The retrospective rating plan is a controlled method of returning to Alabama Retail Comp participants’ excess funds accumulated due to favorable operating experience. The retrospective rating plan uses an actuarial formula that takes into account individual participants experience versus the experience of the Fund as a whole.
The retrospective return is determined on a fiscal year basis to eligible participants. Retrospective returns will be given as a credit on renewal contributions. If a participant withdraws from the Fund during a Fund Year, the retrospective return will be prorated to the withdrawal date.
Since its inception in 1984, Alabama Retail Comp has returned more than $78 million to our participants. The amount of credit you receive is tied directly to your loss ratio. The lower your losses are as a percentage of your contribution, the higher your retrospective credit at renewal. This is your incentive to provide a safe work environment.