Creative Thinking In Workers' Compensation Costs
Employer organizations are looking for new solutions to remain competitive
Key Questions:
- Would your organization like to level or custom design your Workers Compensation payments for the next 60 months?
- Would your organization like to be rid of the required LOCs?
- Would your organization like to take this liability off your balance sheet?
Our Solution Set: The Apex Model
- We have built a suite of tools that will address many of the issues workers’ compensation plans face today
- A Workers’ Compensation financing structure that quantifies workers’ compensation and other related costs
- Using a sophisticated actuarial model to clearly define and manage cash outflow given a chosen confidence level
Our Two-Tiered Solution:
- Analyzes the existing arrangement employers have with their providers
- Develops a financial remedy to contain, budget, and fund costs without modifying existing conditions
The Value Proposition
The Apex Model brings the following value to any plan by:
- Establishing an identified and budgeted flat line workers’ compensation cost over 60 months
- Mitigating the need to post LOCs based on the overall collateral established by the fund to cover future exposures over 60 months
- Creating a medium term horizon which allows flexibility to adjust and revise trend data in future funding cycles
- Shifting from a reactive to proactive financial risk management strategy which insulates an organization’s general fund
- Containing volatility to facilitate a cost effective long-term funding and budgeting platform
The Apex Advanced Funding Structure
Apex Advanced Funding
Our Advanced Funding solution has been used effectively for over a decade and can provide Plan Sponsors with:
Five Year Rate Guarantee
- Certainty for Worker' Compensation managers and their employees in an uncertain world
Consistent Monthly Payments
- Predictable and consistent cash flow budget for the Plan Sponsor well beyond the current year
Creates no Obligation on Company's Balance Sheet
- An independent Special Purpose Entity (SPE) utilizing debt, so that the obligation is held by the SPE - NOT the Plan Sponsor
Working With You and Your Consultant
We securitize your workers’ compensation liability over five (5) years by:
- Utilizing a SPE that is separate from the business and for the benefit of plan participants
- Accelerating the tax benefit locked in your reserves
- Establishing a level 5-year or custom designed cash flow expense
- Creating a structure that makes earnings more predictable – remittance to the SPE is your expense
Information Needed for a Phase 1 Assessment
- An actuarial report that identifies your “paid” and “reported losses” and allocated loss adjustment expense development by fiscal year for the last 3 years
Structure Elements and Providers
The Trust
- Organized under IRC§501 (c) (9)
- Trustee – Wilmington Trust - Wilmington, Delaware
- Asset Manager – Principal Financial Group, Des Moines, IA
Private Placement Agents
- The Frazer Lanier Company - Montgomery, AL
- Loop Capital - Chicago, IL
Structuring Team
- Structure Developer and Implementation – Apex Advanced Funding, Oak Brook, IL
- Legal Counsel – Schulte, Roth & Zabel, New York, NY
Contact Information
Contact the Apex Advanced Funding principals for a consultation:
Jeffrey Bemoras
Email: jlbemoras@apexmanagementgroup.com
Chris Stepuszek
Email: cstepuszek@apexmanagementgroup.com
Reach us at our office: (800) 359-0329