The Huntington School District has maintained a Workers’ Compensation reserve fund since June 30, 2004. The fund is used to pay claims related to medical expenses and self-insurance administrative costs. It cannot be used to pay for Workers’ Compensation insurance premiums.
The balance of monies in Huntington’s Workers’ Compensation reserve fund currently totals $2,859,140. The reserve, which is monitored by the assistant superintendent for finance and management services, has been funded through excess fund balance realized over the course of several years. The fund’s existence helps buffer taxpayers by setting aside existing budget dollars rather than raising taxes to cover the cost of Workers’ Compensation related expenses.
The reserve is used to pay for actual Workers’ Compensation claims filed during the period the district was self-insured. “In July 2015, the district engaged an actuary to re-evaluate the self-insured claims filed during the time period when the district was self-insured” states a reserve fund report given to trustees. “The balance in this reserve at that time will be used for the final settlement, if a payment to NYSIR (New York Schools Insurance Reciprocal) is required. Otherwise, all remaining funds will be returned to the general fund.”
The report given to trustees indicates “the current level of funding (in the reserve) is sufficient to pay 100 percent of the previously determined actuarial value of all outstanding self-insured claims.”