Celebrating 20 Years of Success!

Transcription

1 Annual Report Celebrating 20 Years of Success! 550 Ellinwood Way, Pleasant Hill, CA Phone: 1 (866) Fax: (925)

2 JPA ADMINISTRATION 2014/15 Member Letter The CCCSIG JPA was formed in July 1977 for the purpose of providing Contra Costa County school districts with self-insurance for workers compensation. As we begin the new school year, CCCSIG celebrates reaching a milestone of 20 years of selfadministration, while continuing to strive to maximize the human and financial resources of our members in order to contribute to and enhance public education. Through the formation of the JPA and self-administration, CCCSIG has improved services for employees, reduced costs for member districts and provided better claims outcomes while maintaining a strong financial position. All of these components of the Group s operations were recognized by California Association of Joint Powers Authority by their re-accreditation of CCCSIG with Excellence as a JPA! CCCSIG s culture, which supports our mission and service commitment to our members while providing stable rates, provides a viable solution for member districts workers compensation insurance needs, even more today than it did in CCCSIG s history will always be an integral part of its future and working with the Board of Directors will continue to focus on working through its strategic goals and objectives in the most effective and efficient manner possible. This upcoming year for the JPA, like past years, looks very promising, as highlighted throughout this report. Sheri Gamba, Board President, Assoc. Supt./Business Services/WCCUSD Bridget Moore, Executive Director/CCCSIG

3 JPA ADMINISTRATION Financial Update Over the past 8 years, our Member Districts have dealt with many difficult financial issues due to the recession and related budget reductions. CCCSIG is proud to have been able to return just under $13.4 million of equity growth/equity to our members during this difficult time. After ending the 2008/09 fiscal year with a Net Position of $24.7 million, the Board declared a $3.5 million rebate in fiscal year 2009/10. Due to an operational surplus of $3.4 million prior to this rebate, CCCSIG ended the year with a $24.6 million Net Position! With the Net Position remaining so strong, the Executive Committee elected to lower the 2010/11 actuarial rate of $2.43 to a base rate of $1.95, returning approximately $4.0 million of equity growth/equity to our members. During this fiscal year the investment market deteriorated substantially, which required us to reduce our discount rate for claims liabilities from 4% to 3.13% (discounting is the reduction of claims liabilities to reflect the fact that premiums held to pay future expenses earn interest). The effect of this discount rate reduction was to lower our Net Position by $3.6 million. With an $800k operational surplus, the change in Net Position for 2010/11 ended up being $6.8 million, leaving $17.8 million. With our Net Position still being strong, the Executive Committee chose to again lower the 2011/12 actuarial rate of $2.41 to a base rate of $1.95, returning an additional $3.8 million of equity growth/equity to our members. The investment market continued to struggle during this year, which resulted in another lowering of our discount rate for claims liabilities from 3.13% to 2.89%, which lowered our Net Position by another $1.1 million. With $1.7 million more of positive operational results, CCCSIG was able to offset some of the returned equity and the impact of the lowered discount factor, ending the year with a Net Position of $14.7 million, a reduction of $3.1 million. For 2012/13, the Executive Committee chose to once again help our members by returning equity. The $2.58 actuarial rate was lowered to a $2.32 base rate, which resulted in an additional $2.1 million of equity growth/equity being given back to our districts. During this fiscal year the investment market stabilized, which resulted in our only having to lower our discount rate by.1%, from 2.89% to 2.79%, for a reduction in Net Position of $98k. The operational surplus for this year was able to offset almost the entire amount of the equity return and discount rate adjustment, with our Net Position only decreasing by $21k to $14.6 million. For 2013/14, the Executive Committee decided to set the base rate to the actuarially determined rate of $2.52. The investment market remained stable during the year, which allowed us to keep our discount rate at 2.79%. With positive operational results of $3.3 million for the fiscal year, our Net Position ended up being $18.0 million! For 2014/15, the Executive Committee selected the actuarial base rate of $2.62. The investment market remained stable during the year, allowing us to maintain the 2.79% discount rate. We once again had positive operational results for the fiscal year of $2.2 million, which were offset by a prior period adjustment to record pension liabilities per GASB 68, together these resulted in a net increase in Net Assets of $200k for an ending Net Position of $18.2 million.

4 CCCSIG Financial Overview Fiscal Year 2014/15 CCCSIG is a JPA (Joint Powers Authority) which allows government agencies to pool their purchasing power to achieve lower costs in areas such as Workers Compensation insurance. Our rates are determined by an Actuary, who takes a look at the historical loss rates of the Group, along with the Districts estimated annual payroll, to determine how much premiums need to be collected to cover the anticipated claims for that year. The Actuary will discount the total expected claims costs to recognize that the claims may not be fully paid out for up to 30 years or even longer, which means that a good portion of the premiums will be available to earn interest over that time. By discounting, the Actuary may calculate that it is necessary to collect $20M in premiums, even though the total expected claims costs may be $24M, recognizing that the funds will earn $4M in interest before all the claims must be paid. Each District s premium is calculated based on the formula on page 2. The Actuary determines the Ex Mods (Experience Modification factors) for the District by looking at their claims experience history for the previous 5 years and comparing it to the Group s average over that same period. The base rate for the Agency is determined by applying the individual Ex Mods to generate the necessary premiums. Once the estimated premiums are determined for each district, they are collected based on the following schedule: 1 st Installment = 50% of estimated premium due July 1 st 2 nd Installment = 30% of estimated premium due December 1 st 3 rd Installment = 20% of estimated premium due March 1 st At the end of each fiscal year, the Districts report their actual payroll to CCCSIG, who then either generates an invoice for additional premiums if the payroll ended up being higher than estimated, or gives a refund if the payroll was lower than estimated. In 2005 CCCSIG ended the year with a Net Asset Deficit of $10M. This deficit was caused by several events over the prior 10 years. The first was that the CA Workers Compensation market, as well as the nationwide market, experienced a huge unexpected increase in claims costs beginning in the late 90 s. These additional costs created a large financial strain on all WC insurance companies, as past policy years experienced claims costs that were far greater than the amount of premiums that had been collected for those years. These unexpected costs were not immediately noticeable as claims develop over several years. At the same time that this downturn began, there was a trend with JPA s of giving rebates to their members, as they found themselves with what appeared to be excess funds because the prior years costs had not developed as high as originally expected. CCCSIG declared rebates in 1997, 1998 and 2000 totaling $20M. What is important to remember is that the agencies rely not only on having the premiums they collected available to pay claims costs, but on the interest those premiums earn in the interim. So not only did the rebates reduce CCCSIG s equity by $20M, but there was over $5.0M of additional Interest (assuming an interest rate of 3.5%) that would have been earned over that time (through 2005) which would have increased its equity position. It is obviously not possible to go back, but it is important to understand that had the rebates not been given, CCCSIG not only would have weathered the severe downturn in the WC market without having a deficit, but would have still had close to $15M in Net Assets at the end of This helps in illustrating that it was not an operational shortcoming of CCCSIG or its funding model that created this deficit, which would typically be the case for most insurance organizations.

5 In response to the Net Asset Deficit position that CCCSIG found itself in, CCCSIG s Board of Directors voted to declare a Net Asset Deficit Assessment in March of This began by re characterizing $2.2M that had been collected in 05/06 for a Rate Stabilization Fund as the 1 st installment of the Assessment. The remaining $7.9M was to be collected over the next 10 years. After collecting an additional $1.6M over the following two years, CCCSIG ended the 07/08 fiscal year with excellent news. Due to very positive results in the March 26, 2008 actuarial study, along with a focus on settling claims for less than the liabilities reserved for those claims, the Board of Directors voted to suspend the Deficit Assessment! Even after removing the remaining $6.3M Assessment Receivable from the books, CCCSIG ended the 2008 fiscal year with $16.3M in Total Net Assets. CCCSIG had some more positive news in the 2009 fiscal year, adding an additional $8.4M in surplus, bringing the Groups Net Assets to $24.7M. This remarkable turnaround over a 4 year period provided the Group with a strong level of Net Assets, large enough that the Board of Directors decided to declare a $3.5M rebate in the 2010 fiscal year! Even after providing this rebate to the members, CCCSIG ended the year with $24.6M in Net Assets, due to a surplus for 2009/10 of $3.4M prior to the rebate. With the Net Assets remaining at such a strong level after 09/10, the Executive Committee decided to lower the 10/11 base rate from $2.43 to $1.95, with the intent of returning an additional $4.0M of equity growth/equity to the members. There was an additional lowering of the Net Assets as of 6/30/11 due to the deterioration of the investment market, which necessitated lowering the discounting of claims liabilities by $3.4M (from 4% to 3.13%), which was partially offset by some positive ultimate claims cost development, leaving $17.8M in Net Assets. The Executive Committee decided to lower the base rate again in 11/12, from $2.41 to $1.95, with the intent of returning an additional $3.8M of equity growth/equity to our members during these difficult financial times. The continued poor performance in the investment market resulted in another lowering of the claims liabilities discounting of $1.1M (from 3.13% to 2.89%), but we had some more positive claims results during the year which helped offset these, allowing us to end the year with $14.7M in Net Assets. For 12/13 the Executive Committee decided to start moving the rate back towards the actuarially determined rate, but still wanted to help the members by returning some more equity growth/equity. They reduced the base rate from $2.58 to $2.32, returning another $2.1M. The deterioration of the investment market had slowed during this fiscal year, so we only had to lower the discounting of claims liabilities by $98k (from 2.89% to 2.79%). CCCSIG continued to have strong operational results in 12/13, which was evidenced by the equity only being reduced by $21k for the year, when it could have been lowered by as much as $2.2M($2.1M equity return + $98k discount rate reduction). For 13/14, the Executive Committee chose to set the base rate at the $2.52 rate that was determined by the Actuarial Report. CCCSIG had another strong year, ending with a $3.3M surplus from operations. The investment market stabilized this year, which allowed CCCSIG to keep the discount rate at 2.79%, so we ended the fiscal year with an $18.0M Net Position (Net Assets). For 14/15, the Executive Committee again set the base rate to the rate determined by the Actuarial Report, which was $2.62. The investment market remained stable, so we maintained the 2.79% discount rate. CCCSIG had another operational surplus, $2.2M for this fiscal year, which was offset by the requirement of GASB 68 to record the outstanding pension liability through a prior period adjustment. Overall this resulted in a $200k increase to our Net Position, ending the year with $18.2M in Net Assets. It is important to note that since 09/10, CCCSIG has been able to return $13.4M to our members during these difficult financial times, as well as absorb the effects of the deterioration of the investment market, which negatively impacted our equity by $4.8M, and further reducing equity by another $2.0M due to the new requirement to book the pension liability, with our equity ultimately only being reduced by less than $6.5M during that time!

6 Premium Formula FY16 Estimated Payroll / 100 X Base Rate X Ex-Mod Factor = FY16 Estimated Premium

7 APPROVED WC PREMIUM $750k Overall Rate of $ PAYMENT SCHEDULE Jul-15 1-Dec-15 1-Mar-16 PAYROLL ESTIMATE EX-MOD FACTOR BASE RATE ESTIMATED PREMIUM PREMIUM Premium Advance DISTRICT $ % 30% 20% Acalanes 36,996, % , , , , ,447 Antioch 92,502, % ,740,247 3,740,247 1,870,124 1,122, ,049 Brentwood 42,285, % , , , , ,990 Byron 7,431, % , ,392 97,196 58,318 38,878 Canyon 403, % ,552 7,552 3,776 2,266 1,510 CCC Office of Ed. 33,636, % , , , , ,232 John Swett 7,851, % , ,027 82,514 49,508 33,005 Knightsen 2,400, % ,274 43,274 21,637 12,982 8,655 Lafayette 21,700, % , , , ,567 87,045 Liberty 37,516, % ,238,951 1,238, , , ,790 Martinez 21,346, % , , , ,044 76,029 Moraga 10,253, % , , ,618 69,371 46,246 Oakley 24,940, % , , , , ,727 Orinda 15,605, % , , ,289 90,773 60,516 Pittsburg 52,964, % ,815,824 1,815, , , ,165 Walnut Creek 18,009, % , , , ,160 72,774 COE Total $425,845,174 $12,265,299 $12,265,299 $6,132,652 $3,679,589 $2,453,058 CCC College 110,000, % ,551,407 1,551, , , ,281 San Ramon 180,676, % ,226,547 3,226,547 1,613, , ,309 West Contra Costa 159,462, % ,600,440 4,600,440 2,300,220 1,380, ,088 TOTAL $875,985,003 $21,643,693 $21,643,693 $10,821,850 $6,493,107 $4,328,736

8 PR PR % PR % PR % DISTRICT Actual Actual CHANGE Actual CHANGE ESTIMATE * CHANGE Acalanes Antioch Brentwood Byron Canyon CCC College CCC Office of Ed. John Swett Knightsen Lafayette Liberty Martinez Moraga Oakley Orinda Pittsburg San Ramon Walnut Creek West Contra Costa TOTALS 35,615,042 34,312, % 34,424, % 36,996, % 89,083,963 86,354, % 88,952, % 92,502, % 40,570,750 39,475, % 41,140, % 42,285, % 7,319,262 7,145, % 8,979, % 7,431, % 415, , % 402, % 403, % 108,544, ,908, % 109,046, % 110,000, % 32,555,218 30,344, % 30,909, % 33,636, % 7,647,307 7,329, % 8,096, % 7,851, % 2,405,846 2,273, % 2,439, % 2,400, % 19,988,262 17,694, % 18,928, % 21,700, % 34,928,682 33,208, % 36,637, % 37,516, % 20,522,776 19,927, % 22,042, % 21,346, % 10,807,353 9,572, % 10,665, % 10,253, % 22,575,102 22,060, % 24,974, % 24,940, % 15,871,825 14,567, % 15,390, % 15,605, % 55,184,097 49,444, % 56,192, % 52,964, % 157,709, ,727, % 160,444, % 180,676, % 19,100,624 17,484, % 17,033, % 18,009, % 157,254, ,943, % 157,410, % 159,462, % $ 838,099,979 $ 847,151, % $ 844,111, % $ 875,985, %

9 DISTRICT EX-MOD EX-MOD % CHANGE Acalanes 82.1% 76.3% -7.1% Antioch 156.7% 163.7% 4.5% Brentwood 85.1% 87.6% 2.9% Byron 91.7% 105.9% 15.5% Canyon 75.7% 75.7% 0.0% CCC College 67.4% 57.1% -15.3% CCC Office of Ed % 119.9% 7.2% John Swett 92.1% 85.1% -7.6% Knightsen 64.6% 73.0% 13.0% Lafayette 69.1% 81.2% 17.5% Liberty 116.8% 133.7% 14.5% Martinez 74.9% 72.1% -3.7% Moraga 79.5% 91.3% 14.8% Oakley 111.5% 119.9% 7.5% Oi Orinda 73.1% 78.5% 7.4% Pittsburg 147.7% 138.8% -6.0% San Ramon 77.8% 72.3% -7.1% Walnut Creek 72.7% 81.8% 12.5% West Contra Costa 113.0% 116.8% 34% 3.4%

10 Selected CCCSIG Historical Financial Data Analysis of Audited Statements of Net Assets $120 $100 $80 $60 illions Mi $40 $20 $ $(20) Total Assets Total Liabilities Net Assets

11 Selected CCCSIG Historical Financial Data Analysis of Audited Statements of Activity(WC Only) $40 $30 $20 Millio ons $10 $ $(10) $(20) Revenues Expenses Rebates Annual Surplus/(Deficit)

12 Fiscal Year Budget WC HB TOTAL Contributions $21,643,693 $23,600,000 $45,243,693 Miscellaneous 359,500 7, ,000 Total Income $22,003,193 $23,607,500 $45,610,693 Claims and Operating $17,698,268 $23,600, $41,298, Salaries and Benefits 3,348, ,348,650 Other Administrative 791, ,275 H&S Incentive Rebate 165, ,000 Total Expense $22,003,193 $23,500,000 $45,503,193 Net Asset Increase (Decrease) 0 7,500 7,500 0

13 Fiscal Year Budget WC PROGRAM INCOME WC PROGRAM EXPENSES WC Premiums 98.4% Claims Costs 73.5% Miscellaneous Income 1.6% General Dept BR Dept Admin Dept 1.5% 1.3% 8.5% H&S Dept 3.1% Claims Dept 12.1%

14 CCCSIG Rates & Equity History One of the main benefits of a JPA versus a commercial insurer is that if the cost of a policy year turns out to be less than the amount of premiums that were paid in, the additional funds remain with the JPA and can be used to benefit the members. This can be done through rebates, lowering rates for future policy years, or building up equity to be used by the members in the future. A commercial insurer will use these additional funds to increase their profit. CCCSIG has been able to do all 3 of these things over the years, with the rebates and rate reductions having a direct effect of lowering the amount of premiums the members ultimately pay in. For example, CCCSIG has provided rebates to our members totaling $23.5M since 1997 and has returned an additional $9.9M in equity from lowering the base rate. If you look at all of the premiums our members have paid in since the inception of CCCSIG in 1977, the return of these funds result in an average decrease of 7.3% in their workers compensation insurance costs. Even after returning the $33.4M to our members, CCCSIG ended fiscal year 2015 with equity of $18.2M. While it is important for the Group to maintain equity to be able to weather any negative market developments or cost increases, this equity ultimately belongs to our members and can be used to help them in the future as they see fit. The chart below shows an eight year history of the rates determined by the Actuarial Study at the 80% confidence level, the rate that was adopted by CCCSIG, the estimated amount of equity growth/equity that was used to reduce the premiums paid in by the members, the rebate that was distributed to the members, and the change in the equity balance over that time period. If you look at the beginning and ending equity balance, you ll see that equity has only gone down by just under $6.5M during this time, while almost $13.4M was returned to our members. Also within this period, the deterioration of the investment market has resulted in CCCSIG having to reduce the discount rate for our claims liabilities(discounting recognizes that the premiums that were collected but haven t been paid towards expenses yet are earning interest), which resulted in raising the net claims liabilities(reducing equity) by almost $4.8M. This past year, GASB 68 required us to book our pension liability as a prior period adjustment of just under $2.0M. So between returning equity to our members, lowering of the discount rate, and recording the pension liability, equity could have been lowered by as much as $20.2M, instead of the less than $6.5M that it was actually lowered, which reflects some very strong operational results. CCCSIG 8 Year Rate History 80% CL Policy Actuarial Adopted Est. Equity Growth/ Ending Equity Year Rate Rate Equity Used Rebate Balance $ 2.52 $ 2.52 $ $ $ 24,659, $ 2.39 $ 2.39 $ $ 3,500,000 $ 24,577, $ 2.43 $ 1.95 $ 3,992,096 $ $ 17,786, $ 2.41 $ 1.95 $ 3,761,279 $ $ 14,681, $ 2.58 $ 2.32 $ 2,116,797 $ $ 14,660, $ 2.52 $ 2.52 $ $ $ 17,959, $ 2.62 $ 2.62 $ $ $ 18,160, $ 2.32 $ 2.47 $ $ Total $ 9,870,172 $ 3,500,000

15 CONTRA COSTA COUNTY SCHOOLS INSURANCE GROUP STATEMENT OF NET POSITION JUNE 30, 2015 AND ASSETS Current Assets Cash and cash equivalents $ 18,696,363 $ 10,669,187 Investments maturing within one year 5,660,565 1,903,814 Interest receivable 188, ,226 Accounts receivable 508,710 1,192,171 Prepaid expenses 188,684 1,139,472 Total Current Assets 25,243,152 15,120,870 Noncurrent Assets Investments, less portion maturing within one year 74,537,845 79,186,324 Capital assets, net 4,007,909 4,186,260 T otal Noncurrent Assets 78,545,754 83,372,584 T otal Assets 103,788,906 98,493,454 DEFERRED OUTFLOWS OF RESOURCE Deferred outflow on pensions 303,213 - LIABILITIES Current Liabilities Accounts payable 2,721,615 2,078,523 Accrued expenses 106, ,884 Unearned revenue Current portion of assessment payable 347, ,763 a djustment expenses 12,500,000 12,000,000 T otal Current Liabilities 15,674,796 14,529,564 Noncurrent Liabilities Unpaid claims and claim adjustment expenses 65,564,805 63,204,810 Pension liability 1,804,525 - Assessment payable 2,430,943 2,799,469 T otal Noncurrent Liabilities 69,800,273 66,004,279 T otal Liabilities 85,475,069 80,533,843 DEFERRED INFLOWS OF RESOURCE Deferred inflow on pensions 456,788 - NET POSITION Net investment in capital assets 4,007,909 4,186,260 Unrestricted 14,152,353 13,773,351 T otal Net Position $ 18,160,262 $ 17,959,611 The accompanying notes are an integral part of these financial statements.

16 CONTRA COSTA COUNTY SCHOOLS INSURANCE GROUP STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE FISCAL YEARS ENDED JUNE 30, 2015 AND OPERATING REVENUES Member contributions $ 45,854,971 $ 44,635,772 Other revenues 272, ,392 Total Operating Revenues 46,127,039 44,857,164 OPERATING EXPENSES Provision for claims and claims adjustment expenses 15,531,893 13,334,606 Insurance premiums 24,655,803 24,546,052 Program salaries and benefits 2,023,917 2,066,104 Professional and consulting fees 189, ,265 Other salaries and benefits 1,160,319 1,172,017 Depreciation expense 198, ,298 Other general and administrative expenses 942, ,650 Total Operating Expenses 44,702,402 42,373,992 Operating Income (Loss) 1,424,637 2,483,172 NONOPERATING REVENUES Investment income 762, ,732 Change in Net Position 2,186,958 3,298,904 Net Position Beginning of Period - As Originally Reported $ 17,959,611 14,660,707 Prior period adjustment (1,986,307) Beginning of Period - Revised 15,973,304 End of Period $ 18,160,262 $ 17,959,611 The accompanying notes are an integral part of these financial statements.

17 WORKERS COMPENSATION 2014/15 Workers Compensation Overview Medical treatment in workers compensation follows Evidence Based Medicine treatment protocols. These protocols are supported and upheld by a number of medical resources such as the Medical Treatment Utilization Schedule (MTUS), the American College of Occupational & Environmental Medicine (ACOEM), the Official Disability Guidelines (ODG) and other reputable medical journals. The MTUS is designated as the primary source for medical treatment, but there are instances when the MTUS does not apply. One such instance is when (if) the MTUS does not address a current or specific medical condition. In those instances, medical providers will then review other evidence-based medicine treatment protocols, such as ACOEM or ODG, to determine if these sources provide applicable treatment protocols. When these additional resources also provide that no other recommended treatment and no evidence-based guidelines exist, physicians may then revert to nationally recognized medical journals and studies. No longer does the physician s presumption of correctness, clinical experience, intuition or gut feelings apply in medical treatment decision-making. In fact, theses non evidence-based methods are insufficient for making decisions regarding medical treatment protocols. With these new guidelines in place, reserving claim files and anticipating the life of a claim can be more easily achieved. WC Claims /11 Indemnity 11/12 12/13 Medical Only 13/14 14/15 Claims Closed 10/11 11/12 12/13 13/14 14/15 Medical Only Opened Indemnity Opened Total Opened Medical Only Closed Indemnity Closed Total Closed

18 WORKERS COMPENSATION Company Nurse Update CCCSIG strives to contain and minimize its member district workers compensation costs through various cost containment methods, but timely incident reporting remains to be the number one cost containment method of them all. When a work related injury incident is immediately reported, the injured worker will benefit from timely medical treatment and other benefits and/or required notices. Additionally, any necessary investigation of the claim by CCCSIG will occur when incident/injury details are most memorable immediately following the incident. And last, it provides the opportunity to immediately place the injured worker into a modified or alternative position, depending on the work restrictions. The implementation of Company Nurse in 2007 has simplified the initial claims reporting process for administrators and staff. Claims are more quickly and easily reported using the telephonic medical triage process. The program is designed to do the following: Triage the injury and determine the best method of treatment. Direct medical care to appropriate treatment facility when necessary. Simultaneously send First Report of Injury notices to employer, CCCSIG and the physician s office. The telephonic claim reporting system has been an overwhelming success, boasting a fiscal year county-wide claim reporting average of 3.4 days, (when outliers of > 100 days are removed) which is significantly better than the 7+ day average prior to using Company Nurse. Our overall goal remains to get this number down even further with continued efforts from member districts to promote timely reporting of claims via the Company Nurse telephonic claims reporting system. Some of our fiscal year successes with the use of Company Nurse include recognizing decreases in both non emergency and emergency care treatment. In addition, there were increases to the overall percentage totals of self care for minor injuries that require no medical treatment. Cost Containment Savings Early Return to Work Savings $1,130,147 (53%) Future Medical Buy Out $587,246 (28%) Utilization Review $333,904 (16%) Pharmacy Benefit Management $65,979 (3%) TOTAL: $2,117,276 All CCCSIG Examiners have passed the California Self Insurance Administrator s examination which tests technical knowledge of Workers Compensation Law and its Application. Member Districts Decrease TTD Costs! The following member districts saw decreases in their annual Temporary Total Disability costs resulting from a combination of fewer severe injury claims that required time off and utilization of the Early Return to Work Program: Antioch USD CCC College District John Swett USD Knightsen SD Martinez USD Moraga SD Pittsburg USD

19 HEALTH & SAFETY SERVICES Mission of the Health & Safety Services Department To provide districts with a variety of services driven by identified trends and district feedback that will assist them in reducing the frequency of employee injuries and enhancing the overall health of their workforce. 2014/15 Incident Trends by Occupation & Incident Type Overview of Core Health & Safety Services Overall Utilization: ~ 1,600 services; ~ 9,800 participants from 18 districts. Post Offer, Pre-Placement Evaluation Program (PEP) Utilization: ~ 8,400 applicants ~ 16 districts ~ 8% Fail ~ 2% Medical Clearance Purpose: To determine if new hires in the following occupations possess the minimum level of strength necessary to perform the essential physical tasks of the job: Custodians, Food Service Workers, Special Education Instructional Assistants, Building and Grounds Maintenance Workers, Delivery Drivers, Warehouse Workers, Equipment Mechanics and Special Education Bus Drivers. Health & Safety Trainings (In-Person Trainings) ANNUAL HEALTH & SAFETY SUMMER TRAINING Utilization ~ 29 programs ~ 868 employees ~ 18 districts Target Audience: Custodians/M&O/Grounds Purpose: To provide interactive, job-specific safety, wellness and CalOSHA trainings that teach new skills, reinforce existing knowledge and motivate employees to make sound safety/health decisions on the job and at home. CPI NONVIOLENT CRISIS INTERVENTION TRAINING Utilization ~ 46 trainings ~ 459 employees ~ 15 districts Target Audience: Instructional Assistants, Administrators, Campus Supervisors Purpose: To provide opportunities for discussing and practicing key concepts while learning proven, practical skills to de-escalate disruptive or assaultive students.

20 HEALTH & SAFETY SERVICES Health & Safety Trainings (Online Trainings) ONLINE TRAINING (PUBLIC SCHOOL WORKS) Utilization ~ 4 courses ~ 4,312 employees ~ 4 districts Purpose: To provide additional training options that complement our in-person trainings and assist districts in reaching a greater number of employees with important health, safety and HR-related information. Note: At the end of FY2014/15, CCCSIG discontinued using Public School Works online training program and implemented Target Solutions, which has greater functionality and more available courses. ON-DEMAND ONLINE VIDEO TRAININGS (CREATED BY CCCSIG) Utilization ~ 5 videos ~ 641 views ~ 16 districts Purpose: To provide additional training options that complement our in-person trainings and assist districts in reaching a greater number of employees with important health, safety and HR-related information. Videos: Accident Investigation, Slip/Trip/Fall Prevention, Heat Illness Prevention, Back Safety & Lifting and Sit Safe Ergonomics. Ergonomic Evaluations Utilization: ~ 257 ergonomic evaluations ~ 16 districts Purpose: To identify risk factors that may lead to musculoskeletal disorders (MSDs), determine any feasible engineering or administrative control measures to reduce or prevent employee exposure to MSDs and identify appropriate types of personal protective equipment where effective engineering controls are not feasible. Healthy Lifestyle Programs Utilization: ~ 2 programs ~ 936 participants (613 online/323 poster) ~ 140 sites ~ 18 districts Purpose: To motivate employees to increase and/or maintain their current level of fitness, eat healthier and/or improve other health and safety behaviors. In FY2014/15, we provided the Pacific Crest Trail Fitness Challenge in the fall and the El Capitan Fitness Challenge in the spring. Annual Student Poster Contest Results Utilization: ~ 64 poster entries ~ 2 districts (AUHSD & WCCUSD) Purpose: To raise awareness of the high frequency and severity of slip, trip, fall incidents countywide and tips for preventing them. 1st place winners received $100, a framed poster and certificate; 2nd place winners received $50. Districts were given the opportunity to order copies of the winning posters to hang at each school/site. 1st Place Winners (both WCCUSD) Francisco Peralta, 10th grade, Kennedy High Jasmine Montgomery, 7th grade, Crespi Middle 2nd Place Winners Julie Aljamal, 10th grade, Acalanes High/AUHSD Cassia Souza, 7th grade, Crespi Middle/WCCUSD NEW IN 2015/16 Health & Safety Services Overview for Administrators and updated Slip, Trip, Fall Prevention Video Trainings Let s Walk to Tahoe Fitness Challenge and Spring Program (TBA) - New Online Provider Heia Heia 4-hr CPI Nonviolent Crisis Intervention Refreshers The Habits of Happy People (In-Person Training) Warm-Up, Stretch & Energize Class (In-Person Training) New Hire Cal/OSHA Mandated Safety Training for Custodial, M&O and Grounds Employees at CCCSIG New Online Training Provider - Target Solutions District Health & Safety Incentive Program Utilization: ~ 18 districts (Brentwood, COE & WCCUSD completed 100%) Purpose: To assist districts in building/maintaining a health and safety culture, mitigating high risk trends and maintaining CalOSHA compliancy. Participating districts may receive up to 1% of their premium back to apply toward their employee health and safety programs.

21 CCCSIG New Health & Safety Programs HEALTHY LIFESTYLE PROGRAMS The purpose of CCCSIG s Healthy Lifestyle Programs are to motivate employees to increase and/or maintain their current level of fitness, eat healthier and/or improve other health and safety behaviors. New in 2015/16: Fall Program: Let s Walk to Tahoe Fitness Challenge, an 8 week, online and/or poster based fitness challenge designed to assist member district employees in maintaining/increasing their physical activity at work and/or home, encourages participants to obtain and track at least 1440 minutes of any physical activity by the end of the program as they hike their way to Lake Tahoe! Online format, using new vendor Heia Heia, includes a district competition for a Fitness Shoe Trophy, free app, Fit Bit compatibility, countywide (group) and individual progress meter, team option and ability to cheer on /communicate with other online participants. Weekly motivational s sent to both online and poster participants. Participants who complete the challenge are entered into a drawing for a $100 gift card to REI or Fit Bit Flex. Spring Program: To Be Announced CCCSIG HEALTH & SAFETY TRAININGS (Online) CCCSIG s On Demand Videos These health and safety videos, created by CCCSIG Health and Safety Services staff, are short, easily accessible and customized to Contra Costa County member school districts. They can be accessed from the CCCSIG website or by ing the web link directly to employees; and have the ability to track and report user info (name, district and site). Videos currently available are: Heat Illness Prevention, Accident Investigation (for Administrators), Slip Trip and Fall Prevention, Lifting & Back Safety and Sit Safe Ergonomics: Get Your Ergo On. New in 2015/16: Health & Safety Services Overview for Administrators video added and existing Slip Trip and Fall Prevention video updated. Online Training Program (Target Solutions) This program, which supplements our in person and on demand video trainings, assists member districts in providing important health and safety training to a greater number of district employees all within a learning management system that provides automatic alerts to complete the assigned course(s) by established deadlines, the ability to track which employees have and have not completed assigned trainings and much more. All available courses are listed on our website under Online Trainings. New in 2015/16: Target Solutions (TS) online training program has replaced Public School Works (PSW). All training records from PSW have been uploaded to each participating district s TS File Center and are available upon request for nonparticipating districts.

22 CCCSIG New Health & Safety Programs CCCSIG HEALTH & SAFETY TRAININGS (In Person) All of our in person trainings can be customized to district and occupation specific needs. We can also create new health and safety trainings by request with ample advance notice. New in 2015/16: The Habits of Happy People Participants review how healthy lifestyle choices, such as exercise, healthy eating, getting appropriate sleep, choosing optimism, creating an attitude of gratitude, practicing mindfulness, and using humor can assist in creating more happiness in life and reducing one s risk to depression and anxiety disorders. 1 2hrs; any occupation; min. 10; max. 30. Warm Up, Stretch & Energize Class Participants learn and practice an easy, 15 min stretching/warm up routine they can perform before, during and/or after a physical workday which can assist in preventing injuries while having fun with co workers. 30 min; any occupation, although designed primarily for classified staff that perform physical tasks throughout their workday. Min. 10; max 20. New Hire Cal/OSHA Mandated Safety Training for Custodial, M&O and Grounds at CCCSIG Monthly, countywide Cal OSHA Mandated Safety Trainings for new hire custodial, M&O and grounds staff now offered at our office in Pleasant Hill on the second Tuesday of each month from 8:30 AM 12:30 PM for groups of at least 10 or more who sign up at least one week in advance. Training topics will include: Bloodborne Pathogens, Hazard Communication, Heat Illness, Personal Protective Equipment, Ladder Safety and more. CPI Nonviolent Crisis Intervention Refreshers 4 hour refresher training is now available for those employees who possess a current CPI certification. Dates for the full and refresher trainings offered at CCCSIG are available on our website. This training is also provided onsite for groups of 10 up to 20.

23 CCCSIG 2014/15 Health Benefit Program Highlights PLAN YEAR 2016 RATES AND CHANGES IN THE HEALTHCARE INDUSTRY Plan Year 2016 renewal rates with Anthem Blue Cross show an increase of 18.1% for the HMO plans and 5.6% increase for Kaiser Permanente. Both carriers are required to include a percentage of the increase for the Affordable Care Act Reinsurance and Insurance Fee, which is 3.70% for Anthem Blue Cross and 1.3% for Kaiser. The Anthem Blue Cross subscriber enrollment is down to 48, which automatically applies a manual rate for the renewal in comparison to Kaiser Permanente. In looking at alternative options for Anthem Blue Cross, the choices are almost nonexistent. The few alternative carriers in the area have declined to quote due to the high Kaiser Permanente enrollment. Added to the high Kaiser Permanente enrollment is the fact that some districts offer of cash in lieu and waivers. The topic of cash in lieu and waivers will be an ongoing one for the Health Benefits Committee in the new program year. There is one new carrier coming into the Contra Costa County area, Sutter Health Plus. Sutter is working with the Insurance Commissioner to begin providing quotes for 2016, in October. We will pursue obtaining quotes to review for a possible mid year change should it be favorable for districts and subscribers. Effective January 1, 2016, two member districts are withdrawing from the Health Benefits Program (Lafayette SD and St. Helena USD). WELLNESS AND PREVENTION Wellness and Prevention efforts continue CCCSIG Monthly Harmony for Health is an e communication containing wellness and education information from both Anthem Blue Cross and Kaiser Permanente. Returning again this year, the annual fall flu vaccination clinics offered during open enrollment for program participants and funded through the Anthem Blue Cross and Kaiser Permanent wellness funds. Additionally, CCCSIG Fall Wellness activities offered this year includes the CCCSIG Lets Walk to Tahoe (for members in the Workers Compensation Program). Each year the fall healthy lifestyle program kicks off during the open enrollment period, which many of our districts county wide participate in. LEGISLATIVE EDUCATION UPDATES Over the course of the year the Health Benefits Committee members receive electronic updates of healthcare legislation and reform. Webinars sponsored by Keenan and Associates (Health benefits Program Broker) are also available as are in person updates at the Health Benefits Committee meetings and member district health benefit committees as well. Each March, Keenan and Associates sponsors a Healthcare Symposium to which the Health Benefits Committee members are invited.

24 HISTORY OF CCCSIG CCCSIG History The Contra Costa County Schools Insurance Group (Agency) is a Joint Powers Authority organized in 1977 for the purposes of self -insuring workers compensation and provision of health & safety services to its 20 member public school districts in Contra Costa County. Today, it is a self-insured, self-administered public agency, which is one of the largest of its kind in the State of California. Of the 22 member districts, 20 are K-12 school districts, one County Office of Education and one Community College District. The Agency s workers compensation program encompasses greater than 22,000 employees and more than $844 million in payroll, which translates to approximately $22 million in workers compensation premium. Of the 22 member districts in the JPA, effective January 1, 2016, 7 are also members of the insured Health Benefits Program. The Agency has been recognized for success in leadership by its peers. First accredited by the California Association of Joint Powers Authorities (CAJPA) in 1993, the Agency currently is Accredited with Excellence. Due to the success of the program since it became self-administered in 1995, the member Superintendents and Governing School Boards supported and implemented changes to the JPA Agreement in 2003 to incorporate the potential for provision of other areas of insurance coverages, the first of which was the health benefits program. CCCSIG will continue to look into other avenues and potential areas of coverage to best serve the member s interests. CCCSIG is committed to customer service and cost containment for its member districts. Some of the programs implemented by CCCSIG that have assisted in decreasing the cost and number of workers compensation claims are a strong early return-to-work program; in-house bill review; an in-house nurse; Company Nurse new claims reporting; post offer, pre-employment strength testing; wellness, health and safety services, which include ergonomic evaluations, trainings and presentations in all areas of health, wellness and safety; as well as many other resources. CCCSIG was recognized in 2005 by the State of California with a Fit Business Award, which was presented in an awards ceremony to CCCSIG by Senator Tom Torlakson, who was also the Chairperson for the California Task Force on Youth and Workplace Wellness. CCCSIG was recognized in the small business category, for being on the forefront of providing employees a worksite environment that supports healthy choices, as well as recognizing the many programs and procedures that CCCSIG has in place for overall employee wellness. CCCSIG s overall attitude towards employee health, wellness and safety carries over to its member districts, through the health, safety, and claims services provided and our commitment to enhance the human and financial resources of its members in order to contribute to public education. CCCSIG Historical Tidbits California authorized the formation of Joint Powers Authorities (JPAs) in the mid-70 s in response to the hard insurance market, during which time Contra Costa County districts either couldn t find workers compensation insurance or were charged exorbitant rates for it. In 1977 Contra Costa County school districts formed CCCSIG, which is self-insured (fully governed and owned by the members) to provide affordable and stable rates for workers compensation. In 1995, CCCSIG moved from third party administration to self-administration for workers compensation, which improved outcomes for districts and services for employees through claims administration and health and safety services, and eliminated involvement by a for-profit administrator.

25 TOGETHER EVERYONE ACHIEVES MORE CCCSIG s Mission CCCSIG s Board of Directors The Mission of Contra Costa County Schools Insurance Group is to maximize the human and financial resources of our members in order to contribute to and enhance public education. To accomplish this mission CCCSIG has consistently engaged in strategic planning and goal setting. CCCSIG s Board of Directors includes one representative from each district to represent the needs of all members. Nine members of the Board serve as the Executive Committee (asterisks). CCCSIG Board of Directors (as of 10/15): Our five broad goals, directly supporting our mission, are: To promote a safe and healthy working environment. To actively engage all participants at all levels in cooperative efforts to achieve this mission. To implement effective cost containment activities. To administer programs that are fiscally sound and provide stable rates. To work together to maintain and celebrate a positive and productive work environment. CCCSIG s Vision CCCSIG wants to be known for: Providing fiscally responsible management and financial stability. Exercising cost-containment measures to reduce costs. Responsiveness to our customers. Being caring, efficient, proactive and the Joint Powers Authority others look to for example. Delivering professional services and managing program operations. Effectively promoting employee safety. Acting as a partner to local education. Educating medical providers. Visionary leadership and our "can-do" philosophy. Continually striving for improvement and better results. CCCSIG s CORE VALUES: COMMITMENT to proactively evaluate opportunities to enhance services and programs offered to benefit school district employees while lowering workers compensation costs. FLEXIBILITY through the exchange of ideas adapt to new situations and change to achieve success in our programs and enhance what we are today and into the future. TEAMWORK working together as one, collaborating with member districts focused on a common purpose to achieve excellence. QUALITY a characteristic defining what we continuously strive to achieve, representing the highest standards in our field and our individual areas of expertise, devoted to our purpose and foundation. *Sheri Gamba, President/West Contra Costa USD *Tim Forrester, Vice-President/Antioch USD *Margaret Kruse, Secretary/Brentwood USD *Eugene Huff, CCC College District *Bill Clark, CCC Office of Education *Lenee Cadotte, Lafayette SD *Kathy Bell, Moraga SD *Norma Gonzales, Pittsburg USD *Kevin Collins, Walnut Creek SD Julie Bautista, Acalanes Union High SD Wendy Richard, Byron Union SD Gloria Faircloth, Canyon Elementary SD Derek Pinto, John Swett USD Cindy Friedmann, Knightsen Elementary SD Liz Robbins, Liberty Union High SD Diane Deshler, Martinez USD Cindy Peterson, Oakley Union Elementary SD Teresa Sidrian, Orinda Union SD Keith Rogenski, San Ramon Valley USD Candi Clark, Ed. D., Castro Valley USD Andrea Stubbs, St. Helena USD Deborah Cooksey, Mt. Diablo USD CCCSIG would like to thank Chris Learned (recently retired from AUHSD) for his dedicated service. CCCSIG Board of Directors/Executive Committee (Since 2003), CCCSIG Board President (Since 2009). CCCSIG Staff CCCSIG s staff is experienced and dedicated to providing excellent customer service to member districts and their employees. CCCSIG s staff as of 10/15: