As you may recall, in March 2015, PSWCT’s Executive Advisory Board approved a base rate increase of 2% for the 2016 calendar year.
We believe this adjustment will ensure steady and predictable rates by protecting against wage and medical inflation while maintaining solid reserves to cover any unexpected events. An experience modification factor is then applied to the Trust’s base rate, as shown in the calculation below.
The experience modification factor is based on a member school district’s three-year loss history, and is the rate component over which districts have the most control. Implementing best practice risk reduction programs at your district can improve your loss history by making your workplace safer, thus reducing your rates.
Worker Hours x Base Rate x Experience Modification Factor = Contribution Requirements
In addition to this rate increase, the other factor affecting rates is the Department of Labor and Industries’ newly approved rates for the Supplemental Pension and Asbestos assessments and the Overpayment Reimbursement assessments, which are passed through to districts.
All of the changes for district 2016 rates are reflected on the Trust’s updated Contribution Transmittal Forms. This form will be sent to your district’s Finance contacts electronically by the end of December.
If you do not receive your contribution form, please contact Yukiyo Schnettler.