• When is the Schools Excess Liability Fund Workers' Compensation Assessment billed?

• What is the EWC assessment?

• What are the factors used in calculating the assessment?

• How long will it take to retire the assessment?

• Why is SELF using a 10-year collection period and not collecting it all at once?

• Why does my share of the assessment change from year to year?

• What might trigger a change in my fixed payment within the first five years?

• Can we pay all of our full assessment now, rather than over 10 years, and close out our obligation?

• Will the Assessment Policy be posted to SELF's Web site?

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• When is the Schools Excess Liability Fund Workers' Compensation Assessment billed?
  
  The invoices typically go out in July and members are given 30 days to submit payment..

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• What is the EWC assessment?
  
  The assessment is the shortfall between assets available to pay claims and the amount that will ultimately be paid out in claims for the SELF pooled layer. As of 2013, SELF has already paid $52.9 million in claim reimbursements to the members and expects to pay out another $93.2 million in member claim reimbursements in the future.

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• What are the factors used in calculating the assessment?
  
  The shortfall is calculated by program year as the sum of contributions, investment income, prior collected assessments less paid claims, case reserves Incurred but not Reported (IBNR) reserves and administrative costs. The deficiency within each year is allocated to members based upon their contribution level and regardless of their own claim exposure.

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• How long will it take to retire the assessment?
  
  Excess workers' compensation claims can take many years to resolve. Although our actuary predicts it will likely be decades before all claims are resolved, SELF's assessment plan is to stabilize the projected liabilities much sooner and to collect the full amount due within the next 10 years. As mentioned above, each program year is calculated separately for purposes of assessments.

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• Why is SELF using a 10-year collection period and not collecting it all at once?
  
  SELF examined several options before deciding to implement the 10-year model. Working with our actuary, the SELF Finance Committee developed payment structures for retiring the deficit for five, 10 and 15 years. SELF felt that the 10-year model offered both the affordability and stability of payments our former program members were seeking. Additionally, the deficiency is an estimate. It is not a cash need today. SELF has sufficient funds to meet the current reimbursement needs in the program and the SELF Board recognizes that its members can put the cash to better use in their own organizations rather than give it to SELF to hold and invest until needed.

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• Why does my share of the assessment change from year to year?
  
  As mentioned above, the deficiency is based on an actuarial estimate which can change from year to year. As the claims mature and members' claims administrators provide more accurate and timely information to SELF, we expect the assessment to stabilize. As a result of the adoption of the 10-year model, each members' individual annual installment will remain fixed for the first five years, even though the total required assessment will be recalculated annually based on the actual investment earnings, expenses, assessment collections and updated actuarial analyses.

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• What might trigger a change in my fixed payment within the first five years?
  
  The total required assessment will be recalculated annually based on the actual investment earnings, expenses, assessment collections and updated actuarial analyses. If the total estimated ultimate loss for all program years increases or decreases by more than 10% or, if there is a change or event that materially impacts the net assets of the program, the total would be recalculated and presented to the SELF Board for consideration of an adjustment to the annual assessment amount.

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• Can we pay all of our full assessment now, rather than over 10 years, and close out our obligation?
  
  As a pool, all members are equally obligated to pay their proportional share of the assessment. If the assessment changes in the future, members would still be obligated for any increase. However, SELF is investigating various methods which might permit members to pay their estimated portion of the liability at an earlier date.

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• Will the Assessment Policy be posted to SELF's Web site?
  
  Yes. The policy, as it appears in SELF's Policy and Procedures Manual, can be found by clicking here.