Od 00 00 O OC E On V% o CO N • - C4 M V LL1 f- Itl 1� CD Q• •- N •-- ^ N .- It1 m 4- 404 p L 0 N m L 4D %0 l.MNOI- } .- Od (DInO L UN H� CO CO ACO CO Q• 0 � OMOtO GOOD - co N 4- NO .i� %Gu1MNC0 •-O O f- dt[lf- O%.- PM . CO OOCOCMdCON MN dMMMdd f- m .-..- � �N •-N � O � . « L m X (D m y m U O) CO OCONMdIn %0 OOOCO —NMdM %0 m } Na A f�t� O cD CD CD CD CO CO 1� f�m CO CO OD O CO CO } a - _ O + m f�CDt .l-NM � In t� ChO� �•1- �N�ppM � 1n v 7 LLOH�«�H a Oot Oni010�% (ACh at TatCA00% (A 000%% 0% A 0 `I MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES Exhibit 13 Page 2 of 2 N M O O cc n } } CD + N 00 L O m N L O w W 0_ In O _ 4- er O + 00 00 O 'ct N a 00 O 00 O N O •- w - M .- In O% - M O O a et a1 + + } O O •- M M O O oil OD WN %0 N •- O% .- %0 w 00 O M %\ 0 0 00 O u O W% •- M O� O% L 4- O O O •- U- + + O O O ! O M O 4L.- OD N � O% •- oo� -- ¢ w C) N V W W - N oNp .pO 00 ^ � } M ^ N -C' D00 In %0 w 47 .lW.. 0 'Q N UN 0% O •-- } c 0..LLI w C O Q N %0 N O N O O %O J 0% 1- O } O 0% O LN Cr + + + 000% O O% I O CO CC • . w O% O% N I[%%0 n %0 O O O N 1- %0 1� O 0% } %0 O M M 00 , 1, N In u% 0% N 1� N r- N w %o Go rn v 00 % 0 OO0% %0IM , V � IA 0% O O %0 • • • • • • N -qr 0% q1t %p .- .- O - •- . N N w N ID tw . O) 00 O% O 000%40 0 4- 40 1- 1- GO co 1- 1�O OD 4- W m MILLIMAN 6 ROBERTSON. INC.. CONSULTINO ACTUARIES EA[blt 14 Page 1 of 2 etMN' OOO atInr- O N OU ;. " rOO ^ res +_ st OM O r- O M 0001 f� r- t00o O O O w w w + + O � N r- 04 , N N %0'-ct In 04 ^ MO ^ I 0 - p—.4 U }^ 0 - 0 Xult V' MO O 01X0000 M N L L O MOOOr` } ;r 101000 O. ^ d X 10 f- 00 tO 1- c co Q000 O O W O.. to w w + + it U %N — 10 00 Un O ..} wl N N N N v m to O O •tt Ucl •-- N stOOOn lqt O w 1-000 O N UI N 10 O t0 n V' i- 0p M O O O O I L + 4 + + + + lq O 00 0 0 0 O O O tO%NNNN01 l O ^ ^^ ^ U r- t0 W w . 0 � 1- �' ^ {m 00 .. MOO • 00 +t O O stO NM O W% r- (0 tio CD1 04 40 r- -00100NOn - } N 10000 r v In m _ INw .w w w w wM Mf-O 01 O O w m L } 0c0 . MOO � OMDMOMo O 00000001- �' N C \ Nt00 ^ OIW10 OO QOO ^ 1- a p w w w w w w w ^ 0 0 0 0 0 O O Mf4n MM•-,Mt0t0N . . . . . . N > \ fn M N N N 0% U*% L } 10 O c m w 4- 0 Ulf40 0 1[1 (0 M O t0 3 cOO O 4wt O OO UU1 N O •- M O 00 0 N ^ N %O 4- 4- m M •-'v010 ^ t0 i- n MOO NO NM N 0+ cf` N H U C + w w w w + w kc .- 1l1 01 01 O O(D O O 0 .O > W 00r - +t UOrM O tn . . . . C� L. U) N %ONNNOU " M 000^ N ^ d} M N c W O .0 W > O c p UD W O W LL11-M W% •- Mf- W V C..) m MMOwO Ugn0% COa i O f- MN UOr- MN U[1 01 O w w w + w + w w } M N tO I- I� O f� O O M CN f- 00 . tc% M %001 t0 c 400% 0101000M O O c Z 0410NNN01Mf- -cr M . . . . . . . — ri N .- 0000 ^^ ^ � L CD N L 000040104 on 'Rt - 0 m (010001001 qr N U N 10 OU N t[1 to ^ r W% O � M M 1[1 r- 10 mr C N CC N01MMNfr14T01 t0 00 O a1 N MM It N 0% r- v 0 n C% CDO M O O S ^ N N 'Rt NNN0% In M eA W U }, 1_ E 0 — C> .-_n 00 N f� O 00 {- {. O 00M 01OAnA QN O f- NNNNOwt f- 0o OO Ulf - 00010 ^ 1010 U!\.-- } MNO10NOV M U[1 In - 7 + + + + w w + + O %0 00 101 O M•- 00 O Mr-Ct M n N • N ,O+ N • . . . • . `U- N10N WN14tM10^ ^ 000•- N.- O ^ ^ 0 O .- L W } !n m H 0 1- } rOO OU 00 NO^ O N E OaU[1M01101 � Q Ic% M � n L^ 01 1- Un U[1 101 4v 10 co - 4- • . . .. • . • � N w w w w w w + w N ^ N N M 4- 0 . .1� 00 O O N 1` 01 M 10 C4 C4 ^M ate. .. L{- m X v > m 0 01 00 M O .-N M Q 1a1 10 lD 01 O •--N M •tt tO m } $A 4 rr-0000Go0000O00 1- f- 000O000000 } to m 0 ncIO� � .1-- NM -it r� 01001 �.1- NMS U[\ �. O O nn1� OO �p 00m00 f- f` n000o (0O0o00 E y OU 01 a 01010101010• 01010101010101 a 01 m MILLIMAN ROBERTSON. INC. CONSULTING ACTUARIES Exhibit 14 ' Page 2 of 2 N — v- O i-N m N } CC O O X 0� : co O o w d %0 0 w INN 4- 00 0 0 0 + N 0 O O O %0 0 w M M O %0 O O � N 4- O O O In w .- - -T %0 W %0 co In C3 in 4- O O O O Mc r- (N 00 O O W% OD c OI — — — •- C m of IO pO7L .b- U. N coif — N I- MO O - MO O O U L N N N 11 } O O O O mN + + + ItA > O W% CO f- OO — — — — ocp p w (J O: - Z , ON i0- MOO O O 00 LC% NIC1 q OOO O O + + + CO . . M OO f- f� — W �O W 0% N n a t O— O O O O f� — W% CO 0100 O O . N f-- co f� %0 — '4 %O — N OI M O O MOO f- - O M00 CI — M UN OI } OO W%O 0% OI O6 — N t « > O) OO OI O .- .. 0 f` f` co co f- f`co 0 i- q f: codo r� codo Gni � ct 00% ._ 0^i a as � N U .. MILLIMAN 6 ROSERTSOM INC. CONSULTING ACTUARIES Exhibit 15 Page 1 of 2 { n N_ M M M st CO C% rel f cocMOO MO C4 (j ZC Cttf1MK1N O ONOO Mw •- ^ NN iO N O O 0 Ct .-- Cot IM O Cx At O Ct O t0 M m m Cx CO t0 M i-- tO , O O O O M UI ♦ ♦ ♦ ♦ ♦ 0 O OO OO O I[1 7 Lu a- � '1M M KN '7 . . . .� M •-.- N N w L- 0 O U rn �t1 W onmINLL1O O C+ OOMM Ll% w LA .-- CO Ct M } st O 0 0.N1 O M K1 K1M KIMN CO 000Ct O M } Nr -� NNN O UO w - m to Ct 40 UN O CO O O CO f- r Ill r- C . .- .- CO 7NCO f- OOO OCO tO -it M t C4 q wi In N•- .O tO w N co L O 0 In K1 M n M io 0% . . O 0% O O O-N'CI I[1 � V .. tO - O C% �.C%M N O O O In tD M M IO . Nom'-CO •- it %0%0 C,4 N OOOO O O �. O r-K1 M M t0 0% .4, M •- •-- i-n O _ 0 C CJ u to O ^- t0 ; N CtM • •-K1NCt O COOO vO r-W% Ct N m X f- tD N N 0% ,O et M Ct f- %0 CD O N M M >W I; N — O t` •- OCONnN r` OO OO n0 O > J ♦ ♦ ♦ ♦ ♦ ♦ ♦ - O In • • • • • • • • V C C� L m W% rn N %O'CO N p M N O x., f W (L O C L O _.. w � ill tO V f- O tD O V t0 O O M •'- O M xO Ox r- 10 YI F- V at Kl CO CO 10 N'f- f- M O O Ct t0 M N D.0 ♦ ♦. ♦ ♦ ♦ ♦ ♦ ♦ 0 t0 O t0 O O .- Q N J ^ CON �u01M N N . .. .. .. > O w t� W m .i; ^fit 1[01OGo Na M...' O COO W% MM MMO -it M E . O Ct et O'N1 O qv r— f- I- f- M M1 O CD N O r- U } ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ r-O •-O .t, O .-- CO JK%N 0 O V'tO r" Q izi..'; O • . • • • • • • • — 7 . .NMM • . .. .. .-. N N W H U 0 L O N f- 0.- ('', OD f� 1- in OD r O i[1 Q• : O -q* . O CO O O N_ v Cx t0 IA f- N aMNqta V 00UN1 } NCD•M- MMn1lN � r C E - 4 ♦ ♦ ♦ ♦ N N 40 ^.4.0 fA 00 ..N •-- N � .- .--� N.- .- .- Vt b f- 0 cn 49 .-. � NOOOCOCOCCOOb0% O.-OtDM rn : N stMnvtclNNf�..;;. O OO-�COVOtO 0 Nv- . . at4OwnNO •�O f • • • • • 0 .0 C. « L « j m U . 0Ol CO 01O •-NM V K\tO - OMO .-NMet K1 to m ll{- IV...., OI f- r000OCOOOCCO.OD: rr-wwmOOOOO 4- ID — 0= L 1 1 1 1 1 1 1 ,- 1 1 1 1 1 1 1 0 1- 0D � � .-NM -M; hCONM -T K1 7 01`7 2 ^ nrGOODOODC�pp.OD f� nr-OCOOcoGOIO E O OCtOt01MOt01OtOt. . 0% Ot000. 0lCtO0t 0 UU .--•-- •- •- •- •�'.�. .-.-.- .-.-.- N c �-�MILLIMAN 6 ROBERTSON. INC: CONSULTING ACTUARIES Exhibit 15 pj Page 2 of 2 N O t „ .N a CO O 0 +- 0 0 x CO 0 CO N N W d Q O w CN 4- O p O M c co co N O O N w A N O �o %0 N O OO. 4- O - .- Co N t I' 00% .-- %O w CO \ O t� M \ _ (A CO L i- O N lL O ul O O O N > p . . O C m N -it lqt it p�p L. a wLL U W N W 4- N N pO M> 4- C• � U L>. O W% N co O O O N C) p 00 . . . mt L > Q rn C3in O .- +- n w CQp C> > J , Nr , + 0W% 0 O ft � CO 400 O O O O N E3MV' tl � r w n r .- O .O O u1 O W% -it cN u1 MCO Coo 4- cc 000 O N N M COM b r- '-* et M N w v .- W% O �o CO +- to ,O CD �o M °0O°O°: CS%0 0000 a w ID v 09 CO Cm 0 .- CO ON O 0 4- f— r- Go Go rrGoGo rrG,oco +- a r Co at r- i CAm0% at m V MILLIMAN 6 ROBERTSON. INC.-CONSULTING ACTUARIES Exhibit 16 Page 1 of 2 Contra Costa County GENERAL LIABILITY INCURRED LOSSES AS OF 6/12/86 Coverage Months of Development Year 12 .24 36 48 60 72 1975-76 E $ $ E $ b i 1976-77 1977-78 842,907 1978-79 463,911 4970,372 1979-80 893,513 891,460 8430446 1980-81 4850348 581,528 694,039 687,585 755,815 8230496 i; 1981-82 843,427 1,1540128 1,377,078 .1,6220588 1,427,491 1982-83 102800065 . 1,7560305 .. . 20,830,063 3,2890537 .:.,. .; 1983-84 494,532 528,832 7490422 1984-85 100080025 1,194,632 1985-86 474,643 Development Factors 12 to 24 to 36 to 48 to 60 to 72 to 24 36 48 60 72 84 1975-76 1976-77 1977-78 0.979 1978-79 1.050 0.988 1979-80 0.998 0.946 0.905 1980-81 1.203 1 .193 0.991 1 .099 1 .090 1981-82 1.368 1.193 1 .178 0.880 1982-83 1 .372 1.611 1.162 1983-84 1.069 1.417 1984-85 1 .185 Selected: 1.354 1.210 1.154 0.992 1.070 0.957 Cumulative: 2.046 1.511 1.249 1.083 1.091 1.020 1`IOIE: 1. This exhibit shows the historical incurred loss development factors and the selected factors used to produce one of the estimates of ultimate losses shown on Exhibit 8. j ��MILLIMAN 6 ROBERTSON. IMG CONSULTINO ACTUARIES Exhibit 16 Page 2 of 2 ' Contra Costa County r GENERAL LIABILITY INCURRED LOSSES AS OF 6/12/86 Coverage Months of Development Year 84 96 108 120 132- 1975-76 $ $ 1190409 $ 119,409 $ 1190409 $119,409 1976-77 107540456 201110117 202189697 20218,697 1977-78 824,857 8190099 8090108 1978-79 -491,614 ~- 472,001 1979-80 7630190 Development Factors 84 to 96 to 108 to 120 to 132 to 96 108 120 132 �Jitimat� 1975-76 1 .000 1 .000 1.000 1976-77 1.203 1 .051 1 .000 1977-78 0.993 0.988 1978-79 0.960 Selected: 1.052 1 .013 1 .000 1.000 1 .000 Cumulative: 1.066 1 .013 1 .000 1.000 1 .000 TING AQTQ MILLIMAN & ROBERTSON. INC. -CONSUL4, Exhibit 17 Page 1 of 2 Contra Costa County GENERAL LIABILITY CUMULATIVE PAID LOSSES .AS OF 6/12/86 ` Coverage Months of Development Year 12 24 36 48 60 72 1975-76 S. 10534 3 23,700 E 43,755 $ 73,658 E 870,451 $109,382 1976-77 14,672 82,739 100,107 147,538 3808081 394,666 1977-78 33,068 8%213 132,184 2080094 330,617 550,907 1978-79 47,872 118,719 1730457 257,426 409,811 430,272 1979-80 -39,215 167,675 378,984 508,288 654,710 729,946 1980-81 440998 . 158,778 . ' .292,789 419,735 469,315 741,996 1981-82 . 819227 211,,828 -. 484 578 ;698,588• 971,491 1982-831 1040665 :347,155 8190463 ` 2,2370337 1983-84 970607 241,782 3940572 1984-85 98,275 _ .259,832 1985-86 71,293 Development Factors 12 to 24 to 36 to 48 to 60 to 72 to 24 36 48 60 72 84 1975-76 15.450 1•.846 1 .683 1 .187 . 1.251 1 .092 1976-77 5.639 1.210 1 .474 2.576 -- 1.038 .1 .228 197.7-78... .2.577. .551.,", .: 1 .574. 1 .589 ; 1.666,. ,.: :. .- 1 .40$ 1978-79 2.480 1.461 1 .484 1.592 1.050 1 .026 1979-80 4.276 2.260 1 .341 1 .288 1.115 1 .004 1980-81 3.529 1.844 1.434 1 .118 1.581 1981-82 2.608 2.288 1 .442 1 .391 1982-83 3.317 2.361 2.730 1983-84 2.477 1 .632 1984-85 2.644 Selected: 2.961 2.031 1.573 1 .371 1.284 1 .115 f Cumulative: 18.847 6.365 3.134 1.992 1.453 1 .132 NOTE: 1. This exhibit shows the historical cumulative paid loss development factors and the selected factors used to produce one of the estimates of ultimate losses shown on Exhibit 8. MILLIMAN A 'ROBERTSON. ING CONBULTINO ACTUARIES Exhibit 17 Page 2 of 2 Contra Costa County GEN RAt LiABILiTY CUMULATIVE PAID LOSSES AS OF 6/12/86 Coverage Months of Development Year 84 96 108 120 132 1975-76 : $1190409 $1190409 $ 1190409 $ 1190409 $119,409 1976-77 484,456 4868117 2,2180697 202181,697 1977-78 775,857 7790099 794,108 1978-79 441,614 447,001 1979-80 _ 7330190 Development Factors 84 to 96 to 108 to .120 to 132 to 96 108 120 132 Ultimate 1975-76 1 .000 1.000 1.000 1 .000 1976-77 1 .003 4.564 1 .000 19.77-78 1 .004 1 .019 1978-79 1 .012 Selected 1.005 1 .010 1 .000 1 .000 1 .000 Cumulative 1.015 1 .010 1 .000 1 .000 1 .000 NILLINAN 6 ROBERTSON. INC. CONSULTING ACTUARIES r Exhibit 18 f Page 1 of 2 Contra Costa County ED 1 AL MAI-PRACTIC INCURRED LOSSES AS OF 6/12/86 Coverage Months of Development 12 24 36 48 60 72 1975, 7 6 1976-77 1977-78 $2,379,522 1978-79 $ 8570868 900,753 1979-80 310280,564 106480090 108790183 1980-81 38221158 $ 9320831 $1,1330581,* 1,133,581, 10376,487 10411,171 1,2760250 1981..-82 416,023, , 1,141,370 1.8,3351,989 2,097,924 2,8410164 1982-83 ,� 332,227 �--434,063 �260;689 237,229 1983-84 5020414 9090761 : 1,579;866 1984-85 2960541 4530588 1985-86 1220087 - - Development Factors 12,tQ 24 to 36 to 48 to 60 to 72 to 24 36 48 60 72 84 1975-76 ` 1976-77 1977-78 1.104 1978-79 1 .050 0.999 1979-80 1.287 1 .140 0.915 1980-81 1.135 1.215 1.214 1.025 0.904 1981-82 2.744 1.171 1.570 1.354 1982-83 1.307 0.601 0.910 1983-84 1.811 1.737 1984-85 1.530 Selected: 1.625 1.261 1:231 1.222 1 .031 1.017 - Cumulative: 3,781 2.327 1.845:;.:;: 1.499 1.227 1.190 NOTE: 1. This exhibit shows the historical incurred loss development factors and the selected factors used to produce one of:.the estimates of ultimate losses shown on Exhibit 9. MILLIMAN 6. ROBERTSON. INC. CONSULTING ACTUARIES t+' Exhibit 18 Page 2 of 2 n Contra Costa County MEDICAL MALPRACTICE INCURRED LOSSES AS OF 6/12/86 Coverage Months of Development Year 84 96 108 120 132 1975-76 4320495 $ 432,495 $432,495 $4320495 1976-77 $ 870718 1580733 1424,072 1420072 1977-78 2,626,668 2,745,827 20771,052 1978-79 8990764 890,111 1979-80 1,719,506 Development Factors 84 to 96 to108 to 120 to 132 to 96 108 120 132 Ultimate 1975-76 1 .000 1 .000 1 .000 1976-77 1 .810 0.895 1 .000 1977-78 1.045 1.009 1978-79 0.989 Selected: 1.170 1 .000 1 .000 1 .000 1 .000 Cumulative: 1.170 1 .000 ' 1 .000 1 .000 1 .000 MILLIMAN6 ROBERTSON. INC. CONBULTINO ACTUARIES ' Exhibit 19 Page 1 of 2 Contra Costa County MEDICAL MALPRACTICE CUMULATIVE PAID LOSSES AS OF 6/12/86 Coverage Months gj Development Year 12 24 48 60 72 1975-76 E 3,065 E 60133 E 140607 $ 4210901 $ 4220172 $ 422,172 1976-77 807 100,964 170362 228163 31,165 518646 1977-78 2,679 23,363 69,984 2,040,517 2,186,721 2,317,022 1978-79 809 14,355 310302 8410337 852, 868 8550,753 1979-80 3,934 290795 6950439 8220564 10145,090 105090183 1980-81 20158 320,831 253,581 _ 296,487 8110171 102260250 33,870 102 924., 10,124p664 °."" . . 1981-82:.,.: 1,023 78,489. . , 1982-83 10227 940063 1200689 126,229 1983-84 714 59,761 169,866 . � 1984-85 3,041 28,488 1985-86 487 Development Factors 12 to 24 to 36 to 48 to 60 to 72 to 24 36 48 60 72 84 1975-76 2.001 2.382 28.883 1.001 , 1 .000 1 .024 1976-77 13.586 1.584 1.277 1.406, . 1 .657 1 .147 x 1977-78 8.721 2.996: ` 29.157 .%072 " 10'060 1 .079 1978-79 17.744 2.181 26.878 1.014 1 .003 1 .040 1979-80 7.574 23.341 1.269 1.297 1 .318 1 .033 ® 1980-81 15.214 7.724 1.169 2.736 1 .512 ® 1981-82 33.109 2.317 1.311 10.927 1982-83 76.661 1.283 1.046 1983-84 83.699 2.842 1984-85 9.368 Selected: 26.768 4.756 3.694 2.779 1 .325 1.065 Cumulative: 2313.007 86.409 18.169 4.918 1.770 1 .336 NOTE: 1. This exhibit shows the historical cumulative paid loss development factors and the selected factors used to produce one of the estimates of ultimate losses shown on Exhibit 9. -MILLI MAN & ROBERTSON. INC. CONBULTINO ACTUARIES " J Exhibit 19 Page 2 of 2 i Contra Costa County MEDICAL MALPRACTICE CUMULATIVE PAID LOSSES AS OF 6/12/86 Coverage Months of Development r - Year 84 96 108 120-4 132 1975-76 $ 432,495 $ 432,495 $ 4320495 $4320495 $4320495 1976-77 590218 1080733 142,072 1420072 1977-78 2,499,168 205430327 205710052 1978-79 889,764 8900,111 1979-80 _1,559,506 Development Factors 84 to 96 to 108 to 120 to 132 to 96 108 120 132 Ultimate 1975-76 1 .000 1 .000 1 .000 1 .000 1 .000 1976-77 1.836 1 .307 1 .000 1977-78 1 .018 1 .011 1978-79 1 .000 Selected. 1.134 1 .106 1 .000 1 .000 1 .000 Cumulative: 1.254 1 .106 1 .000 1 .000 1 .000 MILLIMAN 6 ROBERTSON. INC. CONSULTING ACTUARIES Exhibit 20 Contra Costa County r. FITTED SIZE OF LOSS DISTRIBUTION WORKERS' COMPENSATION Probability of Average Cost = Size of Loss Occurrence Per Occurrence E 501 - 1,000 .266 E 716 i 1,001 - 5,000 .451 2,300 5,001_.- 10,600 .115 7,054 10p001 - 150000 ., .048`:_ : 120222 ' 15,001 - 20,000 .027 170295 20,001 - 250000 .017 22,337 250001 - 30,000 .012 27,364 30,001 - 500000 .026 380440 500001 --`1000000 .020 690463 100,001 - 2000000 .010. 138 287: 200,001 - 250,000 .0020 223,016 250,001 - 500,000 .0036 3430620 500,001 - 750,000 .0010 6050621 750,001 - 1,000,000 . .0005 `` 8600822 Over $1,000,000 00009 20449,388 1. Thisis the loss distribution .used in a. Monte Carlo simulation system to estimate confidence levels for: 1986/87 workers' compensation loss estimates. `u p :'r:= MILLIMAN 6 ROBERTSON. INC. CONBU*LT IN0 ACTUARIES ' Exhibit 21 Contra Costa County FITTED SIZE OF LOSS DISiM BLITION GENERAL LIABILITY Probabillty.of Average Cost Size of Loss Occurrence Per Occurrence $ 501 - 18000 .302 $ 714 1,001 - 5,000 .464 2,252 50001 - 100000 .104 7,023 10000.1 - 150,000 .041 12,203 :15,001 - 20,000 .022 170281 20,001 - 250000 .014 22,236 25,001 - 30,000 .0010 270355 300001 - 50,000 .0190 38,338 50,001 - 100,000 .0160 690111 100,001 - 2000000 .0100 1370557 200,001 - 250,000 .0025 22,885 250,001 - 500,000 .0020 3410704 5000001 - 7500000 .0010 6040,385 750,001 - 100000000 .0005 8590879 Over $1,000,000 .0010 2,218,319 1. This Is the loss distribution used in a Monte Carlo simulation system to estimate confidence levels for 1986/87 general liability loss estimates. ______ �MILLIMAN 6 ROBERTSON, INC. CONSULTING ACTUARIES i R Exhibit 22 Contra Costa County FITTED SIZE OF LOSS DISTRIBUTION MEDICAL MALPRACTICE Probability of Average Cost Size of Loss Occurrence Per Occurrence $ 501 - 10000 .051 $ 748 1,001 - 5,000 .269 20739 5,001 - 10,000 .167. 7,245 108,001 ..- 15,000 :. .,:< .099 12,318 150001 - 200000 .067 170356 200001 . 25,000 :` .049 220380 25,001 -30,000 .037 27,396 30,001 . -50,000 .090 380740 50,001 - :1000000 ,086 700151 1000001 - 200 000 .032. 1380947 : : , . . . .... 200,001 - 2500000 .010 2230045 250,001 - 5000000 .018 3420976 5000001 - 7500000 .005 6040402 7500001 100009000 ' "".0100 8590603 Over $1,000,000 .0100 10932,139 1. This is the loss distribution used in a Monte.'Carlo sfmulatlon system to estimate confidence levels ,for 1986/87 medical malpractice loss estimates.i_: ~--MILLIMAN & ROBERTSON. INC. CONSULTING ACTUARIEB , OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building Martinez, California To: Finance Committee Date: November 12, 1986 Supervisor R.I . Schroder Supervisor Tom Torlakson From :Phil Batchelor, County Subject: RODEO FIRE PROTECTION Administrator DISTRICT REQUEST FOR By: Terrence J. McGraw ADDITIONAL PERSONNEL The Rodeo Fire Protection District has requested a supplemental " allocation of $36,000 for the addition of one firefighter position. The request was made in connection with the 1986-1987 Special District Augmentation Fund allocation process. The requested position was not recommended for funding from the Special District Augmentation Fund at that time because the initial allocation of Special District Augmenta- tion Funds is restricted to maintenance of existing operations . Accordingly, the request for supplemental funds from the Rodeo Fire Protection District was referred to your Committee by the Board of Supervisors. The Board of Supervisors has not allocated augmentation funds to special districts to fund new personnel because the fund has proven to be inadequate to provide for existing service levels and the replacement of existing equipment. Augmentation funds have not been allocated for new positions because each new position would create an ongoing demand on the augmentation fund which would eventually absorb all funds available for the replacement of fire district equipment. It should be noted that, in addition to Rodeo Fire Protection District, several other districts requested supplemental allocations for new personnel in 1986-1987 at a cost in excess of $250,000. Because of the recognized inadequacy of the augmentation fund your board initiated action for the development of the fire district five year plans to identify new revenue sources to deal with the unmet personnel and facility needs of the districts. The Rodeo Fire District has developed a five year financing plan and is currently taking steps to implement new revenue sources. The new revenue sources should provide funds for any new positions deemed necessary by the District. The firefighter position requested by the Rodeo Fire Protection District would be used to provide shift coverage for absences caused by vacation or sick leave. The District had experienced problems over the preceding two years caused by extended absences of two firefighters who eventually retired from the department. During that period of time the District received additional funds from the Special District Augmentation Fund to employ personnel on a temporary basis to cover the extended absences. The District currently has one addition- al firefighter who is available to cover absences. The requested position would provide a second additional person for that purpose. � • .i We recently discussed this request with the Chief of the Rodeo Fire District and found that the District was not currently experiencing an abnormal amount of absences. In view of the fact that the District is not currently experiencing problems we informed the Chief that we would not recommend the addition of funds for a new permanent position but would recommend approval of additional funds for temporary help if the District experienced excessive absence problems during the balance of the year. The Chief stated that he could not agree with this recommendation and requested that he be given the opportunity to discuss the issue with your Committee. It is recommended that Chief Jiminez be invited to the November 17 , 1986 meeting of your Committee to discuss this issue with you. PB/TM:cm cc: Rodeo Fire Protection District Supervisor Nancy Fanden y