Retro Return: Alabama Retail Comp to return $8.1 million in 2022

Alabama Retail Comp will return $8.1 million in 2022 to participants as part of its annual retrospective return, the largest return ever.

Rick Brown

We are pleased that we are returning a historic amount to participants,” said Rick Brown, fund administrator and Alabama Retail Association president. “Every dollar the fund returns lowers the cost of doing business for our members.”

Since its inception in 1984, ARC has returned more than $115 MILLION – 28%  of all premiums collected – to its participants through what is known as its Retro Return plan.

Each Retro Return is composed of excess funds ARC’s trustees have set aside from previous fund years. As the need to hold money in reserves decreases in a given year, that year’s participants receive money back as a credit on their next renewal. The retrospective rating plan uses an actuarial formula that takes into account individual participants’ experience versus the experience of the Fund as a whole. Lower losses return a higher retro credit at renewal, rewarding participants for providing a safe work environment.

April McClung

Although a retrospective return is never guaranteed, Alabama Retail Comp is committed to conservative underwriting and aggressive claims handling to continue returning funds to participants.

I find Alabama Retail Comp has the most competitive workers’ comp rates,” said APRIL McCLUNG, owner of EMILY’S HEIRLOOM POUND CAKES in Homewood, a member since 2017.

More than 4,300 Alabama Retail members participate in the fund. ARC specializes in the retail industry, but also provides coverage to an array of business employers.

Brown added, “At ARC, our goal is simple: To provide the most cost-effective workers’ compensation coverage to Alabama businesses with unparalleled customer service.”

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Learn more about the Retro Return

Originally posted 6 a.m. Nov. 1, 2021