TAC Risk Management Pool Sends $10 Million Back to Members

The elected county officials on the board of the Texas Association of Counties Risk Management Pool (RMP) agreed in December to award $10 million in renewal credits for counties that participate in the TAC RMP Workers’ Compensation program for 2008.
Depending on loss history, long-term members with records reflecting fewer losses may be eligible for a renewal credit of up to 80 percent of the member’s computed price. This is the second year that the Fund has issued renewal credits.
“Because the Pool literally is owned by the counties that participate, the Fund’s great performance makes it possible for us to pass on greater savings and discounts for the members and our taxpayers,” said Cooke County Judge Bill Freeman, chair of the RMP Board. “We’re excited that the proactive loss control that counties have engaged in, as well as the efficiencies that come with pooling, have made this possible.”
Members are again eligible for a Pool discount of up to 30 percent, which is in addition to the preferred package discount. Since 1992, the Pool has rewarded members with good loss experience with these discounts, while emphasizing to members with less-than-desirable experience the need for strong safety and loss control programs. Increased contributions paid by members with high losses serve as an incentive to reduce future losses.
The TAC Risk Management Pool uses the state of Texas approved workers’ compensation work-class codes (with Texas Department of Insurance 2008 Rate Relativities) as the benchmark for setting its price, commonly referred to as the “manual rate.” TDI Rate Relativities reflect the direct claims cost for employees in their occupation (and do not factor any other workers’ compensation costs into the rates).
These class code rates are then adjusted to reflect the efficiency of the TAC Risk Management Pool and have resulted in an overall pool reduction off manual rates that are substantially better than any in the commercial market place. While indi