november 5, 2013 gemc workers’ compensation fund trustee meeting

Georgia Electric Membership CorporationWorkers’ Compensation Fund

November 5, 2013GEMC Workers’ Compensation

Fund Trustee Meeting

Georgia EMC Workers’ Compensation Fund Trustee Meeting Conference Call

• Gary Miller Call Meeting to Order

• Tonya Washington Roll Call

Determination of Quorum

• Gary Miller Motion on April 17, 2013 Trustee Meeting Minutes

» All in Favor

Investment Committee ReportThe Investment Committee met via conference call on October 7, 2013

•The following items were reviewed, discussed and approved:

Reviewed the Fund’s Portfolio Current Economic Conditions and Outlook Reviewed the Fund’s Investment Guidelines Reviewed and Approved the Fund’s Purchases

and Sales from March 20, 2013 through September 30, 2013

Reviewed Fund’s Portfolio and Performance

• Fund’s Portfolio as of Sept. 30, 2013 Current Market Value $11,575,148

Current Cost Value $11,152,312

Unrealized Gain $ 422,836

Estimated Income $ 382,485

Reviewed Fund’s Portfolio and Performance

Investment Committee Report You were furnished an electronic copy of

all purchases and sales for the Fund from March 20, 2013 thru September 30, 2013

The total purchases and sales were as follows:Bonds Matured $ 575,000Bonds/Stocks Sold $ 634,663Total Matured/Sold $ 1,209,663 Total Purchases $ (805,593)

Investment Committee Report

These maturities, purchases and sales and were reviewed and approved by the Investment Committee

Any further discussion

»All in favor

Executive Committee Report• Executive Committee Meetings:

Met October 8, 2014 to review and approve the Georgia EMC Workers’ Compensation Fund 2014 Budget

Met July 22, 2013 to approve North Georgia Network’s Membership in the Fund

2014 Georgia EMC Workers’ Compensation Fund Budget

Budget Comparison 2013 Projected Actual

Description 2014 Budget 2013 Budget

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

Projected Actual to Budget $

Projected Actual to Budget %

Insurance Placement 1,096,524 1,009,406 1,021,977 87,118 8.63% 12,571 1.25%

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

Consulting Services 89,000 109,000 89,596 (20,000) -18.35% (19,404) -17.80%

Personnel & A&G Costs 617,246 628,084 714,817 (10,839) -1.73% 86,733 13.81%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

2013 Projected

Actual

Net Change in 2014

Budget $

Net Change in 2014

Budget %

TPA Services 141,450 138,000 138,000 3,450 2.50% - 0.00%

SITF 290,000 290,000 276,026 - 0.00% (13,974) -4.82%

State Board of WC 93,000 85,000 90,128 8,000 9.41% 5,128 6.03%

2,327,220 2,259,490 2,330,544 67,730 3.00% 71,054 3.14%

Executive Committee Report

The 2014 Georgia EMC Workers’ Compensation Fund Budget was approved by the Executive Committee

Any further discussion

»All in favor

Executive Committee Report New Member

We are pleased to announce North Georgia Network has requested membership in the Fund

The Executive Committee approved North Georgia Network’s application for Membership effective August 1, 2013

Any further discussion on the matter

»All in favor

Fund Transition• Effective February 28, 2014 I will be

retiring

• Tony Watkins will be taking the lead role for the Fund’s activities Effective January 1, 2014, Tony Watkins’ title

will be changed to Chief Operating Officer

Mary Wellman will assume the duties for the Fund’s financial reporting and report to the Chief Operating Officer

Fund Transition• Additional items to be addressed

The Georgia EMC Workers’ Compensation Fund Bylaws need to amended reflecting title changes for Fund operations. A copy of the amended marked-up bylaws have been furnished for your information

Need a motion to amend the bylaws changing the management of the Fund from the Chief Financial Officer to the Chief Operating Officer effective January 31, 2013• Second• All in favor

Fund Transition• Additional items to be addressed

Check signing authority needs to be provided for the Chief Operating Officer» Need motion providing check signing

authority for Chief Operating Officer effective January 31, 2013

• Second• All in favor

Financial Highlights September 30, 2013

Total Assets Total Assets$13,426,040 $12,702,809

Reserves & Liabilities Reserves & Liabilities$10,565,424 $10,233,882

Surplus Surplus$2,860,619 $2,468,928

September 30, 2013 December 31, 2012

Surplus By Year As Of September 30, 2013

($50,000)

$200,000

$450,000

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 82/94

Surplus

Surplus/IBNR By Year As Of September 30, 2013

($50,000)

$150,000

$350,000

$550,000

$750,000

$950,000

$1,150,000

$1,350,000

$1,550,000

$1,750,000

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 82/94

Surplus IBNR

Earned

Premium

Net Claims

Claims

Reserves

Claims Paid

& Reserved

Financial

Surplus

Claims

2013 5,060,496 1,780,147 3,472,808 5,252,955 (37,427) 276 123 103.80%

2012 6,792,424 1,887,290 848,590 2,735,881 262,535 343 15 40.28%

2011 6,451,109 2,552,580 496,684 3,049,264 160,516 371 9 47.27%

2010 6,169,447 2,359,760 967,509 3,327,270 235,245 437 13 53.93%

2009 6,313,430 3,649,009 472,140 4,121,149 36,168 512 3 65.28%

2008 6,370,328 2,623,516 385,604 3,009,121 7,043 516 4 47.24%

2007 5,647,078 2,847,982 71,262 2,919,244 551,159 513 1 51.69%

2006 4,965,595 1,506,571 67,439 1,574,010 328,189 468 2 31.70%

2005 5,158,207 2,361,825 - 2,361,825 337,908 493 - 45.79%

2004 4,887,895 2,391,850 773 2,392,622 191,221 544 1 48.95%

2003 3,949,730 1,202,711 - 1,202,711 50,805 502 - 30.45%

2002 3,550,964 766,186 - 766,186 72,563 521 - 21.58%

2001 3,701,507 1,439,534 - 1,439,534 75,099 607 - 38.89%

2000 3,474,228 1,027,565 - 1,027,565 51,280 578 - 29.58%

1999 3,629,224 1,760,164 - 1,760,164 68,987 570 - 48.50%

1998 3,543,666 1,606,456 275,708 1,882,164 (31,474) 615 5 53.11%

1997 3,426,846 1,129,568 48,241 1,177,810 18,026 552 1 34.37%

1996 3,524,782 892,925 - 892,925 69,385 620 - 25.33%

1995 3,370,421 2,108,024 - 2,108,024 104,443 679 - 62.54%

82/94 27,201,288 14,082,872 134,866 14,217,738 308,947 8,680 3 52.27%

Total 117,188,665 49,976,535 7,241,626 57,218,161 2,860,618 18,397 180 48.83%