PURMIT Board of Trustees Meeting – February 14, 2018

PURMIT Board of Trustees Meeting

February 14, 2018

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Greg Perkinson (SOU), Vivian Chen (OIT)

Others Present: Sheryl Sattler, Jon Weber and Ryan Britz (Berkley), Jessica Gettman, Ron Graybeal, Shelley Dalmau (BBNW, Craig Scukas (PWC), Jamie Kilcoyne and Taylor Marsden (K Financial) and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 9:00 a.m.

 

Roll Call

Roll call was taken. Mr. Roy welcomed Greg Perkinson as Trustee representing SOU.  Mr. Perkinson introduced himself and noted that he was the VP of Finance and Administration for SOU.

Review and Approval of Minutes

Meeting minutes from the August 18, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.  Mr. Hagemann noted that Mr. Catz’s name was misspelled on the September 21, 2017 meeting minutes.  Mr. Britz noted he would make the change.

Action:

A motion was made by Mr. Roy to approve all minutes with the change requested by Mr. Hagemann. The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

PURMIT Financial Auditors Report for Fiscal Year 2016-2017 – K Financial

Mr. Kilcoyne and Mr. Marsden presented their audited financial report. Mr. Kilcoyne commented that this is the third year that K Financial has performed the audit on behalf of PURMIT.  Mr. Kilcoyne discussed the auditors letter and noted that there were no significant findings as a result of their audit that management’s estimates for reserves are at appropriate levels.  Mr. Kilcoyne noted that the Management Discussion and Analysis document is a requirement for the audit process and it provides a high level overview of the program and K Financial’s results.  The auditors issued a clean opinion.  Mr. Kilcoyne noted that loss reserves decreased for prior years, as shown by the actuarial report, and K Financial noted that the reserves were fairly stated.  Mr. Kilcoyne then thanked the group for their confidence selecting K Financial to perform PURMIT’s financial audit.

Action:

No action taken at this time.

Financial Review as of October 31, 2017

Ms. Sattler from Berkley Risk presented the financial information as of October 31, 2017. Ms. Sattler discussed the financial results, noting PURMIT had $7.9M of member contributions, $2.1M of operating revenue and a net income of $825K, resulting in an overall surplus of $7.2M for the year.   Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $18.6M in assets and $11.377M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $20K of investment income.  Mr. Roy asked about the restitution payments being received by the Trust and whether those funds should be sent back to the Member or remain in the Trust.  Ms. Sattler commented that the Trust member has been reimbursed for their portion of the loss by the Trust and the restitution payments should remain with the Trust account.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the proforma document and its trajectory out to 2021. Ms. Sattler noted that the proforma document included the SAIF dividend for the group.  Ms. Sattler also commented that the proforma includes options to return 25% or 50% of the SAIF dividend to PURMIT members.  The group discussed the options for returning a portion of the SAIF dividend to the members.  Mr. Roy commented that additional information was needed regarding the Trusts financial position and goals before moving forward.  Mr. Hughes commented that the group needs to explore options that will assist the Trust with setting appropriate financial goals and ways in which the goals can be achieved, and finally what to do with the funds once the appropriate funding levels have been achieved.  Mr. Parker commented that there are several ways the funds can be utilized to benefit the members, depending on what the groups is looking to do.  Mr. Britz commented that PricewaterhouseCoopers, PURMIT’s actuary, has the ability to perform this function and provide guidance to PURMIT.  Mr. Roy requested that Mr. Britz work with Mr. Scukas to provide a proposal for consideration with the goal to develop an appropriate plan to guide the group in establishing their surplus targets.

Action:

No action taken at this time.

July 1, 2018 Renewal Process and Timeline

Mr. Britz presented to the Trustees the desired timeline for the upcoming renewal activities. Mr. Graybeal discussed the approach that the BBNW team will be taking for each of the Trust’s coverages, and desired options and outcomes resulting from their renewal activities.  Mr. Hughes commented that he has some concerns with TBI exposure and what approach PURMIT’s liability carrier may be taking as a result of this exposure.  Mr. Graybeal noted that they are not expecting any changes from the current carrier and that his team would confirm same during the renewal process.  Mr. Roy commented that it would be a good decision to meet with the carrier since they have been a partner for several years, as this would further solidify the relationship and have a clear understanding as to their intent going forward.  Mr. Graybeal commented that he would discuss this with the carrier and work towards finding a time to have a meeting.

Action:

No action taken at this time.

Brown & Brown NW – Workers’ Compensation Self Insurance Presentation

Ms. Dalmau discussed with the Trustees the current workers’ compensation insurance program in place for the Trust as well as options to consider when exploring a self-insured option. The Trustees discussed the pros and cons of both options and requested Brown & Brown NW to continue the relationship with SAIF going forward and to keep the self-insurance mechanism in mind as an option for future consideration.

Action:

No action taken at this time.

Update form Claims Desk – Introduction of Jon Weber

Mr. Britz commented that Berkley made some internal changes to the claims team and that Jon Weber will now be the claims contact for PURMIT. Mr. Weber introduced himself and provided background information to the group about his career experiences and that he was looking forward to getting to know the group.

Action:

No action taken at this time.

 

The Board adjourned the regular meeting and went into Executive Session at 11:32 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 12:49 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 12:51 p.m.

There were no final decisions or actions related to Executive Session discussions.

Adjourn

The Board adjourned the meeting at 12:53p.m.