The Eagle Workers Compensation Trust

The Eagle Workers’ Compensation Trust is a qualified self-insured program which started in 1995. A core group of PAR member agencies desired to gain control over their workers compensation costs instead of leaving it in the hands of  the insurance industry. The Board of Trustees is composed of PAR member agencies who have foreseen the benefits of pooling resources and taking reasonable risk.  It is governed by a Trust Indenture, By-laws, and Policy Statements, which reflect a conservative business philosophy and position the Trust for stable, long-term growth. There are quarterly board meetings.

Structure

In effect, the Trust is an insurance company.  The service components are judiciously chosen by the Board of Trustees with the assistance of Genesis Asset Protection.  The major components include:

Operational and Claims Administration- Genesis Asset Protection and Eagle Trust Management orchestrate the activities of the enterprise; closely working with the members; medical professionals and legal counsel in assuring the equitable management of the claims.

Risk Control- PMA Management assists the Trust members in accident prevention - - the most effective means for reducing Workers’ Compensation costs.  PMA professionals personally visit with Trust member’s management so that immediate feedback can be given on an existing safety program.

Actuarial Services-The financial integrity of the program rests upon credible claims and expense forecasting. Alliance Actuarial furnishes a diligent and practical approach to its actuarial development.  Their professional assessment lends further confidence in the Trust’s funding mechanism

Other Service Providers - Wachovia, a leading financial institution, is the caretaker of the funds and invests the Trust assets in a blended mix of investment vehicles. Other service providers include: Schnader, Harrison, Segal and Lewis, LLP providing legal services; and Kreischer Miller, providing auditing services. 

Program Advantages

Since they own the “company”, the Trust members exert much control over the type and extent of services provided.  They also gain leverage in the purchase of such services by their pooling.  Additional advantages include:

• Operating expenses are held to an absolute minimum without sacrificing program effectiveness.
• All surplus generated by the program is returned to the members via an equitable formula.
• Just as insurance companies, the Trust members earn investment income on funds which are held.
• Rates are established independently from statutory via an annual reporting to the Bureau of Workers Compensation.
• There is a sharing of ideas with agencies which share common challenges.