File #: 22-1453    Version: 1 Name:
Type: Informational Report Status: Passed
File created: 10/21/2022 In control: County Administrative Office
On agenda: 11/29/2022 Final action: 11/29/2022
Title: Resolution Establishing Reserve Funding Levels for Self-Insurance Funds
Attachments: 1. Staff Report, 2. Self-Insurance Sub Fund Resolution, 3. Bickmore Actuarial Report GL 10.25.19
To: Board of Supervisors

From: County Administrative Office

Agenda Section: Consent

SUBJECT:
title
Resolution Establishing Reserve Funding Levels for Self-Insurance Funds
end

RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Adopt the attached resolution establishing reserve funding levels for the County of Humboldt's self-insurance funds at the 80% confidence level; and
2. Direct the Clerk of the Board to provide the County Administrative Office with fully executed certified copy of the attached resolution.

Body
SOURCE OF FUNDING:
Self-Insurance Internal Service Funds (3520, 3522, 3523, 3524, 3525, 3526, 3527, 3528); All County of Humboldt Funds

DISCUSSION:
California Government Code Section 29000, the County Budget Act, sets forth that fund reserves will be established by the Board of Supervisors, which applies to the County of Humboldt's eight self-insurance internal service funds:

* 3520-359 Risk Management Administration
* 3522-352 Employee Benefits
* 3523-353 Workers' Compensation
* 3524-354 Liability
* 3525-355 Medical Plan
* 3526-356 Dental Plan
* 3527-357 Unemployment
* 3528-358 Purchased Insurance Premiums

Section 200.447 of Title 2 of the Code of Federal Regulations requires that contributions to self-insurance reserves must be based on sound actuarial principles using historical experience and reasonable assumptions. These funds are further required to undergo actuarial review biennially at minimum.

Bickmore Actuarial completed an actuarial review on October 25, 2019, wherein Bickmore was recommended maintaining reserves at an amount that the actuarial has determined has an 80% probability, or confidence level, would be sufficient to meet actual claim liabilities.

The recommended action before the Board today is to adopt a resolution establishing that the County of Humboldt will target maintaining program assets (or reserves) in the self-insurance funds at the 80% confidence level, or probability, as requ...

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