In 2020, Alabama Retail Comp will return $7 million to participants as part of its annual retrospective return.
“We are pleased to announce that we are, once again, making a significant return to participants,” said Rick Brown, fund administrator and Alabama Retail Association president. “Every dollar the fund returns helps lower the cost of doing business for our members.”
Since its inception in 1984, ARC has returned nearly $100 MILLION – 26 percent of all premiums collected – to its participants through what is known as its Retro Return plan.
“We joined the Alabama Retail Association for the benefit of being able to participate in the workers’ compensation plan,” said Jim Whaley, owner of Dothan-based Jim Whaley Tires Inc. “It best suits our needs.”
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.
Although a retrospective return is never guaranteed, Alabama Retail Comp is committed to conservative underwriting and aggressive claims management to continue returning funds to participants.
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.
Fund Manager Mark Young said, “At ARC, our goal is simple: To provide the most cost-effective workers’ compensation coverage to Alabama businesses with unparalleled customer service.”
Originally posted Dec. 22, 2019
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