Professional Documents
Culture Documents
Standard 2014 Renewal proposed for the 1/1/2014 12/31/2015 period: Basic life (non-judicial): 0% increase
MERCER
17
Increase 17%
Increase in retention as a % of Premium General expenses increased from 3.6% to 4.0% Claims administration increase from 6.1% to 8.6% Risk charges increased from 1.0% to 2.0%
MERCER
18
100%
Paid claims
$5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2008 2009 2010 Plan Years Paid Claims Loss ratio 2011 2012
80%
60%
40%
20%
0%
MERCER
19
Projected PDA balance as of 12/31/15 (subject to final accounting for STD/LTD/optional life coverages (1/1/14 12/31/15)
$1,197,275
$2,466,914
PDA is cash balance held by Standard to be used at PEBBs discretion. Implications of buying down the rates are that the funds are not available for future use and employees would potentially experience a larger one time rate increase at a later date.
MERCER April 12, 2013
20
Plan 2
60% benefit, 180-day BWP
Plan 3
66% benefit, 90-day BWP
Plan 4
60% benefit, 180-day BWP
Increase in retention as a % of Premium General expenses increased from 3.5% to 7.7% Claims administration increase from 6.9% to 8.5% Risk charges increased from 2.0% to 3.0% Standard initially requested a 15% increase in LTD rates. Agreed to lower the overall increase to 8.2% because of the remaining Claim Fluctuation Reserve (CFR) account. Standard uses the CFR to cover deficits created by plan experience. As the CFR is drawn down the protection against bad experience is depleted and will likely require Standard to increase risk charges at future renewals (should claims experience not improve) Potential implication is a larger rate increase at future renewals
MERCER April 12, 2013
21
Paid claims
MERCER
22