Updates to Rate Stabilization Fund (RSF) Processes
RSF calculation process changes to a five-year cycle & RSF statements can now be found online.
During the January 31, 2023, Executive Committee meeting, CEO Andy Sells detailed the current fiscal year’s Rate Stabilization Fund (RSF) calculations and expected refunds for approval. These refunds were the result of an adjustment to how Retrospective Premium Adjustments (RPAs) are calculated.
Up until this point, RPAs for the Liability, Property, and Workers’ Compensation programs were factored into RSF calculations once the policy years had developed four years from the beginning of the policy year. Upon further analysis, it was evident that this period was just too soon, and that a five-year period from the end of the policy year would ensure better development of the policy year. This change aims to curb future volatility in RPA calculations.
For the fiscal year ending September 30, 2022, the refunds total just over $260,000 and cover 66 members. These refunds were approved by the Executive Committee. Refund checks, if applicable, will be mailed to member agencies in April 2023.
In addition, while full RSF statements have previously been mailed to members, starting in 2023 an RSF summary will be mailed to each member. Members can log into the JPIA Portal to access their full RSF statements. An email detailing this change and reminding members how to access their online portal was sent in early April 2023. For questions regarding how to access the online portal, please contact Chris Light, Business Data Analyst, at: email@example.com
Written by: Dan Steele, Finance Manager
Read other April Perspective articles at: https://www.acwajpia.com/marchaprilperspective/