2013-12-11 CC Packet - Laserfiche WebLink

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Investment income. An additional I% rate increase is needed to offset the lower investment income projected for 2014. In addition to the overall rate increase, rates for volunteer firefighters will increase an additional 3 %. These rates are based on population served, rather than payroll, and therefore lag all other class rates essentially by the amount of annual wage inflation. This slight increase will allow volunteer firefighter rates to stay in line with other job classes. The LMCIT Board also decided to decrease rates for LMCIT's optional volunteer accident coverage by 15% because of the very low loss experience and growth in member participation for this line of coverage. The volunteer accident coverage provides disability, death, and impairment benefits to city volunteers who are injured while performing volunteer services for the city. Cities can also add a limited medical benefit as an extra cost option. At the new rate, the basic charge is $.55 per capita, subject to a minimum premium of $85 and a maximum premium of $850. Dividends Members of the property/casualty program will share in a $10 million dividend this year, bringing the total amount of returned dividends since 1987 to $270 million. The $10 million property /casualty dividend will be distributed in mid - December 2013 to those who are property /casualty members as of December 1, 2013. LMCITDividends $270 Million Since 1987 $25,000,000 $20,000,000 - - - - -- -- — — $15,000,000 ___----------- ___ - -- ___ _�_� _— _�----- - - - - -_ _� $10,000,000 $5,000,000 $0 m m 9) m 9) m 9) 9) 9) rn rn rn o 0 0 0 0 0 0 0 0 0° P ❑ Work Comp ■ Property /casualty The dividend formula will be the same as that used during the past several years. Under that formula, a city's share is proportionate to the difference between the city's total earned premiums and total incurred losses for all years the city has been a member, with large individual losses capped for purposes of the formula. This approach recognizes cities that have been long -time members and that have been most successful in avoiding and controlling losses. Coverage Changes The following coverage changes will take effect for workers' compensation coverages renewing on or after January 1, 2014 and property/casualty coverages renewing on or after November 15, 2013. Workers' Compensation Coverage Post - traumatic stress disorder (PTSD) benefits In 2010 LMCIT added coverage for certain costs of treatment and wage loss for emergency response personnel affected by PTSD after a traumatic emergency call. The coverage that was added in 2010 was not a benefit required by statute, but rather a voluntary expansion of coverage developed by LMCIT in response to a request by a member. The 2013 amendments to the workers' compensation statutes make PTSD a 41 Page