1. SCORE Funding Calculations
For The liability and workers’ compensation programs
FY 2016/17
SCORE Board Meeting Presentation, April 1, 2016

2. Purpose Explain how the Liability and Workers’ Compensation (WC)
funding is calculated per the
Master Plan Documents
for each Program

3. Outline Exposure Base – “Projected Payroll”
GL – funding and Ex Mod calculations
WC – funding and Ex Mod calculations

4. Exposure Base For BOTH Programs = Projected Payroll
SCORE has traditionally used the DE9 payroll
for the most recent calendar year and
added an inflation factor of 3%.
For FY 2016/17 payroll we use
2015 Calendar Year Payroll adjusted
3% for inflation (CYPa).
See Column B in Both Funding Spreadsheets A B
Formula/Allocation
CY 2015 x Inflation Factor (CYPa)
MEMBER ENTITY
CY 2015 with Inflation Factor (CYPa)
Rate/Amount
1.03
Biggs
$391,965
Colfax
$458,398
Dunsmuir
$501,535
Etna
$382,228
Fort Jones
$316,012
Isleton
$216,217

5. Liability Funding- Banking Layer ($0 to $25,000)
Banking Layer – we multiply the Projected
Payroll/$100 times the Rate per $100 of payroll
at the 70% Confidence Level (CL) as
calculated by the actuary ($1.44 for FY 16/17).
See Column C in the Funding Spreadsheet –
(CYPa/$100) x Rate A B C
Formula/Allocation
CYP 2015 x Inflation Factor (CYPa)
(CYPa/$100) x Rate
MEMBER ENTITY
CY 2015 with Inflation Factor (CYPa)
BANKING LAYER at 70% CL
Rate/Amount
1.03
$1.44
Biggs
$391,965
$5,644
Colfax
$458,398
$6,601

6. Liability Funding – Shared Layer ($25,001 to $500,000)
Shared Layer – we multiply the Projected
Payroll/$100 times the Rate per $100 of payroll
at the 70% Confidence Level (CL) as
calculated by the actuary ($2.18 for FY 16/17)
Times the Member’s Experience Modification
Factor (Ex Mod) to obtain the
Unadjusted Shared Layer Funding.
See columns D, E & F A D E F
Formula/Allocation
(CYPa/$100) x Rate
Member RLR x Member Cred +
(1-Member Cred)
Shared Layer x
Ex Mod
MEMBER ENTITY
SHARED LAYER at 70% CL
$25,001 to $500,000
EX MOD
UNADJUSTED SHARED LAYER
Rate/Amount
$2.18
Calculation
Biggs
$8,545
0.93
$7,989
Colfax
$9,993
0.96
$9,570
Dunsmuir
$10,933
1.47
$16,037

7. Liability Funding – Ex Mod Calculation Refer to Liability Experience Modification Calculation Spreadsheet
Divide member losses for last five complete years,
capped at $50,000, by the corresponding member payroll to
obtain the Member’s Loss Rate (LR). Column P
Divide the Member Loss Rate by the total SCORE Loss Rate ($1.82)
to obtain the Relative Loss Rate (RLR) for member. Column Q
Multiply the Relative Loss Rate (Q)
by a Credibility Factor - See next page P Q
(Total Member Losses/ Total Member Payroll)
X 100
Member LR/
Total Pool LR
Member Loss Rate
Per $100 Payroll (LR)
Relative Loss Rate (RLR)
MEMBER ENTITY
Biggs
$0.56
0.31
Colfax
$1.10
0.61
Grand Total SCORE
$1.82
$1.00

8. Relative Loss Rate (RLR) Credibility Factor (Cred)
Liability Funding – Credibility Factor Refer to Liability Experience Modification Calculation Spreadsheet
Multiply the Relative Loss Rate (Q) by a
Credibility Factor (S)
Credibility Factor = Member Payroll/
(Member Payroll + Largest member Payroll)
Susanville at $3,784,518 payroll is largest
Ex Mod = Member Relative Loss Rate x Member Credibility Factor + (One - Member Credibility Factor) Q R S T
Member LR/Total Pool LR
CY 2015 x 1.03 Inflation Factor
CYPa/(CYPa +
Largest Member Payroll)
Member RLR x Member Cred +
(1- Member Cred)
MEMBER ENTITY
Relative Loss Rate (RLR)
CY 2015 with Inflation Factor (CYPa)
Credibility Factor (Cred)
Ex Mod
Biggs
0.31
$391,965
9.39%
0.93
Colfax
0.61
$458,398
10.80%
0.96
Susanville
0.57
$3,784,518
50.0%
0.78
Grand Total
$1.82
$20,569,511
1.00

9. Liability Funding – Adjusted Shared Layer
Shared Layer x Ex Mod = Unadjusted Shared Layer. Column F
Total unadjusted funding does not balance with
original funding total ($427,475 v. $448,415).
To balance the amount the Unadjusted Shared Layer
is divided by a Weighted Ex Mod
Weighted Ex Mod = unadjusted shared layer/shared layer =
Adjusted Shared Layer = SL x Ex Mod/Total Weighted Ex Mod. Column G
Adjusted Shared Layer balances with the original funding amount per actuary A F G
Formula/Allocation
Shared Layer x Ex Mod
SL x EX Mod/ (Tot. Weighted Ex Mod)
MEMBER ENTITY
UNADJUSTED SHARED LAYER
ADJUSTED SHARED LAYER*
Rate/Amount
Calculation
Biggs
$7,989
$8,380
Colfax
$9,570
$10,039
Dunsmuir
$16,037
$16,823
Grand Total
$427,475
$448,415

10. Liability Funding – Excess Layer ($500,001 to $40 million) CJPRMA Premium
The cost of excess coverage shall be charged to each
“Participating Member” in the same proportion as
the projected payroll is to the total payroll.
Member share of total payroll (% Payroll) in Column R.
Total CJPRMA Premium = $127,592
Charged to members based on % Payroll (H)
CJPRMA Refund = $37,310
Credited to members based on % Payroll (I),
per Board direction H I R
Formula/Allocation
Premium x (Member CYPa/Total Pool CYPa)
Refund x (Member CYPa/Total Pool CYPa)
(Member CYPa/Total
Pool CYPa)
MEMBER ENTITY
EXCESS LAYER $500k TO $40M
CJPRMA PREMIUM
CJPRMA REFUND
% Payroll
Rate/Amount
$127,592
$37,310
Biggs
$2,431
$711
1.91%
Colfax
$2,843
$831
2.23%

11. CSAC/CPIEA Pollution Coverage
Charged to each “Participating Member” in the same
proportion as the projected payroll is to the total payroll.
Not all members participate
Total CSAC/CPIE Premium = $6,614
Total participating member payroll = $16,699,057
Premium converted to rate per $100 of payroll
($6,614/$16,699,057) x 100 = $
Charged to members based on Payroll x Rate (J) J
Formula/Allocation
(CYPa/100) x Rate
MEMBER ENTITY
CSAC/CPIEA Pollution Coverage
Rate/Amount $
Biggs
$155
Colfax
$182

12. Liability Funding – Administrative Expenses
Multiply fifty (50) percent of the Admin Expenses
by Member projected payroll divided by
the total projected payroll of all Members, Column L;
plus
A share of the remaining “Administrative Expenses”
that is equal among all the members. Column K
18 total members
Total Admin is shown in Column M K L M R
Formula/Allocation
(Total Admin/2)/ Number of Members
(Total Admin/2)/ (Member CYPa/Total Pool CYPa)
MEMBER ENTITY
50% ADMIN FIXED EXPENSE
50% ADMIN
% PAYROLL
Proposed
FY 16-17
Admin Total
% Payroll
Rate/Amount
$240,000
$480,000
Biggs
$13,333
$4,573
$17,907
1.91%
Colfax
$5,348
$18,682
2.23%

13. Liability Funding – Total & Comparison
Banking, Shared, Excess, Pollution
and Admin Expenses are totaled
in Column N
Comparison to FY funding
In Columns (O), (P), and (Q) N O P Q
MEMBER ENTITY
Proposed
FY TOTAL FINAL DEPOSIT
FY TOTAL DEPOSIT
$ Change Overall
% Change Overall
Rate/Amount
Biggs
$33,807
$33,516
$291
0.87%
Colfax
$37,515
$36,036
$1,479
4.11%
Dunsmuir
$45,630
$51,532
($5,902)
-11.45%

14. WC Funding – Mini-Cities PoolA T U
MEMBER ENTITY
% Payroll
% Total MC Payroll
Rate/Amount
Dunsmuir
2.5%
Isleton (does not participate)
N/A
Live Oak
6.5%
Mt. Shasta
8.9%
Shasta Lake
17.4%
Susanville
18.6%
Weed
7.8%
Yreka
14.3%
Subtotal Members
75.9%
Biggs
1.9%
8.0%
Colfax
2.3%
9.4%
Etna
Fort Jones
1.6%
Loomis
3.7%
15.5%
Loyalton
0.7%
2.9%
Montague
6.8%
Portola
15.2%
Rio Dell
4.9%
20.6%
Tulelake
1.8%
7.4%
Subtotal Mini Cities
24.1%
100.0%
For purposes of Funding, such “Mini-Cities” pool shall be
treated as if it were a single “Participating Member”.
“Deposit Premiums” for the “Mini-Cities” pool shall be
distributed to its members in the proportion the member’s payroll is to
the total payroll of all the members of the “Mini-Cities” pool.
See Column (T) for Member % of Total Payroll
See Column (U) For Mini-Cities Members % of Mini-Cities Pool Total Payroll

15. WC Funding- Banking Layer ($0 to $25,000)
Banking Layer – we multiply the Projected
Payroll/$100 times the Rate per $100 of payroll
at the 70% Confidence Level (CL) as
calculated by the actuary ($1.56 for FY 16/17).
See Column C in the Funding Spreadsheet –
(CYPa/$100) x Rate A B C
Formula/Allocation
CY 2015 with 3% Inflation Factor (CYPa)
(CYPa/$100) x Rate
MEMBER ENTITY
CY 2015 with Inflation Factor (CYPa)
BANKING LAYER (BL) $0 to $25K
Rate/Amount
1.03
$1.56
Dunsmuir
$501,483
$7,823
Subtotal Members
$15,457,669
$241,140
Biggs
$391,965
$6,115
Subtotal Mini Cities
$4,895,573
$76,371
Grand Total
$20,353,242
$317,511

16. WC Funding – Shared Layer ($25,001 to $250,000)
Shared Layer – we multiply the Projected
Payroll/$100 times the Rate per $100 of payroll
at the 70% Confidence Level (CL) as
calculated by the actuary ($3.534 for FY 16/17)
Times the Member’s Experience Modification
Factor (Ex Mod) to obtain the
Unadjusted Shared Layer Funding.
See columns D, E & F
(B) x (D) x (E) = (F) A B D E F
Formula/Allocation
CY 2015 with 3% Inflation Factor (CYPa)
(CYPa/$100) x Rate
Member RLR x Member Cred + (1-member Cred)
Shared Layer x Ex Mod
MEMBER ENTITY
CY 2015 with Inflation Factor (CYPa)
SHARED LAYER (SL) $25K to $250K
EX MOD
UNADJUSTED SHARED LAYER
Rate/Amount
1.03
$3.534
Calc
Yreka
$2,912,180
$102,916
0.98
$100,549
Subtotal Members
$15,457,669
$546,274
0.94
$513,053
Biggs
$391,965
$13,852
1.22
$16,847
Subtotal Mini Cities
$4,895,573
$173,010
$210,415
Grand Total
$20,353,242
$719,284
1.00
$723,468

17. WC Funding – Ex Mod Calculation Refer to WC Experience Modification Calculation Spreadsheet
Divide member losses for last four complete years, less salary continuation, capped at $50,000, by the corresponding member payroll to obtain the Member’s Loss Rate. (Column N)
Divide the Member Loss Rate by the total SCORE Loss Rate = Relative Loss Rate for member (Column O)
Multiply the Relative Loss Rate (O) by a
Credibility Factor – See next page N O
FORMULA
Total Member losses/Total Member Payroll
Member LR/Total Pool LR
MEMBER ENTITY
Loss Rate Per $100 (LR)
Relative Loss Rate Per $100 (RLR)
Dunsmuir
$2.36
$1.05
Yreka
$2.12
$0.94
Subtotal Members
$1.96
$0.87
Biggs
$0.04
$0.02
Colfax
$0.07
$0.03
Subtotal Mini Cities
$3.23
$1.43
Grand Total
$2.26
$1.00

18. Member RLR x Member Cred + (1-member Cred) Credibility Factor (Cred)
WC Funding – Credibility Factor Refer to WC Experience Modification Calculation Spreadsheet
Multiply the Relative Loss Rate (O)
by a Credibility Factor (Q)
Credibility Factor = Member Payroll/
(Member Payroll + Largest member Payroll)
Mini Cities at $4,895,572 payroll is largest
Ex Mod = Member Relative Loss Rate x
Member Credibility Factor +
(One - Member Credibility Factor)
See Column R O P Q R
FORMULA
Member LR/Total Pool LR
CY 2015 Payroll x
3% Inflation Factor
CYPa/(CYPa+largest member payroll)
Member RLR x Member Cred + (1-member Cred)
MEMBER ENTITY
Relative Loss Rate Per $100 (RLR)
CY 2015 with Inflation Factor (CYPa)
Credibility Factor (Cred)
Ex MOD
1.03
Dunsmuir
$1.05
$501,483
0.09
1.00
Yreka
$0.94
$2,912,180
0.37
0.98
Subtotal Members
$0.87
$15,457,669
0.76
0.90
Biggs
$0.02
$391,965
0.07
1.22
Colfax
$0.03
$458,398
Subtotal Mini Cities
$1.43
$4,895,572
0.50
Grand Total
$1.00
$20,353,241
0.81

19. WC Funding – Adjusted Shared Layer
Shared Layer x Ex Mod = Unadjusted Shared Layer. Column F
Total unadjusted funding does not balance with
original funding total ($723,468 v. $719,284).
To balance the amount the Unadjusted Shared Layer
is divided by a Weighted Ex Mod
Weighted Ex Mod = unadjusted shared layer/shared layer =
Adjusted Shared Layer = SL x Ex Mod/Total Weighted Ex Mod. Column G
Adjusted Shared Layer balances with the original funding amount per actuary A F G
Formula/Allocation
Shared Layer x Ex Mod
SL x EX Mod/ Total Weighted Ex Mod
MEMBER ENTITY
UNADJUSTED SHARED LAYER
ADJUSTED SHARED LAYER*
Rate/Amount
Calculation
Dunsmuir
$17,798
$17,695
Subtotal Members
$513,053
$510,086
Biggs
$16,847
$16,749
Subtotal Mini Cities
$210,415
$209,198
Grand Total
$723,468
$719,284

20. WC Funding – Excess Layer ($250,000 to Statutory Limit) LAWCX Premium
The cost of excess coverage shall be charged to each
“Participating Member” in the same proportion as
the projected payroll is to the total payroll.
Total LAWCX Premium = $246,511 (Column H)
Charged to members based on % Payroll
LAWCX Assessment = $15,902, estimated (Column J)
per Board direction A H J
Formula/Allocation
Premium x (Member CYPa/Total Pool CYPa)
Assessment x (Member CYPa/Total Pool CYPa)
MEMBER ENTITY
EXCESS LAYER
$250K TO STATUTORY LIMIT
LAWCX PREMIUM
LAWCX ASSESMENT
Rate/Amount
$246,511
$15,902
Dunsmuir
$6,074
$456
Yreka
$35,271
$2,464
Subtotal Members
$187,218
$14,076
Biggs
$4,747
$313
Tulelake
$4,358
$254
Subtotal Mini Cities
$59,293
$1,826
Grand Total

21. WC Funding – Administrative Expenses
Multiply fifty (50) percent of the Admin Expenses
by Member projected payroll divided by
the total projected payroll of all Members, Column L;
plus
A share of the remaining “Administrative Expenses”
that is equal among all the members. Column K
8 total members
Total Admin is shown in Column M A K L N
Formula/Allocation
(Total Admin/2)/ Number of Members
(Total Admin/2)/ (Member CYPa/Total Pool CYPa)
 (K) + (L)
MEMBER ENTITY
50% ADMIN
FIXED EXPENSE
% PAYROLL
Proposed Admin Total FY 16-17
Rate/Amount
$185,000
$370,000
Dunsmuir
$23,125
$4,558
$27,683
Yreka
$26,470
$49,595
Subtotal Members
$161,875
$140,502
$302,377
Biggs
$2,313
$3,563
$5,875
Colfax
$4,167
$6,479
Subtotal Mini Cities
$44,498
$67,623
Grand Total

22. WC Funding – Total & Comparison
Banking, Shared, Excess, and
Admin Expenses are totaled in Column (P)
Comparison to FY funding
In Columns (Q), (R), and (S) A P Q R S
MEMBER ENTITY
Proposed
FY 16-17
TOTAL DEPOSIT
Prior Year
FY DEPOSIT
$ Change Overall
% Change Overall
Rate/Amount
Dunsmuir
$59,731
$62,262
($2,531)
-4.1%
Yreka
$232,728
$255,617
($22,889)
-9.0%
Subtotal Members
$1,254,896
$1,292,610
($37,714)
-2.9%
Biggs
$33,800
$32,187
$1,613
5.0%
Tulelake
$31,185
$26,093
$5,092
19.5%
Subtotal Mini Cities
$414,312
$379,785
$34,527
9.1%
Grand Total
$1,669,207
$1,672,395
($3,188)
-0.2%

23. Comments & Questions?