§ 128.311. Dividends.

(a)

Each Participant shall be required to choose a Retained Earnings Threshold Percentage for both the Workers' Compensation Component and the Liability Component for the purposes of determining the Participant's eligibility for Dividends. Each Participant shall select a Retained Earnings Threshold Percentage amount between a minimum of ten percent and a maximum of 100 percent.

(b)

Following the selection of the Participant's Retained Earnings Threshold Percentage, the amount of the Retained Earnings Threshold shall be calculated by multiplying the Retained Earnings Threshold Percentage by the average of the amount of funds that are actually paid into the Self-Insurance Program by the Participant for the previous three fiscal years, excluding the Participant's contribution to the Self-Insurance Operating Reserve for that Participant.

(c)

Participants must make an election of a Retained Earnings Threshold Amount Percentage by September 30, 2018.

(d)

The amount of the Retained Earnings Threshold shall be calculated for each Participant once every three years following the election made as of September 30, 2018. The Participant shall have the opportunity to change its Retained Earnings Threshold Percentage every three years when its Retained Earnings Threshold amount is recalculated. If a Participant does not choose a Retained Earnings Threshold Percentage for either the Workers' Compensation Component or the Liability Component, then the Participant's Retained Earnings Threshold Percentage default for the component or components for which no Retained Earnings Threshold Percentage is chosen shall be set at ten percent.

(e)

If, following the Participant's Retained Earnings adjustment at the close of a fiscal year, a Participant's Retained Earnings account balance exceeds that Participant's Retained Earnings Threshold, the Participant shall receive a Dividend in the amount that its combined Retained Earnings account balance for both the Workers' Compensation Component and the Liability Component exceeds the combined Participant's Retained Earnings Threshold for both the Workers' Compensation Component and the Liability Component.

(f)

If it is determined that a Dividend is payable to a Participant, the Risk Manager shall notify the Participant of the amount of the Dividend. Dividends shall be paid in accordance with one of the following methods at the Participant's election:

(1)

A lump sum payment payable to the Participant following the finalization of the City's consolidated annual financial report for the subject fiscal year; or

(2)

In the form of a credit to the Participant's next Annual Funding Amount.

(Ord. 2018-380-E , § 2)