Education Code Section 42141 requires that, among other things, if a school district is self insured for workers compensation, either individually or as a member of a joint powers agency that it will publicly disclose on an annual basis the estimated accrued but unfunded cost of its workers compensations claims. The estimated accrued but unfunded costs of workers compensation claims must be based on actuarial report obtained by the district at least every three years.
Because the Santa Barbara Unified School District (SBUSD) is self insured for workers compensation through SISC I--a joint powers agency--premiums and claims are pooled with other SISC I member districts. As a result, the burden to comply with reporting requirements required under this code section falls on SISC I, rather than on the district. Accordingly, SISC I hired Advanced Risk Management Techniques, Inc. (ARM TECH)/Aon Risk Consultants to perform the actuarial. Based on the projected financial position of SISC I as of June 30, 2013, there were no estimated accrued but unfunded costs for any of the member districts (see attached memo).
The SBUSD has received the attached letter confirming that SISC I Workers’ Compensation JPA has a positive fund balance. The balance includes sufficient reserves to enable the SBUSD to be in full compliance with the workers’ compensation portion of Education Code 42141.