NYSAC Enters the WC Market with New Partner PERMA

Monday, November 14, 2011 | 0

Rate increases, mid-year assessments for pool members, State Comptroller audits pointing to the need for reserves and actuarial studies, the risks inherent in local government operations, dwindling fund balances, the state’s new property tax cap.

All of these were among the reasons, the New York Association of Counties (NYSAC) was asked to establish a program to help confront the challenges facing our county workers' compensation pools.

These challenges stem directly from the state-mandated benefit increases that were part of the 2007 workers compensation reforms. These “reforms” are increasing rates, and have forced counties to increase assessments to pool members which are, in certain  circumstances, testing the market to see if they can get lower rates from an insurance program.

In response, NYSAC has partnered with the largest and strongest provider of workers compensation programs for municipalities in New York State—the Public Employer Risk Management Association (PERMA). The partnership is designed to provide counties with the option to strengthen, not replace, their current pool infrastructure and municipal management team.

PERMA has nearly 30 years of experience providing workers’ compensation coverage to New York’s counties and local governments. They provide comprehensive workers’ compensation and risk management services to nearly 500 municipalities, including 140 members in self insured county pools.

PERMA’s strong fiscal foundation includes more than $150 million in assets, and $40 million in annual revenues. Its success is based on building long-term relationships, implementing prudent investment strategies, adhering to consistently transparent financial disclosure practices and a renewing 98 percent of their members annually. This is a true win-win partnership.

Over the past several months, NYSAC has worked with PERMA and to develop programs that will enable counties and county pools to stabilize rates, reduce the number and length of claims and develop risk management initiatives that will decrease the frequency and severity of accidents.

This NYSAC/PERMA partnership can provide a bridge to counties or county pools that are exploring the option of moving from the current pay-as-you-go system to a more fully insured model of workers’ compensation financing. The pool is designed to provide an opportunity for a single county entity or for an entire pool to come into the program.

<i>Mark LaVigne is deputy director of the New York State Association of Counties. This column was reprinted with his permission from NYSAC's website.</i>