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Payments on retrospective deposit balances were temporarily deferred between 2010 and 2013, however, in accordance with the Retrospective Deposit Payment Policy, payments are scheduled to resume beginning July 1, 2013 for the Liability program and July 1, 2015 for the Workers’ Compensation program.
Optional Payment Plans
Prior to April 30, 2013 all members with a deposit balance due in the Liability program are requested to notify the Authority regarding their payment option selection. Members can do this by responding to the e-mail survey sent to Finance Directors, Risk Managers, and City Managers on March 20, 2013.
Please use the Payment Plan Calculator to see the various options for your agency.
Annual Fee
There is an annual fee associated with all of the optional payment plans. The rate that will be charged is not yet known. The rate will be set based on the Authority’s portfolio rate of return as of April 30, 2013. For illustration purposes only, the payment plan calculator uses the Authority’s portfolio rate of return as of January 31, 2013 (1.47%) for payment option #1, which is a 1 year extension. The annual fee increases by 0.125% for each year added, up to a maximum of 6 years. The rate for the annual fee will be published as soon as the April portfolio earnings report is available. In the meantime, please consider the outcome of the payment calculator to be a preliminary estimate for this reason.
Incentive Plan
The incentive plan is still available for the Workers’ Compensation program. It provides discounts to members who are willing and able to voluntarily accelerate payment on retrospective deposit balances owed to the Authority. Incentive plan payments can be made in any amount, and as often as desired for partial or full debt reduction. Payments under the incentive plan must be received by the dates shown below in order for the applicable discount to be recognized.
| Incentive Plan Discount Rates |
| Payments Received Between |
Workers’ Compensation Program |
| 01/01/2013 - 06/30/2013 |
4% |
| 07/01/2013 - 12/31/2013 |
3% |
| 01/01/2014 - 06/30/2014 |
2% |
| 07/01/2014 - 12/31/2014 |
1% |
Full Settlement of Retrospective Adjustments
Annual Retrospective computations occurring after payment plans are established in each program, will not impact the payment plans. These subsequent adjustments will not be deferred over multiple years or rolled into the payment plans, but rather, kept separate and settled in full as part of the first annual contribution invoice following the publication of such adjustments. Full settlement will be applicable to both deposits and refunds. Full settlement will apply to retrospective adjustments in the Liability program beginning with the annual adjustment in October 2013, and in the Workers’ Compensation program beginning in October 2015. An illustration of how this will impact future invoices from the Authority can be found on page 2 of the timeline posted here.
If you have questions or concerns please contact Lam Le, Financial Analyst, at (562) 467-8729 or by e-mail at lle@cjpia.org.
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