HomeMy WebLinkAbout18. 15-72
FEBRUARY 24, 2015 15-72 RESOLUTION
(CARRIED___7-0_____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: REAUTHORIZE CONTINUANCE OF SELF-INSURANCE FOR
WORKER’S COMPENSATION
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the City of Oshkosh is a qualified political subdivision of the State of
Wisconsin; and
WHEREAS, the Wisconsin Worker’s Compensation Act (Act) provides that
employers covered by the Act either insure their liability with worker’s compensation
insurance carriers authorized to do business in Wisconsin, or to be exempted (self-
insured) from insuring liabilities with a carrier and thereby assuming the responsibility
for its own worker’s compensation risk and payment; and
WHEREAS, the State and its political subdivisions may self-insure worker’s
compensation without a special order from the Department of Workforce Development
(Department) if they agree to report faithfully all compensable injuries and agree to
comply with the Act and rules of the Department; and
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of
Oshkosh does ordain as follows:
(1) Provide for the continuation of a self-insured worker’s compensation
program that is currently in effect.
(2) Authorize the City Clerk to forward certified copies of this resolution to the
Worker’s Compensation Division, Wisconsin Department of Workforce
Development.
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OI-�C H
ON iHE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Paul Greeninger, Safety & Risk Management Coordinator
DATE: February 24, 2015
RE: Reauthorize Continuance of Self-Insurance for Worker's Compensation
BACKGROUND
Every three years, each self-insured political subdivision must provide the Department
of Workforce Development with a resolution, passed by the governing body that states
its intent and agreement to self-insure, in order to meet the requirements set forth in
Wisconsin Administrative Code DWD 80.60(3).
ANALYSIS
Please find attached an analysis done by Willis of Wisconsin which compares the cost
of a fully insured versus the estimated costs of a seff-insured plan. The analysis
indicates that a self-insured plan remains the financially prudent thing to do. The City
Manager recommends that the Council approve the Resolution as proposed.
Respectfully Submitted, Approved:
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Paul Greeninger Mark A. Rohloff
Safety & Risk Management Coordinator City Manager
CC: John Fitzpatrick, Assistant City Manager/Director of Administrative Services
Comparison of Fully Insured (Guaranteed)
vs
Self-Insured Workers Compensation Insurance
Guaranteed Cost Workers Compensation Estimate
ESTIMATED Annual Premium $1,172,307
PROJECTED experience modification 0.62
$726,830
Premium Discount 76 602
$650,228
Terrorism (Total Payroll = $33,303,426 $6,601
Domestic Terrorism $3,330
Expense Constant $22p
Projected cost of fully insured WC plan $660,379
Current WC Costs
TPA Fees $23,520 (Minimum -$18,000)
Excess WC $59,869
Claims $219,524
Miscellaneous Fees (State) $2,500
Projected cost of current self-insured plan $305,413
$219,524 (Average over 5 years) "*
City of Oshkosh
Workers Compensation
2-1-15 to 2-1-16 Estimated Annual Premium
Loc# Division Code# 10-01-14 Rates Premium
1 Committee on Aging 8810 53,026 0.27 143
9412 268,880 4.34 11.669
11,812
2 Parking Dept 9412 44,813 4.34 1,945
8810 37,875 0.27 102
2,047
3 Sewer Dept 8810 75,750 0.27 205
9412 1,418,287 4.34 61,554
61,759
4 Transit Dept 7382 1,262,914 5.93 74,891
8385 26,368 4.94 1,303
8810 192,853 0.27 521
76,715
5 Library Dept 8810 1,893,765 0.27 5,113
6 Museum Dept 8810 416,628 0.27 1,125
9412 44,813 4.34 1.945
3,070
7 Waterworks Dept 7520 1,533,268 3.93 60,257
8810 151,502 0.27 409
60,666
8 GeneralCity 7704 7,096,370 4.73 335,658
7720 6,963,230 4.14 288,278
8810 4,276,430 0.27 11,546
9412 6,101,747 4.34 264.816
900,298
9 Cemetery 8810 23,283 0.27 63
9412 224,066 4.34 9.724
9,787
10 Health Services 8810 75,750 0.27 205
9412 519,835 4.34 22,561
22,766
11 Golf Course 9060 385,031 2.3 8,856
12 Storm Water Utility 9412 216,942 4.34 9,415
2015/2016 Estimated 1,172.307
15-16 Budget Projections
2014-08-01