MONTGOMERY – Alabama Retail Comp will return more than $7.6 million to qualified participants in 2016. The 2016 retro-return will be distributed to participants as a credit on their premium contribution for the 2016 fund year, which begins Jan. 1. The annual return can represent as much as a 20 percent to 30 percent credit toward a participant’s contribution.
“We are pleased to once again bring great 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 MORE THAN $72 MILLION – 22 percent of all premiums collected – to its participants through its retrospective return plan. As the need to hold money in reserves to pay claims decreases in a given year, that year’s participants receive money back as a credit on their next renewal. The retrospective rating plan 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’s loss ratio. Lower losses return a higher retro credit at renewal, rewarding participants for providing a safe work environment.
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.”
Alabama Retail Comp is the self-administered, self-insured workers’ compensation fund sponsored by the Alabama Retail Association. The Alabama Retail Association represents retailers, the largest private employer in the state of Alabama, before the Alabama Legislature and the U.S. Congress. Its 4,100 independent merchant and national company members sell food, clothing, furniture and other general merchandise at more than 6,000 locations throughout Alabama. Almost all of the association’s members participate in Alabama Retail Comp, the state’s most stable, cost-effective workers’ compensation insurance program for retailers. The program 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.
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