Summary

The Fund's financial position is extremely strong. It can be argued that for a non-profit group self-insurance pool, the Fund is holding too much surplus. However, we must recognize that workers compensation laws and benefits have been cyclical in favor of the employer or employee. A shift in the attitude of state government to a more pro labor stance could soon result in benefit increases or mediation awards that exert upward pressure on loss reserves and ultimate claim counts.

The Board of Trustees adopted a long-term dividend distribution plan that will result in dividend requests of $7.0 million or more. The Fund's dividend requests have been larger than any other group self-insurance program in Michigan, and probably will continue to be so. The combination of competitive rates and stable dividend distributions will be successful in keeping stable financial performance for the Fund.