1. April 14, 2015 GEMC Workers’ Compensation Trustee Meeting Georgia Electric Membership Corporation Workers’ Compensation Fund

2. Georgia EMC Workers’ Compensation Fund Trustee Meeting Conference Call Randy Crenshaw ­Call Meeting to Order Tonya Washington ­Conference Call Reminders ­Roll Call ­Determination of Quorum Randy Crenshaw ­Motion on April 15, 2014 Trustee Meeting Minutes »All in Favor

3. Executive Committee Report The Executive Committee met via conference call on September 11th, October 27th and April 7th to discuss the following items Commissioner of Insurance Compliance Audit Report 2015 Preliminary Budget Nominating Committee 2014 Financial Audit report 2014 Actuarial Report Financial Update The Executive Committee gave email approval of 2014 Dividend Distribution The Executive Committee consists of: - Gary Miller- Chip Jakins - Randy Crenshaw- Tony Tucker - Wayne Livingston - Tony Watkins

4. State Compliance Exam Final Opinion Summary Findings: 1.GEMC WCF reinsurance agreements lack automatic renewal language required by Georgia Insurance Regulation 120-2-34-.(16)(5)(b) (Prior Exam Finding) - Item has been addressed and should be rectified in future agreements 2.GEMC WCF specific excess attachment point in 2007 was greater than the amount allowed by Georgia Insurance Regulation 120-2-34-.16(4)(c), (no greater than $350,000 without prior approval from the Commissioner 30-days prior to implementation.) (Prior Exam Finding) - Corrected from previous audit when notified in May 2007 3.GEMC WCF did not have in a place a conflict of interest policy requiring annual disclosure of potential conflicts by its Board of Trustees and Officers. (Prior Exam Finding) - In process 4.GEMC WCF Services Agreement with GEMC has not been approved by the Department in accordance with Georgia Insurance Regulation 120-2-34-.18. (Prior Exam Finding) - Complete

5. 5.Third party claims administrator (AmPro) was replaced by Georgia Administrative Services, Inc. (GAS) in 2010. GAS had not submitted Form GSF-6 (Application to Serve as Administrator of Group Self-Insurance Fund) in accordance with Georgia Insurance Regulation 120-2-34-.10. (Prior Exam Finding) - GAS has rectified 6.GEMC WCF did not have a written agreement with its reinsurance intermediary (Affinity Service Group, Inc.) in accordance with O.C.G.A. § 33-49-4. - GEMC WCF and Affinity Services have an updated written agreement Any further discussion? -Motion to accept -Second - All in favor Summary Findings Continued:

6. Description Budget 2014 Projected 2015 Proposed % Change Insurance placement1,096,5241,115,2021,198,8509 % TPA Services141,450138,000141,450- Subsequent Injury Trust Fund290,000259,684265,000( 9 ) % State Board of WC93,00086,33095,0002 % Consulting Services ( including BNY Mellon fee increase ) 89,00099,500112,05026 % Personnel & A&G617,246632,490691,06512 % Totals$2,327,220$2,331,206$2,503,4158 % 2015 Preliminary Budget

7. 2014 Dividends and Remaining Surplus

8. 2014 Dividends/Net Premium Totals Premiums Total Dividends Returned Net Premium Percent Reduction 2014 6,912,322- 00% 2013 7,219,468 - 00% 2012 7,099,315 1,704,5405,394,775 24% 2011 6,451,109 1,400,000 5,051,109 22% 2010 6,169,447 1,350,000 4,819,447 22% 2009 6,313,430 500,001 5,813,429 8% 2008 6,370,328 1,850,005 4,520,323 29% 2007 5,647,078 1,285,846 4,361,232 23% 2006 4,965,595 1,745,186 3,220,409 35% 2005 5,158,207 1,461,378 3,696,829 28% 2004 4,887,895 1,261,053 3,626,842 26% 82-03 58,553,406 27,009,326 31,434,080 46% Totals125,747,600 39,567,335 86,180,265 31%

9. 2015 Preliminary Budget and 2014 Dividend Distribution Approval of the 2015 Preliminary Budget comes to you in the form of a motion from the executive committee Any further discussion? -Second to approve -All in favor This return of $2,900,000 in Dividends comes in the form of a motion from the Executive Committee Any further discussion? - Second to approve - All in favor

10. Nominating Committee Report The Nominating Committee met via email to discuss the upcoming slate of officers for the Georgia EMC Workers’ Compensation Fund The Nominating Committee consists of the following members: – Chip Jakins – Jackson EMC – Chairman – Romeo Reyes – Satilla EMC – Brad Thomas – Snapping Shoals EMC

11. Nominating Committee Report The Nominating Committee nominates the following trustees as officers: – Gary Miller - President – Randy Crenshaw – Vice President – Tony Tucker – Secretary/Treasurer These recommendations come to you in the form of a motion from the Nominating Committee Any further discussion? - Second to approve - All in favor

12. Investment Committee Report The Investment committee met via conference call on June 18, 2014, via email in December and again by conference call March 24, 2015 to discuss the following items BNY Mellon fee increase Clarify cash reserve requirement Discuss Equity Investment Allocation Update purchases and sales The Investment Committee consists of the following members: – Matt Brinson – Denice Swan – Wade Hall

13. Investment Committee Report Each Trustee was furnished with a copy of the purchases and sales by BNY Mellon from the last Trustee Meeting through 12/31/2014 with the meeting notice and mail out. Approval of the purchases and sales come to you in the form of a motion from the Investment Committee Any further discussion? -Second to approve -All in favor

14. Report of Independent Accountants Board Communication Each Trustee was furnished with a copy of the 2014 Report of the Independent Accountants with the meeting notice and mail out No new accounting policies adopted No change in the application of existing policies No transactions with a lack of authoritative guidance All significant transactions have been recognized Accounting estimates used are reasonable No difficulties with management in performing and completing the audit All uncorrected misstatements were immaterial both individually and in aggregate to the No disagreements with management in performing the audit

15. Report of Independent Accountants Board Communication Internal Controls The size of the Fund’s administrative staff precludes certain internal controls that would be preferred if the organization were large enough to provide an optimum segregation of duties Opinion Financial Statements present fairly, in all material respects, the admitted assets, the liabilities and surplus of the Fund as of December 31, 2014 and the income and surplus on the basis of statutory accounting as mandated by the Office of the Commissioner of Insurance Approval of the report of the Independent Accountants Report comes to you in the form of a motion from the Executive Committee Any further discussion? -Second to approve -All in favor If you have any questions or comments regarding the report please contact either Jerry Wolfe with McNair, McLemore Middlebrooks or Mary Wellman

16. 2014 Actuarial Report Each Trustee was furnished with a copy of the 2014 Actuarial Report with the meeting notice and mail out. The GEMC WCF’s Balance Sheet Meets the requirements of the Insurance Laws of Georgia Consistent with reserves computed in accordance with Standards of Practice issued by the Actuarial Standards Board Make reasonable provision for unpaid loss and loss adjustment expense Make a reasonable provision for the SITF obligations of the Fund The major risk factor is the high specific retention relative to surplus. The current retention of $500,000 is 19% of surplus.

17. 2014 Actuarial Report Approval of the 2014 Actuarial Report comes to you in the form of a motion from the Executive Committee Any further discussion? -Second to accept -All in favor If you have any questions or comments regarding the report please contact either Lisa Dennison with By the Numbers Actuarial Consulting Inc. or Mary Wellman

18. Financial Highlights December 2014 December 31, 2014 December 31, 2013 Change Total Assets13,199,45412,653,907545,547 Reserve7,279,7168,350,995(1,071,279) Liabilities3,221,1701,574,4281,646,742 Surplus2,698,5692,728,483(29,914) Open Claims16615511

19. 2014 Claims Paid Summary

20. 2014 Claims Summary

21. Additional Items Medical case management position Participation in payroll audits Experience modifier letter Rate structure May 17th training seminar Potential Board Restructure – Streamline compliance – Improve responsiveness – Reduce paperwork

22. Georgia Electric Membership Corporation Workers’ Compensation Fund

23. Georgia Electric Membership Corporation Workers’ Compensation Fund GEMC WCF Coordinator’s Conference Agenda

24. April 14, 2015 GEMC Workers’ Compensation Trustee Meeting Georgia Electric Membership Corporation Workers’ Compensation Fund Any further business to discuss? Motion to adjourn Second All in favor