April 13, 2000
Council's workers' comp trust shows strong growth; 26.5% dividend declared
The Business Council Insurance Funds Workers Compensation Trust showed strong growth in the first quarter of 2000, adding more than $1 million in total premiums, said Bob Crandall, The Councils director of member services.
The Councils trust has had a favorable loss experience since inception, and this strong performance has produced its first dividend, Crandall added. Manufacturers that were trust members in 1998 will receive dividends worth 26.5 percent of premiums they paid that year.
The fund added 165 members last year and has been averaging four new members a week this year, he said. Based on the current strong performance, a dividend for 1999 is also likely, Crandall added.
The trust helps manufacturers that are Council members save on workers
All New York employers must buy comp coverage for employees. Commercial insurers and the state Insurance Fund offer fully insured plans that must use the states manual rates.
In contrast, self-funded plans such as The Business Councils trust offer much lower initial annual rates and the potential of future dividends.
Crandall said manufacturers not participating in the trust should consider joining it to gain potential reductions in comp costs.
The trust is administered by First Cardinal Corporation, which administers 11 such trusts and is New Yorks largest trust administrator.