The Delaware Valley Workers' Compensation Trust is a regional risk sharing pool providing coverage for work-related injuries and illnesses for employees of participating members. The Trust was formed under the authority granted by the Pennsylvania Workers' Compensation Law as amended and the Pennsylvania Intergovernmental Cooperation Law. The Commonwealth of Pennsylvania, Department of Labor & Industry regulates the Trust.
The DVWCT began operations with twenty-seven charter members in January, 1992 after a year and a half study by a predecessor safety group, the Delaware Valley Workers' Compensation Cooperative. The Cooperative provided coverage through commercial insurers and captives for more than ten years prior to helping form the Trust.
DVWCT is governed by a Board of Trustees comprised of a representative from each member municipality. The governing body of each municipal member selects an appointed or elected official to serve as a Trustee on the Board of Trustees. Each municipality receives one (1) vote on the Board; voting is not weighted. The Trustees elect five officers to serve on an Executive Committee that provides management oversight to staff and professional advisors on a monthly basis.
Funding and Financial Information
The Trust is funded by annual member contributions determined by the trust's actuary and underwriting consultant, in amounts necessary to pay expected losses, administrative expenses, and a recommended risk margin. The Trust's financial statements are prepared in conformity with generally accepted accounting principles using a full accrual basis of accounting.
The overall financial condition of the Delaware Valley Workers' Compensation Trust continues to meet or exceed original expectations. DVWCT is well positioned for continuing to meet its two long term goals of: 1) maintaining an insurance program managed by municipal officials, offering meaningful coverage designed to prudently protect municipalities from loss, and; 2) maintaining a financially secure product which is consistently priced year after year.
Excess funds are returned to members through four methods or programs: dividends, multi-trust discounts, rate stabilization fund (RSF) credits, and safety grants. The DVWCT has been returning dividends annually for more than 15 years. Dividends are made possible by a better-than-expected loss ratio, low operating expenses, conservative funding, and a good return on investments. The Trust has returned nearly $12 million in dividends since 1995.
As of January 1, 2008 all three trusts began offering multi-trust discounts as a reward for participating in more than one trust. Should a DVWCT member decide to join the Delaware Valley Insurance Trust (DVIT) and/or the Delaware Valley Health Insurance Trust (DVHIT), the reduction in property / liability premium contributions would be 2% to 3%. The municipal participant would also receive a comparable reduction in premium contributions from DVWCT and / or DVHIT.
The Trust also offers contribution credits through a rate stabilization fund (RSF). Members have the option to use the credits allocated, to reduce annual premium contributions due, or to roll the balance forward to future years. In effect, the RSF allows each member the discretion of choosing the most opportune time to apply their own rate relief. If the RSF balance is rolled over to future years, the Trust will add interest, and, if approved by the Trustees, an additional year's allocation to the balance. DVWCT has allocated $6 million to the RSF since 2005.
The Trust offers a safety grant program, whereby members are reimbursed for the costs associated with approved safety related expenditures, such as personal protective equipment, worksite safety materials, training programs, etc. The Trust has set aside $800,000 for these grants in the past seven years.
Limits
The Trust offers statutory limits for workers' compensation. The indemnity limit for Employers Liability is $2,000,000 per occurrence.
Trust Professional Advisors and Support Organizations
Rating, Underwriting & Risk Consulting:
Insurance Buyers Council, Inc. Cockeysville, MD
Actuarial Services:
SG Risk, Lyndhurst, NJ
General Counsel:
Geoffrey L. Beauchamp, Esq., Willow Grove, PA
Investment Advisors:
Wachovia Securities, Hartford, CT
Banking:
Citizens Bank, Plymouth Meeting, PA
Independent Auditing:
Bee, Bergvall & Company, Warrington, PA
Defense Counsel:
Bodell Bove Grace & Van Horn, Philadelphia, PA
German Gallagher & Murtagh, Philadelphia, PA
Marshall, Dennehey, Warner, Coleman & Goggin, Philadelphia, PA
Post & Schell, Philadelphia, PA