HomeMy WebLinkAboutMINUTES - 03101992 - 1.49 To- BOARD OF SUPERVISORS
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FROM: Phil Batchelor, County Administrator COt'lt!"d
Costa
DATE: March 10, 1992 VI.J
SUBJECT: Actuarial Study of County' s, Self-Insurance Trust Funds VlJ
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) Etc BACKGROUND AND .JUSTIFICATION
RECOMMENDATIONS:
1 . Receive this report on the actuarial analyses of 'the County' s
self-insured workers' compensation, general liability and medical liability
programs.
2. Reaffirm the goal toward achieving the County' s self-insurance
programs at the 80 to 90 percent confidence levels, if sufficient funding
can be identified to meet this goal.
FINANCIAL IMPLICATIONS:
Receipt of this report has no direct financial: implications. However,
greater funding is required to cover the County' s liabilities at a_
confidence level higher than expected value.
BACKGROUND:
An . actuarial study As conducted of the County' s self-insurance trust
funds as of the end of each fiscal year. The objectives of the, study are
to estimate loss reserves for accidents, that have occurred from the
inception of the self-insurance plan through the end of that fiscal year;
and to estimate the liabilities for losses occurring during the next fiscal
year.
The actuary recommends funding needed at expected value and different .
confidence levels. ' : Expected value refers to the overall average level of
losses estimated for a coverage year and approximates a 55 percent
confidence level. Confidence level refers to the estimated probability
that losses will not exceed the indicated reserve funding amount. The
actuary recommends funding at the 80 to 90 percent confidence levels.
Funding at' those confidence levels is important to protect the County' s
financial solvency , and ensure the County' s self-insurance programs are
fiscally sound and able to meet financial obligations. This actuarial
study finds the County' s combined self-insurance programs are funded at
approximately the 70 percent confidence level as of 'June 30, 1991.
CONTINUED ON ATTACHMENT: _ YES' SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMME DA ION OP BO D OMMITTEE
APPROVE - OTHER
SIGNATURE(S): _ YY
ACTION OF BOARD ON / APPROVED AS• RECG'!4mi ENDED >< 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 5UPERVI ON THE DATE SHOWN.
CC: g ATTESTED / 9
CAO Risk Mana ement �- -- --
Auditor-Controller PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY �.
,DEPUTY
M382/7-83 —