A new kind of group - group-retrospective rating
Group-retrospective rating is a voluntary performance based incentive program.
BWC-certified sponsors create groups of employers who practice effective workplace
safety and claims management to achieve lower premiums than they could as individuals.
Organizations choosing to sponsor groups must be certified by BWC. Please review the following links to obtain more information regarding sponsor certification.
Click on the following link to see a list of certified group-rating sponsors as of Nov. 28, 2014.
BWC-Certified Sponsor List: Group-Experience-Rating Program and Group-Retrospective-Rating Program
This list provides employers with the names of BWC-certified sponsors for group rating. Only organizations appearing on the list are permitted to solicit and form the groups for group rating.
Employers continue to pay their own individual premiums and have the opportunity to
receive retrospective premium adjustments based upon the combined performance of the
group. Depending on that performance, the participating employers can receive
either a premium refund or assessment. Forty states have adopted some version of
a retrospective rating plan. This plan provides incentives to the group retro
members to control and reduce losses. So, those members who control losses have
the potential to see lower premiums.
Employers who believe their experience rate or base rate does not properly reflect
their current level of safety could benefit from participating in this program.
And employers who do not qualify for the traditional group-rating program may also
benefit. Participants have the opportunity to directly link premium levels to
We may determine a policy to be in good standing if the employer or group
(sponsoring organization) is current with a BWC-approved, part-payment agreement.
- Be a private, state-fund employer or a public employer
Note: Self-insuring employers and state agency public employers
are not eligible to participate
- Be current on any and all premiums, administrative costs, assessments,
fines or monies owed to BWC
- Have active coverage by the application deadline
- Not have cumulative lapses in workers' compensation coverage in excess of 40 days within the 12 months preceding the application deadline date for group retro rating
Sponsoring organizations also may screen group-retro applicants with their own
underwriting requirements. This is an important step in the process to ensure your
fellow group members are committed to safety and claims cost containment.
How it works
Employers will pay experience- or base-rated premium under the same terms as if they
were not in a retro group. The total premium for the entire group is the
standard premium of the group. The standard premium serves as the benchmark
that is adjusted up and down retroactively.
We will recalculate the group-retrospective premium 12 months after the end of the
policy year, based on developed incurred claim losses, including reserves, for the
whole group during the original policy year. We will compare the new premium
to the standard premium. If the retrospective premium is lower than the standard
premium, we will distribute a refund to the employers in the group. If the
retrospective premium is higher, then we'll charge each employer in the group
We'll recalculate premium again at 24 and 36 months and issue refunds or charge
assessments accordingly. We'll do this based on the percentage of total group
standard premium paid by an employer.
Example: If an employer’s standard premium accounts for 10 percent of the
total group standard premium for that retro year, that employer would receive 10 percent
of all refunds and assessments resulting from that retro year.
We'll also apply a maximum premium ratio (MPR) to all retro groups and take that ratio
into account when billing. This ratio will cap the amount of additional premium a
retro group could pay for a policy year. The group sponsor chooses the maximum premium
ratio for the retro group. Groups who choose a higher MPR would be eligible for higher
refunds. This higher potential return is offset by the possibility of a greater
Payment of refunds/billing of premium
- Premium refunds within four months of the valuation date
- Premium assessments due 28 days after the employer receives the invoice
We'll charge penalties on any additional premium not paid when it is due.
Application and enrollment
Interested employers must apply through a BWC-certified sponsor. Certified sponsors
will provide you with an application and make the final decision whether to
include you in their group-retrospective program. See appropriate rule below for specific
Public employer taxing
To continue participation in a group-retrospective program employers must re-apply each year.
Compatibility with other programs
While participating in the group-retrospective rating, you should verify what other programs are compatible
with it. You may participate in more than one program; however, only certain programs may be combined in the
discount calculation. Use the compatibility chart
found in Ohio Administrative Code 4123-17-74.