Impact
WARD: Ward
COMMITTEE: Human Resources
$ IMPACT: $308,881
Title
Approval of renewal with Georgia Municipal Association for 2016 Worker's Compensation Insurance Coverage and Administration and authorize Mayor to sign any related documents
Body
ISSUE: The city is required to carry WC insurance for its employees. This insurance coverage must be renewed annually with an effective date of January 1st of the upcoming calendar year.
BACKGROUND: The city is required to carry WC insurance for its employees. This insurance coverage must be renewed annually with an effective date of January 1st of the upcoming calendar year.
Currently the City is covered by GMA's program. Annually, GMA reviews the cost of incidents over a 3-year period. The 2016 premium is based on costs related to payroll and incidents between 2011-2014. For this period, the City experienced a decrease in incidents and costs, resulting in a reduction in the Experience Modification factor (1.13 to .85). In contrast, during this same period, the City's payroll increased. The increase in payroll offset the
decrease in modification factor, resulting in a slight increase in the annual premium (+$8,769 over 2015 premium). However, GMA has advised that dividends will once again be distributed early next year. While the actual amount is unknown at this time (due in Jan/Feb), it is expected to exceed the increase.
RECOMMENDATION/REQUESTED ACTION: Approval of renewal with Georgia Municipal Association for 2016 Worker's Compensation Insurance Coverage and Administration and authorize Mayor to sign any related documents