In recognition of our School Districts’ economic situation, at their Annual Meeting on April 22, 2010, CCCSIG's Board of Directors approved a $35.M rebate to member districts.

CCCSIG and member districts’ commitment to the overall health, wellness and safety of district employees, in addition to educational and prevention services provided by CCCSIG, have assisted in reducing frequency and severity of injuries in the workplace. Quality claims administration, cost saving efforts such as the “early return-to-work” program, medical cost containment activities and a focus on reducing future liabilities through closing and/or settling claims, which greatly reduces medical exposure, have assisted in reducing the cost of workers’ compensation claims. These combined efforts have achieved positive results for the employees and students in our schools, and allowed the Group to have the surplus funds available to provide a rebate to assist members at this time.

CCCSIG’s base rate will increase $.04 from 2009/10 to 2010/11, which can directly be tied to the Workers’ Compensation Appeals Board (WCAB) decisions in the cases of Almaraz/Guzman & Ogilvie (additional details attached). These WCAB decisions that affect all workers’ compensation insurers’ in California increased CCCSIG premium rates by $.09. Had these decisions not occurred, CCCSIG’s base rate would have decreased by $.05.

In 2007, the Group adopted a Target Equity Plan, and as of June 30, 2009, the available equity for this plan has grown to $19.4M, while this year’s actuarial study is anticipating it to increase even more by the end of fiscal year 2010. One of the primary objectives of a Joint Powers Authority (JPA) is to provide financial stability to its members. One of the ways this is accomplished is by using equity to offset unexpected rate increases, due to WCAB decisions, legislative changes, industry needs, market changes or unexpected increases in treatment costs (such as medical inflation) or other unavoidable causes that affect workers’ compensation rates throughout California. In light of the surplus available, and the unavoidable increase in the workers’ compensation rate, the Board of Directors felt it was prudent to provide a rebate at this time.

Member districts will receive additional information about when the rebate will be provided.

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