HomeMy WebLinkAbout[04b] Work Comp Premium ���
��.�.y,,���y.�,����N� Council Agenda Item 4 b
MEETING DATE: July 9,2013
AGENDA ITEM: Workers Comp Deductible—Requested Action: Assign the Workers
Compensation deductible at$2,500 per occurrence.
SUBMITTED BY: Administration/Finance
PREVIOUS COUNCIL ACTION: Annually the City Council must establish the deductible per
occurrence for the Worker's Compensation Policy. Over the past couple of years the City has opted for a
$2,500 deductible per occurrence. The Council has annually adopted to select coverage for elected and
appointed commissioners that serve on the EDA,Planning Commission and Park Board.
BACKGROUND INFORMATION: The City is in receipt of the Workers Compensation Premium for
2013/2014. The rate is based on a modification rating using claims to reward or penalize. A modification
rating of 1 is used as a starting point and then it can increase or decrease based on claims. The City mod
rate dropped again from .82 to .75. Due to some claims in 2012 it is anticipated the rate increasing in
August 2014. If the City elects a$2,500 the premium is reduce by 6.5%with an estimated premium
before reduction of$40,11 L In 2012 we had two large claims,both utilizing the full deductible, so the
total deductible paid was approximately$ 6,200. The deductible is effective and staff is recommending
continuation of the $2,500 deductible,despite the one year peak.
BUDGET/FISCAL IMPACT: $2,847 reduction in Wark Comp Premium(6.5%)
ATTACHMENTS: Request for Council Action
Coverage Information
REQUESTED COUNCIL ACTION: Authorize staff to notify the insurance carrier of establishing the
Work Comp Deductible at$2,500 per occurrence and to provide coverage for elected and appointed
officials.
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L��gue of Minnesc�ta Cities Insurance Trust
Group Se1�f-Insured Warkers' Ca�pens�tion Plan
l4S LJnir�ersity A��enue West Si.Faul, MN 55t03-209�4 Phone (bSi}215-4173
�atice of Premiurn +C�ptions �'or �"tandard �'remiums of �25,�Ut}-$5(�,QOQ
ST J�SEPH. CITY OF Agreement No. : 0200QQ5033
25 1ST AVE. N.W. Agreement Peri�dc Fram: SJ0812413
PQ BO�S 668 To: 8i(}$J2�14
ST. JDS�PFE h1N 56374-0668
Enctcsed is a quotation fc�r wc�rkers'�arnpeasatic>n deposit premium.
ES`�'iMA`I`ED t?�;POSIT
PAY120LL DESCRIPTIC)�i CODE I�A"�"E PA'�'IZ()I:L PRF.MIUM
SI;E ATTACHEL3 SCH�:�)tJLE FtJR DET�iI.,S
. �����:.
��� � � ���;`.
������: . . .
Manual �remium 5839f,
Exp�rience Modificatian ', .75
Standar� Premium 43797.
� Dedueti�le Credit ' 0% .
Premium �iscount 3686.
Net Qeposit Frem�um 40111.
UPTIONS
Please indicate belc�v� �he premium opt�an you wish to setect�. You may �hoase only +�n� optior�
and y�u cennot chang� options during the egreement period.
NET dEPOSIT PREMIUM
1. „�,,,. Regular Pr€mium t3ptlon 4�111.
LM4�t4{3 j02}(Rev.01 j 10)
League of 1VIinnesota Cities Insurance 7"rust
t;�rc�up Se1f-lnsured't�c�rkers'Comp�nsatian Plan
��5 Universit.v Avenue West
St. Paal,M�t 55103-2�?�
�fi51�21S-41'J3
The "City„ Agre�ment Nc�. : 0200045033
Agree�ent Peric�d From: 810812013
5T JOSEPH. CTTY OF �� To: 8l0812014
�5 1S7' AVE. N.l�,
PO BOX 66$
ST. J(ISEPH MN 56374-0668
COIdTINUATION SCHE[lULE ��R �llCITATION PAGE
REMUNERATION RATE COaE DESCRIFTION EST. PREM
161765. 8.14 55U6 STREET CONSTRU�TION ' 13168,
96�85. �.15 752D 1�ATERYdORktS 3988.
93535. 4.48 758� SEWAGE DISPO5AL P�ANT 4190.
P4P 986$. 138.56 771$ FIREFI6HTER5(V0�}Nt7N SM�KING 13673.
525470. 3>22 7721 �tILICE-N{}N SM{3KINC �.6920.
1500. 2.20 77�2 POLICE RESERVES 33.
s�����. ,�� sa�o c����c�� o��rc� �r���av��s �ac z��s.
20�0. 5.39 9Q1b SKATSNG RINK Of�ERATIUN 10$.
98975. 3.75 9102 PARKS 3712.
l$2U0. .32 9411 E�.ECTEQ OR APPOINTE� OFFICIALS 58.
480�. 3.85 7b{}�D CAB�E TV �OMPANY 1$5.
54600» .32 9411 BOAROS COMMTSSIQNS 175.
Manual Premium 58396.
Agent: 203949310 '
90045: OMANN INSURANCE AGE�CY LLC
305 E CEDAR ST
�o sox so�
ST JOSEPN MN 56374-C}608
�/2c���o�3 �.��so{al�>
2. ,.,,.v„ Qeductibte Premium Option
D�ductible�p#it�ns ar�available in return for a premium c�•�dit appliec� t� your estimated�tandard
premium of$ 437�7. T�re d�d�actible ur�l] app1Y per accurrenc�tc�paic�m�dical cpsts only.
Tla�re is nc�a��r�gate limit.
Ded'uctibfe Premium Cr�dit Net I)eposi�
�er Occurrence Credit ,�rnount Prernium
�25� 1.50� 657. 39454.
�500 2.54% �095. 39016,
$I,Q00 3.5��« 1533. 3857$.
. - �2,5Ufl 6.5�% 2847. �7264.
�5,�Q0 9.50% 416I. 3595{�.
�10,000 I4.00% 6132. 33979.
�25,0(}D 21.5(3� 9416. 30695.
�5t?,OQO 27.50� 12044. 2$067.
3. �,,. Retrosp�ctive R��es Premium t�ption
RQtro-Rated Est.i��inim��m Retro-Rat�d , Fst.Maximum
Minimum Fac#ar Pmmium Maximwn F'actor Prennium
.737% 32278. 1,150% 50367.
.715°6 31315. l,250% 5474�i.
.6?2°� 29432. 1.5{�Q% 65696.
This quotation is�or a rieposit premium based on your estimate of payr�ll and se]ected aptic�ns. Yc�ur final.
actu�I premium will be computecl after an ac�dit af payrc>ll subsequent to the cl�se�f yarxr agreement year
and will be subject tc�revisic�ns in rates,payralls and�xperiet�c� m«difica�ion.�'�hile you are a xrmernber of
the LMCIT workers'Cc�mpensatit�n Flan,you will be eli�ible to participaCe in e�ividen�i disiributi�ns from
the Trust based uppn claims experienc�anci earnin�,s c�f the Trust.
If y�au desire the cavera�e t�tfered�bove,pl�as�r�turn this si�ned r��cument��r the c�ption yt�u have
selectec�.
This yuotation sh�uld be si�ned by an authc�rized representative af the city reyuestin�coverage.
Signature Title Date
L11T4513{3/02){itev.01/l3)
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