On June 10, 2016, the ACCG – Group Self-Insurance Workers’ Compensation Fund (GSIWCF) Board of Trustees declared a one-time special return in the amount of $5 million to those members that currently participate in the Fund and who have participated since 2014. ACCG began delivering payment, in the form of checks ranging from slightly more than $100 to over $200,000, to eligible counties and authorities on August 1, 2016. The amount of each participant’s return is based on the amount of premium paid in 2014.

 

"We welcome the opportunity to recognize our loyal program participants and reward longevity in our programs," said ACCG Executive Director Ross King. "Over 166 counties and authorities trust ACCG to provide for their workers’ compensation insurance needs through our well-established and respected program that specializes in the needs of Georgia county governments."

 

 

Although this is the first time that a cash return has been declared, ACCG-GSIWCF has returned dividends 27 times, totaling almost $60 million, since the program began in 1982. A dividend in the form of a premium credit has been returned every year since 1996.

 

"This action underscores the benefit of participating in a county-owned program," said ACCG President and Elbert County Chairman Tommy Lyon. "We have the flexibility to share a portion of these gains with the membership whereas a commercial carrier would likely have kept the profit or distributed it to its shareholders."

 

According to David Uhlman, Director of Property & Casualty Insurance Programs, "The $5 million return is unique because it is being given to the membership in cash. Although we encourage counties and authorities to use the proceeds to make Georgia counties safer places to work, there are no strings attached and each county or authority can determine how they can best use the return."

 

When asked why cash was available for the special one-time return, Uhlman explained that the Fund collects enough premiums each year to pay the anticipated claims that will ultimately be filed. Although some benefits are paid soon after the premiums are collected, some injuries are long-term and benefits may not be needed for 8-10 years or more. The cash that is not needed immediately is invested and results in investment income to ACCG-GSWICF. The number of firms that invest money on behalf of ACCG-GSIWCF was recently reduced from three to two. The money manager who was eliminated sold assets so that the funds could be transferred to the remaining money managers. The result was an influx of realized gains. After listening to advice from consultants, investment advisors, actuaries, and ACCG staff, the Board of Trustees agreed that $5 million could be returned to the membership without affecting the stability of the program, and the return was declared.

 

The Workers’ Compensation Board of Trustees, chaired by McDuffie County Commissioner Fred Favors, includes White County Chairman Travis Turner (vice chairman), Emanuel County Chairman Desse Davis, Lumpkin County Chairman Chris Dockery, Henry County Commissioner Bruce Holmes, Newton County Commissioner Nancy Schulz and Morgan County Vice-Chairman Ellen Warren.

 

"We are very excited to have the opportunity to allot this special one-time return to the membership," said GSIWCF Board of Trustees Chairman and McDuffie County Commissioner Frederick Favors. "This is an excellent example of one of the many benefits of participating in county-owned insurance programs that are administered by ACCG."