Update on TASB RMF Board of Trustees April Meeting
By June Kissinger
The Fund’s Board of Trustees met on April 17, 2011, at the Hyatt Regency in Austin, TX. After approval of the minutes, the Audit and Finance Committee reported on the following items to the full Board:
- The Fund’s financial statements as of February 28, 2011, showed an increase of members’ equity of $18.4 million from August 31, 2010. The strong numbers are due primarily to two factors: 1) strong investment performance and 2) reserve reductions in the Fund’s property and workers’ compensation programs.
- The Fund’s investment report
The Committee also presented the following action items to the Board, which the Board approved:
- A change to the Fund’s investment policy
- Approval of a new mutual fund
- Engagement of Deloitte and Touche for the Fund’s 2010-11 audit
The Claims Committee presented a report on the Fund’s external claims audit conducted by Bickmore Risk Services, an independent consulting firm. The final audit report indicates that TASB’s claims administration services exceed best practice expectations with overall performance scored at 99 percent for property and liability claims and 99 percent for workers’ compensation claims.
The Claims Committee also presented the annual report on the performance of the Fund’s pharmacy benefit manager, Progressive Medical, Inc. (PMI). They reported the Fund’s total savings in the workers’ compensation program continues to exceed PMI’s national book of business. The Fund enjoys a 43 percent savings rate, compared to 28 percent for PMI’s national book of business.
Finally the Committee presented the following action items to the Board, which the Board approved:
- Approval of workers’ compensation seasonal adjustments for temporary income benefits
- Approval of Celebrex settlement distribution
The Member Services Committee reported the following items:
- A report on the Members’ Conference activities
- A report on the 2011 Innovation Award winners
- A report on the Loss Prevention Grant program
The Committee also presented the following action items, which were approved by the Board:
- Approval of the 2009-10 property stop loss program
Dubravka Romano, associate executive director, Risk Management Services, TASB, discussed the 2011-12 funding plan, which is normally approved at the April Board meeting. The Board directed TASB staff to develop a funding plan using the Fund’s members’ equity to provide budgetary relief and stability to the Fund’s members over the coming biennium. Staff will bring this plan to the Board in June for their consideration.
Prior to adjourning to executive session, the Board heard and approved an amendment to the 2010-11 administrative fee. Staff also presented a report on a new interlocal participation agreement and gave a legislative update.
If you have any questions about this report, contact June Kissinger at 800.482.7276, ext. 3545.
