HomeMy WebLinkAbout05. 18-26 JANUARY 23, 2018 18-26 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: REAUTHORIZATION 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.
BE IT FURTHER RESOLVED that money for this purpose is hereby appropriated
from:
Acct. No. 0603-6XXX Workers Compensation- Multiple Accounts
Fully Insured Workers Compensation Estimate 2018
ESTIMATED Annual Premium
$
1,345,846
PROJECTED experience modification
0.66
$
888,258.36
Premium Discount
$
96,167
$
792,091
Terrorism
$
7,639
Domestic Terrorism
$
3,820
Expense Constant
$
220
$
803,770
Current Self -Insured Workers Compensation Costs
TPA Fees
$
22,800
Excess Workers Compensation
$
91,300
Claims
$
2321F798
Miscellaneous Fees (State)
$
2,500
$
349,398
$232,798 (Average over 7 years) **
Net savings by going self-insured $ 454,372
(Minimum - $18,000)
**
F; V Q
r
Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Paul Greeninger, Safety & Risk Management Officer
DATE: January 15, 2018
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 self-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,
Paul Greeninger
Safety & Risk Management Officer
Approved:
Mark A. Rohloff
City Manager
CC: John Fitzpatrick, Assistant City Manager/Director of Administrative Services
City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us