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2021-22 Workers Comp Indication LetterMarch 25, 2021 Mr. Scott Carroll General Manager Costa Mesa Sanitary District 290 Paularino Avenue Costa Mesa, California California Dear Mr. Carroll, We sincerely appreciate your continued support of SDRMA and patience in waiting for the 2021-22 rates while we are working on obtaining renewal costs from the program excess/reinsurer carriers. At the SDRMA Board of Directors meeting of March 24, 2021, the Board approved a FY 2021-22 longevity distribution of $2,179,568. This action marks the twelfth consecutive year of longevity distributions. Members eligible to receive a longevity distribution at renewal must have been members of the Workers’ Compensation Program for not less than three full program years as of June 30, 2020 and have a calculated EMOD of 150% or lower or a 10-year loss ratio of 1.00 or less. The longevity distribution may be declared by the Board each year only after all Board policy reserve requirements have been met. The distribution is weighted based on the member’s length of time in that program and the amount of the member’s annual contributions compared to the total contributions of all pool members. To assist your agency in its budgeting process, SDRMA has estimated 2021-22 annual contribution amounts using your agency’s applicable Individual Class Code Rates, Experience Modification Factor (EMOD), 2021-22 Estimated Payroll Wages submitted on Renewal Questionnaire, and Longevity Distribution and Multi-Program discounts (if applicable). Your agency’s actual contribution amount for 2021-22 will vary from 2020-21 due to variances in your reported payroll, EMOD (worksheet and applicable loss run years detail attached), and Credit Incentive Program (CIP) points earned. 2020-21 2021-22 Estimated Payroll Wages $1,785,556 $2,028,500 EMOD 122 %167 % Annual Gross Contribution (before discounts)$68,508 $109,431 Longevity Distribution -$790 -$4,786 5% Multi-Program Discount -$2,872 -$4,741 Other Important Items to Note: Members receive an automatic Multi-Program Discount of 5% per program (Property/Liability and Workers' Compensation) while they belong to both programs. Your annual contribution provides your agency with access to safety and loss prevention resources, and trainings that are provided at no additional cost, including Target Solutions, ergonomic assessments, discounted CSDA Conferences and trainings, free CSDA webinars, and safety DVDs. Members considering withdrawal from coverage with SDRMA for the 2021-22 program year are required to submit a "Notice of Intent to Withdraw" by April 1 in accordance with SDRMA Bylaws and must have completed the initial three full program year commitment period. Members not renewing coverage for 2021-22 will be ineligible to receive the longevity distribution credit recently approved by the Board. On behalf of the Board of Directors and our entire risk management team, we thank you for your continued participation in our programs! If you have any questions, please contact Jennifer Chilton at jchilton@sdrma.org or 800.537.7790. Sincerely, Special District Risk Management Authority Laura S. Gill Chief Executive Officer Attachments: 2021-22 EMOD worksheet, Reported Class Codes