In 2022, Alabama Retail Comp will return $8.1 million back to our participants through our retro return! Since its inception in 1984, Alabama Retail Comp has returned more than $115 million.
ARC’s retrospective rating plan is a controlled method of returning 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 retro return is determined on a policy year basis and given as a credit on renewal contributions. Many participants see returns of more than 30% of their premium. 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.