HomeMy WebLinkAboutMINUTES - 09091986 - 1.69 TO.. BOARD OF SUPERVISORS G9
FROM: Phil Batchelor, County Administrator Contra
Costa
DATE: September 9, 1986 County
SUBJECT: Actuarial Study of County' s Self-Insurance Trust Funds ' "
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & 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 RECOMMEN ION F BO COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON ep em er 9 , 1986 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 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: CAO-Risk Management ATTESTED September 9 , 1986
Finance Committee PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382%7-83 BY DEPUTY'
I