Res 1985-042 - Laserfiche WebLink

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11. As the administrators of the self-insurance Fund, the Board shall primarily and constantly keep foremost in its deliberations and decisions in operating the Fund that each of the participating Employer Members is a "self-insured." At least annually. the Board shall carefully review, study and consider the actual claims or loss experience (including reserves for' future c1aims payments) of each of the Employer Members, the experience rating modification developed or earned by each of the Employer Members, the pro rata savings to the Fund resulting from overaff loss experience attributed to each Employer Member, and the pro rata portion of the cost of all catastrophic loss protection reinsurance and aggregate stop loss reinsurance allocated to each Employer Member, as well as the pro rata allocation, as determined by the Board of the other and necessary administrative expenses of the Fund, in order to reasonably determine the actual pro rata cost. expense and loss experience of each Employer Member in order to maintain as nearly as possible an equitable and reasonable "self-insurance" administration of the Fund as applied to each Employer Member. The Fund shall maintain case reserves and supplemental reserves computed in accordance with the standard actuarial principles, taking into account historical and other data. designed to measure claims development and claims incurred but not yet reported, so that funds will be available to meet these claims as they become due. The Fund shall also establish and maintain a reserve for Return of Contributions to insure further the fiscal integrity of the Fund in the event of a potential. adverse loss development. This Reserve shall be calculated on a Fund Year basis. and shaH be held for twelve (12) years period in decreasing amounts computed as a percent of standard contributions, as follows: 10% First Fund Year Past 10% Second Fund Year Past 10% Third Fund Year Past 8% Fourth Fund Year Past 6% Fifth Fund Year Past 4% Sixth Fund Year Past 2% Seventh Fund Year Past 2% Eighth Fund Year Past 2% Ninth Fund Year Past 2% Tenth Fund Year Past 2% Eleven1h Fund Year Past 2% Twelfth Fund Year Past 0% Thirteenth Fund Year Past The Fund shall determine its net income for federal income tax purposes at the close of each Fund Year. The Fund's income so determined shall be distributed to Employer Members. as soon as practical. following the close of the Current Fund Year, pursuant to the following distribution formula: The Fund shall distribute to Employer Members the ~um of the Current Fund Year Savings and the Additional Fund Year Savings. Current Fund Year Savings shall equal the excess of contributions and other Fund income, over (a) incurred losses (less reinsurance losses), including the amount of any Actuarial Reserves, expense and other amounts which are allowable as deductions for federal income tax purposes, (b) the amount. if any, of any Actuarial Reserves for the Current Fund Year in excess of the addition to these Reserves allowable as deductions for federal income tax purposes for the Current Fund Year. and (c) the Reserve for Return of Contributions for the Current Fund Year; Additional Fund Savings shall equal (a) amounts. if any, included within Actuarial Reserves for any prior Fund Year, the retention of which on an actuarial basis is no longer necessary, and (b) the.sum of the net decreases, if any. in the Reserve for Return of Contributions for each Fund Year prior to the Current Fund Year after adjustment for loss development attributable to such prior Fund Year. The Fund shall issue a certificate to each Employer Member which shall evidence its share of the Fund's net income, as determined for federal income tax purposes, which is retained and to be returned under the formula for distribution of such net income. A certificate shall be issued under this procedure for all prior Fund Years. , 2. The Employer Member executir. 9 this Agreement shall designate in the following space the seating capacity of any aircraft presently owned or leased by that Employer Member. Further, the Employer Member agrees to notify the Fund within fifteen (15) days if any new aircraft are purchased or 'easef ~urinPJ..the term of this Agreement. and the seating capacity of said newly acquired aircraft. Not app ~cab e.