Alabama Retail Comp to Return Almost $6.6 Million

2014 Return is Largest ARC Retro Return Ever

MONTGOMERY – Alabama Retail Comp will return almost $6.6 million to qualified participants in 2014, an amazing 20 percent more than last year’s return. The retrospective return is the largest in the fund’s 29-year history and represents the 10th straight year of return growth.

AlabamaRetailCompblk541wEmbossBug-300x218The board of trustees of Alabama Retail Comp, the self-administered, self-insured workers’ compensation fund sponsored by the Alabama Retail Association, voted recently to distribute the $6,589,290 in the 2014 fund year, which begins Jan. 1.

The 2014 retro-return will be distributed to participants as a credit on their premium contribution for 2014. The annual return can represent as much as a 20 percent to 30 percent credit toward a participants’ contribution.

“We are pleased to once again bring some good economic news to our members by providing this retro return, which will help lower the costs of doing business for our members and increase the Benefit From the Value they get from their workers’ compensation coverage and their membership in the Alabama Retail Association,” said Rick Brown, the fund’s administrator and president of the Alabama Retail Association.

Since its inception in 1984, ARC has returned ALMOST $57 MILLION – 21 percent of all premiums collected – to its participants through its retrospective return plan. The retrospective rating plan provides a controlled method for the fund to return 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 amount of credit a participant receives is tied directly to the business’ loss ratio. Lower losses mean a higher retrospective credit at renewal. This acts as an incentive for participants to provide a safe work environment.

A business’ retrospective return is determined by several eligibility requirements that include:

  • Having been a participant in the fund during the fiscal year to which the return applies; and
  • Being a current participant in the fund with continuous participation from the fiscal year to which the return applies until the fiscal year of the distribution of the retrospective return.
  • Having less than a 70 percent loss ratio for the fund year(s) in which retrospective return applies.

Alabama Retail Comp, the state’s most stable, cost-effective workers’ compensation insurance program for retailers, is regulated by the Alabama Department of Labor and governed by a board of trustees who are fund participants. While ARC specializes in the retail industry, it also provides coverage to many employers in an array of different classifications of business.

“At ARC, our goal is simple,” said Fund Manager Mark Young, “To provide the most cost-effective workers’ compensation coverage to Alabama businesses with unparalleled customer service.


Media Contact: Mark Young | 334.551.0690 | 800.239.5423