PIRMA. Pennsylvania Intergovernmental Risk Management Association ANNUAL REPORT

Transcription

1 PIRMA Pennsylvania Intergovernmental Risk Management Association ANNUAL REPORT

2 About PIRMA Pennsylvania Intergovernmental Risk Management Association (PIRMA) is a group self-insurance pool that offers comprehensive liability and property coverages to Pennsylvania public entities. The program s philosophy differs from that of a traditional insurance program in that PIRMA is owned by its membership and serves only the interests of its members. PIRMA has grown steadily since its formation in 1987 and is over 650 members strong, making it the largest public entity pool in Pennsylvania. Each PIRMA member is provided with $10,000,000 liability coverage limits. Broad employment practices, pollution, and punitive damage coverages protect the Pool s members in areas where insurance carriers leave significant gaps. In addition, PIRMA Members receive specialized Loss Control and Claim services. The Loss Control Division works with the Members to decrease losses through the identification and analysis of risk and the implementation of loss control measures. PIRMA provides personalized Loss Control services, resources, training, and education to the Member s public officials and employees. The Claims Division provides an outstanding hands-on approach utilizing extremely experienced staff to assist the Members. PIRMA s claim staff is committed to excellent customer service while providing fair claim settlements. As a result of PIRMA and its value added services, Pennsylvania s public entities and communities are safer for everyone. PIRMA s Commitment PIRMA was formed as a local government risk-sharing pool to provide risk management services and risk sharing facilities to its Members and to provide them with a comprehensive liability and property coverage program at a competitive cost. PIRMA is owned by its membership. The program s philosophy differs from that of a traditional insurance program in that the Pool is owned by and serves only the interests of its Members. Since its formation in 1987, PIRMA has met these goals and is committed to their continuation. 2

3 Comprehensive Liability & Property Coverages Creating Safer Communities in Pennsylvania Pennsylvania s Largest Municipal Pool PIRMA Pennsylvania Intergovernmental Risk Management Association Table of Contents About PIRMA... 2 PIRMA s Commitment... 2 Board of Directors... 4 A Message from the Chair... 5 A Message from the General Counsel... 6 Administrator s Report... 7 PIRMA Membership... 9 Financial Stability Financial Overview Revenue, Expenses, and Changes in Net Assets Service Providers Past Board Members Marketing Report

4 Board of Directors Top Row (L-R) Bottom Row Mr. Daniel Anderson Indiana Township Mr. Nicholas Hiriak Chair Upper Merion Township Ms. Kimberly Moretti East Pikeland Township Ms. Betty Ann Moyer Danville Borough Ms. Susan Carter-Roboski Port Allegany Borough Ms. Stephanie Mason Vice Chair Doylestown Township Mr. Robert Softcheck North Fayette County Municipal Authority 4

5 A Message From The Chair Nick Hiriak Chair As Chair of the PIRMA Board of Directors in 2014, I am proud to see the continued efforts by our membership and service providers to strengthen our program. Focus will stay on the core aspects of a successful risk management pool...underwriting discipline, risk management/loss control procedures, and claim defense. Our goal remains to create safer communities in Pennsylvania through claim prevention. Our membership count is stable and we will continue to give careful consideration to all prospects and welcome those new members that have met the standard. We are always looking for ways to enhance coverage and service for our members. Throughout the Pool s history, our members have realized the importance of complying with recommendations made by our loss control specialists. This effort of reducing and/or preventing claims contributes to the success of our program. PIRMA s loss control team is busy visiting all members, especially new members. We continually update our website ( to better serve the needs of our members. Our ever-expanding Online Resource elibrary (see page 17) is a great source of training and information for the membership. These resources help keep our program above the rest in customer service and assistance. I would also like to congratulate the members that earned the prestigious Loss Control and Safety Awards. Their commitment to safety training and risk management is commendable. It has been my pleasure to serve on the Board of PIRMA and I look forward to staying on in that capacity and witnessing the focus and strength of our program. 5

6 A Message from the General Counsel Stephen V. Siana General Counsel PIRMA continues to be at the forefront of municipal risk management and liability protection in Pennsylvania. Guided by the interests of our many, diverse member municipalities and agencies, PIRMA has taken a proactive role in vigorously defending legal claims against our municipalities and their officials. Our dynamic municipal representation has helped to shape the law in Pennsylvania and secured positive results for the members in both matters of first impression as well as those claims routinely faced by our municipalities. With claims ranging from statutory land use appeals, negligence claims to multi-million dollar civil rights lawsuits, PIRMA serves its member municipalities by providing a robust shield against the aggressive claims brought by calculating plaintiffs. PIRMA has undertaken efforts to ensure that municipal interests were appropriately addressed when, at the direction of the Board, PIRMA has filed amicus briefs on behalf of public entities and public officials on issues of state-wide municipal importance: such as in the Zauflik v. Pennsbury School District and Commonwealth v. Moran matters. In Zauflik, PIRMA worked in conjunction with Delaware Valley Insurance Trust and other parties to file an amicus brief with the Pennsylvania Supreme Court to defeat the latest significant challenge to the $500,000 statutory cap on municipal liability under the Pennsylvania Subdivision Tort Claims Act. This effort contributed to the Supreme Court rejecting the challenge and preserving the cap. Additionally, in the Moran matter, PIRMA stepped in when overly broad language from a Superior Court decision threatened to vastly expand the potential civil and criminal liability of municipal officials. If the Superior Court s Moran decision stood, it would have imbued an imprimatur of bribery into the vast majority of actions taken by our member municipalities. Fortunately, through argument before the Pennsylvania Supreme Court, PIRMA was successful in securing clarification to reign in the lower court s expansive interpretation. The coming year will undoubtedly present many new challenges and opportunities for PIRMA and our member municipalities. Legislation is currently proposed to expand the statutory Tort Claims Act cap. Claimants continue to press novel ways to evade municipal immunities. Our municipal police are faced with heightened plaintiff scrutiny given police incidents at the national level. PIRMA s proactive approach sets it apart in being able to meet these issues head on. PIRMA and its consultants continue to work with and through other local, county and statewide public entity associations to provide educational training programs to assist public officials and municipal employees in identifying, avoiding and mitigating the risks associated with day to day operations. PIRMA s legal defense team and claims service providers work diligently with the membership to ensure that they are provided the best, most comprehensive service. Through division of responsibility, a system of checks and balances, coordinated communication, and years of experience, PIRMA members are provided with the highest levels of support both to weather the storm of a lawsuit and to plan for the rainy day with risk management training and evaluation. PIRMA s service providers are happy to provide assistance, risk management and loss control training. I encourage you to take advantage of the significant resources that PIRMA has to offer. 6

7 Administrator s Report York Risk Pooling Services, Inc. Administrative Team York Risk Pooling is honored to have worked with the PIRMA Board of Directors for the past 27 years to best serve the needs of the membership. Throughout those 27 years, PIRMA has continued to provide its members with coverage tailored for Pennsylvania municipalities and unparalleled member services. Through the use of evolving technology, PIRMA Members have access to a number of state-of-the-art online training programs, streamed videos, human resources webinars, ealerts, and model policies and procedures through the PIRMA Online Resource elibrary. In 2014, PIRMA hosted a number of employment-related webinars including Dealing with and Understanding the ADA, Practical Guidance on Wage and Hour Laws, A Guide to Managing Your HR Functions, Progressive Discipline and Hiring Smart. In looking to continuously expand the resources offered to PIRMA Members, in 2015 PIRMA will add six new law enforcement training modules to the elibrary over the course of the year, including Rapid Response to the Active Shooter, Body Cameras, Tragedy of Complacency and more. As the 2014 year came to a close, we were honored that 656 Pennsylvania public entities continue to choose PIRMA as their insurance alternative. The loyalty of the PIRMA membership is intrinsic to PIRMA s success. We look forward to working with the PIRMA Board and the entire service team in the years to come and we thank you for your continued participation in PIRMA. 7

8 Marketing Report loyalty to the program, the various service providers for their expertise, and to the Board of Directors for their commitment to protecting the membership through thoughtful decision-making. We are proud to be a part of this successful and dedicated program. of Directors for their long-lasting trust and be assured that they will continue to receive the excellent service they have grown to expect. Andrew DiProspero H. A. Thomson Company Since 1987, H.A. Thomson has had the privilege of marketing and servicing the largest liability and risk management public entity pool in Pennsylvania. The growth and success of the pool can be credited to the dedication of all parties involved; from the membership itself for their As Pennsylvania s largest provider of municipal insurance, H.A. Thomson has the resources to offer the PIRMA membership a full range of services including coverage form analysis, contract review, loss control assessments, safety inspections, updates on municipal legal environment, risk management reviews, and more. H.A. Thomson would like to thank the membership and the Board 8

9 Membership We welcome the following entities who became Members of PIRMA in 2014: Lycoming County Bastress Township York County Crossroads Borough Eastern York County Emergency Management Agency We thank the following Members of PIRMA for their continued support: Adams County Abbottstown Boro. & Munic. Authority Bendersville Boro. Carroll Valley Boro. & Sewer Water Auth. Conewago Township & Authority Cumberland Township Cumberland Twp. Authority Eastern Adams Reg. Police Dept. Fairfield Munic. Authority Freedom Twp. Germany Twp. Hamilton Township Latimore Twp. Liberty Township Possum Valley Sewer Authority York Springs Boro. & Municipal Authority Allegheny County Avalon Borough Avonworth Municipal Authority Bradford Woods Borough Crafton Borough Emsworth Borough Fawn Township Fawn Twp. Sewer Authority Indiana Township Marshall Township Marshall Township Sanitary Authority McKee s Rocks Boro. Northern Regional Police Department Northern Tier Regional Library Association Pine Twp. Richland Twp. Rosslyn Farms Boro. West Elizabeth Borough Wexford Vol. Fire. Co. Wilmerding Borough Armstrong County Apollo Borough Bradys Bend Township Elderton Boro. Ford Cliff Boro. Manorville Boro. Perry Twp. Worthington Boro. Worthington- W. Franklin Joint Parks Worthington/ W- Franklin Jt Mun. Auth. Beaver County Aliquippa Munic. Authority Baden Boro. Baden Boro. Munic. Authority Baden Boro. Vol. Fire Co. Economy Borough Economy Borough Mun.Authority Fallston Boro. Franklin Twp. Hopewell Township Independence Township New Sewickley Township North Sewickley Township Water Authority Ohioville Borough W. Mayfield Boro. Bedford County Hyndman Borough Municipal Authority Kimmel Twp. Berks County Bern Twp. Bern Twp. Munic. Authority Bernville Boro. Brecknock Township Exeter Twp. & Municipal Authority Laureldale Boro. Lower Alsace Township Lyons Boro. & Munic. Authority Maidencreek Twp. Maidencreek Twp. Authority N. Heidelberg Twp. Northern Berks Regional Police Oley Township Ontelaunee Municipcal Authority Ontelaunee Township Pike Township Ruscombmanor Twp. Sinking Spring Boro. & Authority Union Township Upper Tulpehocken Township Washington Twp. Washingtown Twp. Munic. Authority Windsor Township Wyomissing Valley Joint Munic. Auth. Blair County Blair Region Code Administration Committee Blair Township Catharine Township Frankstown Township Frankstown Twp. Sewer Auth. Huston Twp. Snyder Township Taylor Township Woodbury Twp. Bradford County Monroe Twp. Wells Township Wysox Township Bucks County Bristol Boro. Bristol Recreation Auth. Central Bucks Emergency Response Team Doylestown Twp. Doylestown Twp. Munic. Authority Hilltown Township Water & Sewer Authority Morrisville Boro. Morrisville Munic. Authority Nockamixon Township Pennridge Regional Police Department Richlandtown Boro. Telford Boro. Telford Boro. Authority Wrightstown Township Yardley Borough Sewer Authority Butler County Brady Township Center Township Clay Township Franklin Twp. Marion Twp. Municipal Code Association Valencia Borough Washington Township Cambria County Ashville Boro. Brownstown Boro. Chest Twp. Dean Township E. Conemaugh Boro. East Hills Recreation Commission Franklin Borough Gallitzen Township Gallitzin Borough & Water Authority Gallitzin Borough Sewer Authority Middle Taylor Township Portage Borough Municipal Authority Southmont Boro. Upper Yoder Twp. Upper Yoder Twp. Munic. Authority West Hills Regional Police Dept Cameron County Emporium Borough Mid-Cameron Authority Carbon County Banks Twp. Beaver Meadows Borough Coaldale-Lansford-Summit Hill Sewer Authority Franklin Twp. Lausanne Township Mahoning Township Nesquehoning Borough Parryville Borough Towamensing Twp. 9

10 Centre County Centre Hall - Potter Sewer Authority Curtin Township Huston Township Authority Milesburg Borough & Authority Mountaintop Area Munic. Auth. Mountaintop Regional Water Authority Penn Twp. Snow Shoe Boro. Union Twp. Chester County Atglen Boro. & Sewer Authority Birmingham Twp. Caln Township Chest-mont Emergency Response Team Downingtown Area Regional Authority Downingtown Municipal Water Authority E. Bradford Township E. Fallowfield Twp. E. Nantmeal Twp. E. Nottingham Twp. E. Pikeland Township Elk Twp. Franklin Township Honey Brook Boro. Authority Honeybrook Township Kennett Area Park Authority Kennett Twp. London Grove Township Municipal Authority Londonderry Twp. Lower Oxford Twp. Malvern Borough N. Coventry Township New London Twp. Newlin Twp. Northwestern Chester County Municipal Authority Oxford Area Recreation Authority Oxford Area Sewer Authority Penn Twp. Sadsbury Twp. Sadsburyville Fire Co. No. 1 Spring City Boro. Thornbury Twp. Upper Oxford Twp. Upper Uwchlan Township & Authority Valley Forge Sewer Authority W. Brandywine Twp. W. Brandywine Twp. Mun. Auth W. Caln Township W. Marlboro Twp. W. Pikeland Twp. W. Whiteland Twp. Wallace Twp. & Sewer Authority West Grove Borough West Nantmeal Township Westtown East Goshen Police Dept. Westtown Twp. Clarion County Brady Township Clearfield County B.C.I. Municipal Authority Burnside Boro. & Water Authority Chest Twp. Girard Township Girard Township Mun.Authority Greenwood Twp. Jordan Township Morris - Cooper Regional Police Department Clinton County Bald Eagle Twp. & Authority Mill Hall Boro. Noyes Township Porter Township Municipal Authority Porter Twp. Renovo Borough South Renovo Borough Columbia County Benton Boro. & Munic. Water & Sewer Authority Briar Creek Boro. Catawissa Boro. Madison Township & Authority Millville Borough North Centre Township Pine Township Crawford County Bloomfield Township Bloomfield Twp. Sewer Auth. Cochranton Borough Conneaut Lake Municipal Authority Linesville Borough & Municipal Authority Meadville Area Recreation Authority N. & S. Shenango Joint Munic. Auth. North Shenango Township Northwest Crawford County Sewer Auth. Rome Twp. Townville Borough West Fallowfield Township West Shenango Township Cumberland County Cooke Township Penn Twp. Shippensburg Twp. Southampton Township Upper Frankford Twp. Upper Frankford Vol. Fire Company W.Shore Recreation Commission Dauphin County S. Hanover Twp. & Auth. Steelton Boro. Williams Twp. Delaware County Chaddsford Twp. Sewer Authority Delaware Co. Housing Auth. Rutledge Boro. Thornbury Twp. Elk County Ridgway Borough Erie County Albion Borough & Authority Amity Township Concord Township Conelway Regional Emergency Mgmt Agency Elgin Boro. Girard Township Haborcreek Twp. Sewer Auth. Union City Borough Municipal Authority Union Twp. Waterford Borough Wattsburg Borough Wayne Twp. & Wayne Twp. Sewer Auth. Fayette County Belle Vernon Borough Brownsville Township N. Fayette Co. Munic. Authority Newell Municipal Authority Southwest Regional Police Board Springhill Township Forest County Green Township Franklin County Fannett Twp. Metal Township Mont Alto Boro. St. Thomas Twp. Munic. Auth. Warren Township Fulton County Bethel Township Sewage Authority Thompson Township Greene County Greensboro Borough Monongahela Township Springhill Twp. Huntingdon County Birmingham Borough Dublin Township Marklesburg Borough Miller Township Morris Township Oneida Township Petersburg Borough Smithfield Twp. Walker Twp. & Walker Twp. Municipal Authority Indiana County Armstrong Township Cherry Tree Boro. Clymer Borough Glen Campbell Boro. North Mahoning Township Jefferson County Big Run Area Municipal Authority Eldred Township Washington Twp. Winslow Township Juniata County Beale Township Delaware Township East Waterford Sewer Authority Fermanagh Twp. Greenwood Twp Mifflin Boro. Mifflintown Boro. Milford Township Port Royal Borough Port Royal Borough Municipal Authority Susquehanna Twp. Thompsontown Boro. Twin Boroughs Sanitary Auth. Walker Township Lackawanna County N. Abington Twp. Newton Twp. Ransom Township Springbrook Twp. Sewer Auth. 10

11 Lancaster County Bainbridge Water Authority Brecknock Township Christiana Borough & Christiana Boro Authority Colerain Twp. Columbia Borough & Authority Conoy Township Donegal-Elizabethtown Area Appeals Board Drumore Twp. E. Donegal Sewer Authority E. Donegal Twp. Eden Twp. Elizabeth Twp. Elizabethtown Area Park Authority Elizabethtown Borough Elizabethtown Regional Sewer Authority Ephrata Area Joint Authority Little Britain Twp. Manheim Central Re. Comm. Marietta-Donegal Joint Authority Maytown - E. Donegal Twp. Fire Co. Millersville Borough Mount Joy Twp. Northwest Regional Lancaster County Police Depart Pequea Township Southern Regional Police Commission Strasburg Boro. & Authority Susquehanna Regional Police Department Terre Hill Boro. W. Donegal Township Weaverland Valley Fire Department West Lampeter Township Lawrence County Bessemer Borough & Authority Enon Valley Boro. Hickory Township Little Beaver Twp. New Beaver Borough Pulaski Township Municipal Authority Slippery Rock Township Washington Twp. Wilmington Twp. Wilmington Twp. Sewer Authority Lebanon County Heidelberg Twp. Jonestown Borough Millcreek Twp. Mt. Gretna Boro. & Authority Northern Lebanon Co. Authority Palmyra Area Recreation & Park Commission S. Annville Twp. & Authority Union Twp. W. Cornwall Twp. Lehigh County Coopersburg Borough & Authority Lehigh County Authority Luzerne County Bear Creek Village Boro. Black Creek Twp. Dorrance Township Edwardsville Boro. Hollenback Township Jackson Twp. Larksville Boro. Larksville Borough Sewer Authority Luzerne Boro. New Columbus Boro. Rice Twp. Shickshinny Boro. Twin Co. Joint Mun. Auth. Union Twp. Lycoming County Armstrong Township Cogan House Township Franklin Township Gamble Township Hughesville-Wolf Authority Lewis Twp. Muncy Creek Township Muncy Township & Muncy Township Water Authority S. Williamsport Boro. Susquehanna Township Washington Township Washington Twp. Vol. Fire Co. Wolf Township Woodward Township McKean County Ceres Township Hamilton Twp. & Ludlow VFC Hamlin Township Keating Township Lafayette Twp. Port Allegany Area Recreation Auth. Port Alleghany Boro. & Munic. Authority Sergeant Township Mercer County Coolspring, Jackson, Lake Latonka Jt. Auth. Fairview Township Hempfield Township Jackson Township Liberty Township Perry Twp. Salem Township Sandy Lake Boro. Sandy Lake Township Sheakleyville Boro. Shenango Township & Authority Wheatland Borough Mifflin County Brown Township Municipal Authority Decatur Twp. McVeytown Boro. Menno Township Mifflin County Regional Police Mifflin County Solid Waste Authority Municipal Authority of the Borough of Lewistown Union Township Municipal Authority Monroe County Eldred Twp. Paradise Twp. Pocono Jackson Jt. Water Auth. Price Twp. Stroud Region Open Space & Rec Commission West End Park & Open Space Commission Montgomery County Bryn Athyn Boro. Collegeville Boro. Limerick Township Limerick Twp., Municipal Authority Lower Frederick Twp. Lower Pottsgrove Sewer Authority Lower Pottsgrove Township Pennsburg Borough Perkiomen Municipal Authority Perkiomen Twp. Pottstown Borough & Authority Rockledge Borough Royersford Boro. Schwenksville Borough Trappe Borough Upper Hanover Authority Upper Merion Township Upper Pottsgrove Twp. Upper Providence Twp. & Sewer Authority Upper Salford Township W. Conshohocken Borough & Municipal Authority W. Pottsgrove Township Montour County Cooper Twp Municipal Authority Danville Boro. Danville Boro. Municipal Authority Limestone Twp. Mahoning Township Authority Mahoning Twp. Mayberry Twp. Montour Area Recreation Commission Valley Township Mun. Authority Valley Twp. Washingtonville Borough Municipal Authority Northampton County Allen Twp. Bath Boro. Bushkill Township Chapman Boro. Colonial Regional Police Department East Allen Township Mun Auth First Regional Compost Authority Forks Township Glendon Borough Lehigh Township Nazareth Boro. Munic. Authority Walnutport Boro. Wilson Borough Wind Gap Munic. Authority Northumberland County E. Chillisquaque Twp. East Cameron Twp. Jordan Township Ralpho Twp. Munic. Authority Rush Township Turbotville Borough Upper Mahonoy Township W. Chillesquaque Township Zerbe Twp. Perry County Liverpool Twp. New Buffalo Boro. Rye Twp. Tyrone Township Pike County Delaware Twp. Dingman Twp. Greene Township Lehman Township Lehman Water & Sewer Auth. 11

12 Milford Boro. Milford Borough Authority Milford Township Porter Twp. Sholola Township Potter County Allegany Twp. Homer Township Oswayo Borough Oswayo Twp. Sharon Twp. Schuylkill County Auburn Munic. Authority Blythe Township Branch Twp. Butler Township City Of Pottsville City of Pottsville Hospital Authority Coaldale Borough Cressona Boro. Deer Lake Boro. Delano Township East Brunswick Township Frailey Township Hegins Township Mahanoy City Sewer Auth. Mahanoy Township Mahanoy Township Authority McAdoo Boro. Mechanicsville Boro. Mt. Carbon Boro. N. Manheim Twp. M.A. New Philadelphia Borough Norwegian Twp. & Sewer Authority Palo Alto Borough Pine Grove Borough Pine Grove Township Authority Pine Grove Twp. Port Clinton Borough Reilly Twp. Ringtown Boro. & Munic. Auth. Rush Twp. Schuylkill Twp. Shenandoah Borough Shenandoah Borough Municipal Authority Tremont Boro. Tremont Twp. Walker Twp. Washington Township Wayne Township Wayne Township Municipal Authority West Brunswick Township West Penn Township Snyder County Adams Township Adams Twp. Munic. Auth. Beaver Township Kreamer Municipal Authority Somerset County Indian Lake Borough Sullivan County Eagles Mere Borough & Authority Laporte Township Susquehanna County Great Bend Boro. Jackson Twp. Montrose Munic. Authority New Milford Boro. New Milford Munic. Authority Oakland Borough Thompson Boro. Tioga County Deerfield Township Elk Twp. Elkland Borough Morris Township Tioga Township Union County Gregg Township Municipal Authority Lewsiburg Area Recreation Authority Mifflinburg Boro. & Municipal Authority New Berlin Borough New Berlin Municipal Authority Seda-Cog Joint Rail Authority Venango County Allegheny Township Warren County Cherry Grove Twp. Columbus Township & Authority Limestone Township Southwest Twp. Sugar Grove Boro. Sugar Grove Township Youngsville Boro. Washington County Beallsville Borough California Borough Carroll Township Carroll Twp. Authority Claysville Borough Deemston Borough Donegal Township Dunlevy Boro. E. Finley Twp. E. Washington Boro. Elco Boro. Houston Boro. Long Branch Boro. Mid-Mon Valley Regional Planning & Zoning Comm Mid-Mon Valley Water Pollution Auth. Morris Township R.E.S. Regional Police Dept. Roscoe Boro. South Franklin Township Speers Boro. W. Alexander M.A. W. Pike Run Twp. Wayne County Buckingham Twp. Cherry Ridge Sewer Auth. Cherry Ridge Township Clinton Twp. Dyberry Twp. Hawley Area Authority Mt. Pleasant Twp. S. Canaan Twp. Westmoreland County E. Vandergrift Boro. Ligonier Township Municipal Authority Penn Trafford Area Rec. Commission Wyoming County Tunkhannock Borough Municipal Authority York County Dallastown Borough Dallastown Yoe Water Authority Dover Borough East Hopewell Township Eastern York Co. Sewer Auth. Fawn Township Franklintown Boro. & Munic. Authority Hellam Twp. Hopewell Area Park & Recreation Board Hopewell Township JLS Recreation Association Jacobus Boro. Lewisberry Area Joint Authority Lewisberry Borough Lower Chanceford Township Manchester Twp., & Municipal Authority Manheim Township New Freedom Borough & Authority North Codorus Twp, Auth. & VFC North Hopewell Twp. Red Lion Boro. Red Lion Munic. Authority Shrewsbury Township Southern Police Commission Southwestern Regional Police Dept. Springfield Twp York County Sewer Auth Springfield Twp. W. Manchester Twp.& Sewer Auth. Yoe Borough 12

13 Financial Stability Evaluation and Oversight PIRMA has contracted with two firms to obtain independent analysis and audit of its financial operations. Plante Moran, PLLC prepares an audited financial report on an annual basis and, in 2014, provided an unqualified opinion of the Pool s financial statements. Demotech, Inc. an independent financial analysis services firm, provides a Financial Stability Rating (FSR). PIRMA s FSR is based on four specific areas of analysis: financial stability, loss reserves, administration, and overall performance. For 2014 Demotech has, for the twenty-fifth consecutive year, assigned their highest rating of AAA (unsurpassed) in each area. Membership Stability and Growth Review by independent organizations such as Plante Moran, PLLC and Demotech is an important tool to analyze the financial integrity of a Pool such as PIRMA, but it is also appropriate to evaluate a Pool s success by its growth and maintenance of membership. Since its inception in 1987, the Pool has enjoyed both steady growth and loyalty from its Members, who totaled 656 at the end of Reinsurance Adequate and appropriate reinsurance is essential to protect the financial integrity of a group self-insurance program. PIRMA is a member of a unique reinsurance pool known as American Public Entity Excess Pool (APEEP). This reinsurance arrangement is composed strictly of public entity pools that mirror PIRMA in their operation. Members of PIRMA receive limits of liability of $10,000,000 for claims resulting from general, automobile, police professional or public officials liability. Two major reinsurers participate with APEEP in providing this protection. Property and vehicles are reinsured through APEEP and Lexington Insurance Company. Limits to $750,000,000 are available for loss in any one occurrence. 13

14 Financial Overview Assets Year Ended December Current Assets Cash and cash equivalents $ 2,094,441 $ 1,461,193 Member contributions receivable 752, ,228 Investment securities 5,371,765 5,858,938 Accrued investment income 51,492 56,254 Deductibles recoverable 40,000 20,000 Reinsurance receivable on paid claims 9, Member contributions to be billed in the future 6,900,000 7,400,000 Total current assets 15,219,709 15,586,496 Noncurrent Assets Investment securities - Net of current portion 7,571,397 7,972,532 Restricted Assets 1,000,0001 1,000,000 Member contributions to be billed in the future 18,129,590 17,784,562 Total noncurrent assets 26,700,987 26,757,094 Total assets $ 41,920,696 $ 42,343,590 Liabilities and Net Assets Liabilities Current liabilities: Claims and claim adjustment expense reserves $ 7,221,952 $ 7,841,428 Reinsurance premiums payable 78,336 64,775 Accounts payable and accrued expenses 361, ,673 Total current liabilities 7,661,886 8,269,876 Long-term liabilities: Claims and claim adjustment expense reserves - Net of current portion 18,129,590 17,784,562 Unearned premium reserves 719, ,252 Total long-term liabilities 18,849,371 18,417,814 Total liabilities 26,511,257 26,687,690 Net Assets - Unrestricted 14,409,439 14,655,900 Net Assets - Restricted - PA Dept. of Transportation 1,000,0001 1,000,000 Total liabilities and net assets $ 41,920,696 $ 42,343,590 14

15 Revenue, Expenses, and Changes in Net Assets Year Ended December Operating Revenue Member contributions - Operating $ 16,049,248 $ 17,510,096 Reinsurance premiums ceded (3,053,329) (3,155,029) Change in contributions that will be billed in the future to pay unpaid claims 4,003, ,972 Total operating revenue 16,998,972 14,510,039 Operating Expenses Claims and claim adjustment expenses: Paid 8,727,744 11,134,509 Recoveries (1,414,119) (1,904,497) Decrease in claims and claim adjustment expense reserves 3,996, ,448 Total claims and claim adjustment expenses 11,310,054 9,504,460 Marketing and administrator fees 4,425,341 4,743,221 Other 618, ,510 Total operating expenses 16,353,767 14,930,191 Operating Income (Loss) 645,205 (420,152) Nonoperating Revenue Investment earnings - Interest and dividends 232, ,717 Net realized and unrealized gains on investments 761, ,483 Total nonoperating revenue 994, ,200 Withdrawals - Member capital (87,444) (104,587) Increase (Decrease) in Net Assets 1,552, ,461 Net Assets - Beginning of year 13,857,251 15,409,439 Net Assets - End of year $ 15,409,439 $ 15,655,900 15

16 Service Providers Administration PIRMA has contracted with York Risk Pooling Services, Inc. to provide administrative services to the Pool. York s responsibilities include the general administration of PIRMA and oversight of operations including claims, underwriting, marketing and loss control. York is located in Farmington Hills, Michigan, and operates as the Administrator of six (6) other public entity risk sharing mechanisms. York Risk Pooling Services, Inc West Fourteen Mile Road Suite 110 Farmington Hills, MI Michele Chandler (mchandler@yorkrsg.com) Marketing and Customer Service Administration PIRMA has contracted with H.A. Thomson Company of Chester Springs to market the PIRMA program to local governments in Pennsylvania. In addition to marketing the program, H.A. Thomson provides support services on a statewide basis, working directly with the PIRMA Members or their insurance representative. H.A. Thomson meets with the Members on an annual basis to review changes in operations or exposures and to discuss property and liability coverage questions. Additionally, they arrange for payment of contributions, issue coverage documents, and provide assistance with any concerns of the Members. H.A. Thomson Company 961 Pottstown Pike Chester Springs, PA (800) BJ Giangiulio, President Andrew DiProspero, Vice President (adiprospero@hathomson.com) Timothy Lutz, Marketing Representative (tlutz@hathomson.com) Account Managers Janice Fiandra (jfiandra@hathomson.com) Mary Ann Youtz (myoutz@hathomson.com) Georgette Gilman (ggilman@hathomson.com) Patricia Trevisan (ptrevisan@hathomson.com) Loss Control H.A. Thomson Company is the loss control service provider responsible for working with PIRMA Members to implement effective loss control programs. Loss Control is an organized and continuous effort to prevent and decrease losses through the identification and analysis of risk and implementation of loss control measures. This is accomplished by: On-site Member Service Visits Loss Control face-to-face meetings with managers and department heads Loss exposures are identified and specific loss control needs are addressed New Members to PIRMA are visited within 90 days of joining the Pool Existing members are visited regularly with their individual loss control needs in mind Members with large claim severity and frequency are seen annually Loss Control provides assistance in implementing safety practices and programs 16

17 PIRMA s Online Resource elibrary Offers: PIRMA.org PIRMA maintains a website, The site not only provides information on PIRMA and answers on frequently asked questions, but also contains weekly updates of safety articles and copies of the PIRMA Newsletters. Members who have obtained a password from the Administrator, have access to a vast library of loss control information and can order loss control resources at no cost: Access to DVDs and streamed videos Numerous PowerPoint Presentations to download Hundreds of documents including manuals, loss control policies, job descriptions, and checklists Online training programs, which are available 24 hours a day, 7 days a week Loss control consultants are only a phone call or away from the Members: Loss Control Service Provider H.A. Thomson Company 961 Pottstown Pike Chester Springs, PA (800) John Johns, Loss Control Manager (jjohns@hathomson.com) Scott Miles, Loss Control Specialist (smiles@hathomson.com) Greg Cunningham, Loss Control Specialist (gcunningham@hathomson.com) Loss Control Management York Risk Pooling Services, Inc West Fourteen Mile Road Suite 110 Farmington Hills, MI (800) , ext J.T. Babish (J.T.Babish@yorkrsg.com) General Counsel Stephen Siana, Esq. of the law firm Siana, Bellwoar & McAndrew, LLP, is General Counsel to PIRMA. Mr. Siana has been involved with PIRMA since its inception. In addition to serving as General Counsel, Mr. Siana provides litigation management services to the Pool, consisting of oversight to and consultation with PIRMA s administrator, claims service provider, and various law firms providing legal defense to members, in an effort to ensure a coordinated response to third party claims against the Members of PIRMA. Siana, Bellwoar & McAndrew, LLP Ludwig s Corner Professional Center 941 Pottstown Pike, Suite 200 Chester Springs, PA (610) Stephen Siana, Esq. (ssiana@sianalaw.com) 17

18 Claims Service Provider and Claims Management PIRMA utilizes a network of approved attorneys who have complete familiarity with the Pool coverage and the available immunities. They operate under the close supervision of the PIRMA General Counsel and York Claims Legal Staff who also oversee the operations of IRM, a specialty claims service firm, which has been retained to provide initial response to, and investigation of, Members claims. Claims Administration York Risk Pooling Services, Inc West Fourteen Mile Road, Suite 110 Farmington Hills, MI (800) Chris Dondzila (Chris.Dondzila@yorkrsg.com) George Piskos, Esq. (George.Piskos@yorkrsg.com) Katie Derthick, Esq. (Katie.Derthick@yorkrsg.com) Claims Service Provider Integrated Risk Management (IRM) 961 Pottstown Pike Chester Springs, PA (800) Kevin Pomian, Executive Vice President (kpomian@irmclaim.com) Todd Breneman, Claims Manager (tbreneman@irmclaim.com) Auditing Since the inception of PIRMA, the Board of Directors has contracted with an independent auditing firm to conduct an audit in accordance with standards generally accepted in the United States of America. Each year of the Pool s operation has resulted in the issuance of an unqualified clean opinion at completion of the audit. This is the highest level of opinion that is permitted to be issued. Plante Moran, PLLC 1111 Michigan Avenue East Lansing, MI (517) Kevin Krause (kevin.krause@plantemoran.com) Financial Stability Rating (FSR) The PIRMA Board of Directors contracts, on an annual basis, with Demotech, Inc., an independent financial analysis services firm, to provide a Financial Stability Rating (FSR). PIRMA s FSR is based on four specific areas of analysis: financial stability, loss reserves, administration, and overall performance. For twenty five (25) consecutive years, PIRMA has earned the highest available FSR of AAA (Unsurpassed). Demotech, Inc Tuller Parkway Dublin, OH (800) Joseph Petrelli (jpetrelli@demotech.com) 18

19 Past Board Members Appreciation is extended to the following individuals whose knowledge and commitment have contributed to the success of PIRMA. Paul Kahler Bath Borough Rodney Jarinko Moore Township Charles Feindler Telford Borough Henry Pennline Carroll Township Joe Digerlando Bushkill Township Robert Glass Limerick Township Doris Concordia Exeter Township Joseph Janasik Tredyffrin Township Sterling Smith Red Lion Borough Van Montague Dublin Township David Jones Doylestown Township Katharine Trolier Upper Uwchlan Township Donald Carman Elkland Borough Helen Jackson New Beaver Borough Carol Sambol Baden Borough From a representative of the Pennsylvania State Association of Boroughs (PSAB) also served on the Board of Directors. At various periods, Charles Feindler and Sterling Smith were appointed as the PSAB representative. 19

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