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BWC Group-Retrospective Rating Program
Overview
Group-retrospective rating is a voluntary performance based incentive program. BWC-certified sponsors create groups of employers who practice effective workplace safety and claims management to achieve lower premiums than they could as individuals.
Employers continue to pay their own individual premiums and have the opportunity to receive retrospective premium adjustments based upon the combined performance of the group. Depending on that performance, the participating employers can receive either a premium refund or assessment. This plan provides incentives to the group retro members to control and reduce losses.
Eligibility Requirements
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Be a private, state-fund employer or a public employer taxing district
Note: Self-insuring employers and state agency public employers are not eligible to participate |
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Be current on any and all premiums, administrative costs, assessments, fines or monies owed to BWC |
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Have active coverage by the application deadline |
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Not have cumulative lapses in workers’ compensation coverage in excess of 40 days within the 12 months preceding the application deadline |
Sponsoring organizations also may screen group-retro applicants with their own underwriting requirements. This is an important step in the process to ensure your fellow group members are committed to safety and claims cost containment.
Refunds/Assessments
Employers will pay experience- or base-rated premium under the same terms as if they were not in a retro group. The total premium for the entire group is the standard premium of the group. The standard premium serves as the benchmark that is adjusted up and down retroactively.
BWC will recalculate the group-retrospective premium 12 months after the end of the policy year, based on developed incurred claim losses, including reserves, for the whole group during the original policy year. BWC will compare the new premium to the standard premium. If the retrospective premium is lower than the standard premium, BWC will distribute a refund to the employers in the group. If the retrospective premium is higher, then BWC charges each employer in the group an assessment.
BWC will recalculate premium again at 24 and 36 months and issue refunds or charge assessments accordingly. BWC bases this on the percentage of total group standard premium paid by an employer. Example: If an employer’s standard premium accounts for 10 percent of the total group standard premium for that retro year, that employer would receive 10 percent of all refunds and assessments resulting from that retro year.
BWC will also apply a maximum premium ratio (MPR) to all retro groups and take that ratio into account when billing. This ratio will cap the amount of additional premium a retro group could pay for a policy year. The group sponsor chooses the maximum premium ratio for the retro group. Groups who choose a higher MPR would be eligible for higher refunds. This higher potential return is offset by the possibility of a greater assessment.
Payment of Refunds/Billing of Premium
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Premium refunds within four months of the valuation date |
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Premium assessments due 28 days after the employer receives the invoice |
Application and Enrollment
Interested employers must apply through a BWC-certified sponsor. Certified sponsors will provide you with an application and make the final decision whether to include you in their group-retrospective program. Here are the enrollment deadlines and coverage periods.
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Private, state-fund employers |
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Enrollment deadline – July 31 for the policy year starting July 1st 2009. For each year thereafter, the deadline is the last business day of April |
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Coverage period - July 1 to June 30 |
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Public employer taxing districts |
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Enrollment deadline - on or before the last Friday of September |
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Coverage period - Jan. 1 - Dec. 31 |
To continue participation in group-retrospective program employers must re-apply each year.
Compatibility with Other programs
Group-retrospective employers cannot participate in any programs listed below during that policy year:
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Individual Retrospective Rating |
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$15,000 Medical-Only Program |
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Drug-Free Workplace Program |
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One Claim Program |
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Group-Experience Rating |
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