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INSURANCE MATTERS
A Newsletter for Members of the CCAP Insurance Programs
Owned by Members, Governed by Members, Service to Members
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| Specialty Lines | |
Hello ,
The Pennsylvania Counties Risk Pool (PCoRP) was one of the sponsors of the recent CCAP County Criminal Justice System Best Practices Awards luncheon. CCAP, the Pennsylvania Commission on Crime and Delinquency (PCCD) and the Pennsylvania Prison Wardens Association presented Tioga and Lycoming Counties with awards recognizing programs that have implemented best practices in reducing populations at local jails. Lehigh County also was an award winner for their excellent Criminal Justice Advisory Board (CJAB).
Throughout the luncheon I was struck by the "unofficial" theme which emerged in the comments from presenters and award winners. In one form or another, everyone championed the value of collaboration. In my remarks I noted one of PCoRP's goals was to assist counties in any way possible to better administer their operations, including those of their prisons. PCoRP's fifteen plus years of hosting the Prison Risk Management Workshop, and more recently adding special Prison Personnel Workshops, are ways to achieve this goal. Sponsoring an awards program's meeting to allow recognition of best practices also helps. Several speakers echoed my observation that one of the best things about county government is the lack of competition among counties, which allows sharing of ideas, policies, documents and programs. Jim Strader, deputy director of PCCD's office of criminal justice, shared an acronym used by one county common pleas judge: CASE. Copy And Steal Everything!
The other type of collaboration celebrated at the awards luncheon was the internal workings of the prison staff, elected officials, county staff and court staff and what amazing results can be achieved. This becomes even more important in a time when resources are already stretched thin. More importantly were the ideas and improvements to the county systems, allowing the county to more efficiently serve those who need help, as well as to lower recidivism.
This idea that collaboration helps us to find new and better ways of helping others is not multidimensional physics - it is almost a bromide. What amazes me is how often our own "adult" behavior wipes out any chance of collaboration before it can even begin.
Make sure you call us when you need help with something,
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| STARS WEB is shutting down for an upgrade | | By Dave Harman, Claims Manager
On July 12th & 13th the STARS Web system will be shut down while various upgrades are performed. During this time Members of PCoRP, PComp and PELICAN will not be able to report claims on-line. During these two days we are requesting that Members of these programs fax in any new claims to the claims fax machine at (888) 692-2368.
If anyone has any problems or questions during this time, do not hesitate to contact any of the claims representatives for assistance. We all appreciate your patience during this upgrade.
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| Cameron County rejoins PCoRP |
One of the original twelve members of the Pennsylvania Counties Risk Pool is back! After leaving PCoRP at the end of the 07-08 policy year, the county rejoined effective June 1, 2010. The county discovered the commercial carrier they switched to did not have the coverage available through PCoRP, especially for public officials bonds. PCoRP is very pleased to welcome them back!
With Cameron rejoining, and Lawrence County joining in March, PCoRP now insurers more counties than at any other time in its twenty-three year history! Forty-four counties belong to PCoRP, which is 65% of all Pennsylvania counties. PCoRP also has 4 county related entity members, bringing total membership to forty-eight, the largest membership ever.
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| Erie County prison receives accreditation | | By John Sallade, Managing Director, CCAP Insurance Programs
The Erie County Department of Corrections has been accredited by the American Correctional Association (ACA) of Alexandria, VA. ACA announced the accreditation at their 2010 Winter Conference in January.
Warden James Veshecco and his staff completed a rigorous self-evaluation, followed by an outside review by a team of independent auditors. According to Lannette Linthicum, chairperson of the ACA Commission on Accreditation for Corrections, Erie's "staff and other officials are complying with the requirements of the accreditation process (which) is indeed a statement of a high level of commitment to the staff and persons under your care."
As a member of PCoRP, the ACA accreditation earns the county a premium credit as the completion of the prison policies review section of the PCoRP Loss Control Incentive Program.
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| Making the most of your time and money in the current interest rate environment |
Although the first rays of recovery have begun to filter through the economic clouds, we remain in a period of historically low interest rates. That means local governments should still be searching for ways to maximize opportunities for putting their money to work and, whenever possible, trim expenses associated with financial management.
Fortunately, PLGIT has long-established practices, tools and products to help you accomplish that objective. Here are a few suggestions:
STRIKE THE BEST BALANCE
Local governments have a significant responsibility where liquidity and cash flow are concerned. Funds must be available in order to meet specific obligations on short notice, including substantial expenses like payroll, as well as to maintain some "cushion" for unexpected expenses. But a fiscally prudent manager understands that not all funds must be liquid, and that medium and short-term investment products can present ways for otherwise "stationary" funds to produce additional income.
For funds that can be invested for slightly longer terms, municipalities should seek to set the term on a fixed-rate investment so that it matches a known future expense. Instead of rolling a three-month CD over for another three-month term, for example, the municipality should consider the specific use for those funds, and when those funds are needed.
CONSIDER ALL INVESTMENT OPTIONS
PLGIT compiles information on fixed rate CDs of more than 400 banks from across the country. With such a wide range of options in addition to the standard PLGIT funds, local governments have a number of options by which they can combine fixed rates of investments to any maturity date between 60 and 365 days, thus enabling managers to potentially maximize interest income and "ladder" the timing of those funds' availability.
The PLGIT-CD Purchase program simplifies the process and saves time by offering PLGIT Participants the chance to access our network of 400 banks with one phone call. PLGIT handles investment and maturity transfers by same-day wire through the Participant's PLGIT-Class account.
By far the largest PLGIT program by investment is PLGIT-Class shares. Consider, however, that PLGIT offers shorter-term investments like PLGIT/Plus-Class shares, with a $50,000 minimum initial investment and full liquidity after 30 days, and PLGIT/I-Class shares, which offers the same minimum investment and two withdrawals per month with all transactions done through EON - PLGIT's Easy Online Network.
SEE YOUR P-CARD AS A "REBATE-IN-WAITING"
By now, most managers are aware of the benefits of using a purchasing card - or "P-Card." Besides the important benefits of security, speed of transaction, control of purchasing and ease of recordkeeping, the PLGIT P-Card offers a rebate on cumulative purchases over a certain amount.
The PLGIT P-Card, a MasterCard offered through Harris Bank, compares favorably with competing cards, offering higher rebate percentages and lower thresholds for receiving rebates. At the end of the most recent spending cycle, rebate checks were sent out to 123 Participants totaling $105,000. A total rebate of $187,981 has been distributed since the program's inception.
Use of a PLGIT P-Card could generate revenue from financial transactions that would be made regardless of the means of payment. Rebates begin at $50,000 in annual spending (P-Card spending years run from September 1 - August 31) with an increased percentage for each spending level. Just by spending $50,000 through the P-Card, the minimum spend level for a rebate, the local governments would earn $125 in additional income or 0.25%, which is better than the yield on many investments these days.
REVIEW ALL CASH MANAGEMENT COSTS
Do you know how much it costs for you just to manage your municipality's finances? Local governments may be paying significant fees for check processing, deposits, transfers to other financial institutions, and other costs.
In addition, some financial institutions have a difference in the ledger balance, the funds between when a check is deposited and when the account is credited with the funds. The lost interest by waiting for checks to clear can have a recurring impact on the amount of interest income earned by a local government - or might result in penalties due to a minimum balance that is not met.
Governments should not be distracted by the lure of what may appear to be great earnings on investments when in reality the yield is more than offset by other costs. When evaluating interest earnings, local governments should determine the "true yield," that is the amount of interest earned based on their total funds on deposit with the institution before float, compensating balances, and any treasury reserve requirements are deducted from the ledger balance. Another way to minimize costs is to utilize more cost-efficient services such as direct deposit of subsidies, using next-day ACH transfers instead of same-day wire transfers, initiating and viewing transactions online and using credit cards or P-Cards for payments instead of purchase orders.
CONSIDER TIME AS IT RELATES TO YOUR VALUE EQUATION
In addition to potential income lost from missing interest-earning opportunities, or the costs incurred from unexpected fees, consider the cost of the extra time it takes you to manually complete daily tasks like compiling or reviewing statements or generating reports.
PLGIT offers a number of time-saving services through its Easy Online Network (EON). Using EON, managers can perform tasks more quickly and more efficiently including:
PLGIT believes these online services provide additional efficiencies in terms of reducing the amount of time required to complete them.
While some of these suggestions can be implemented right away, others might require a bit more information to help managers put them in place. To learn more about how PLGIT can help you maximize your earning potential, visit www.PLGIT.com, or contact your PLGIT representative.
Brian Sanker is a senior managing consultant with PFM Asset Management LLC, Investment Advisor/Administrator to PLGIT, the Pennsylvania Local Government Investment Trust, working in PFM's Harrisburg office. He can be reached at sankerb@pfm.com.
This information does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Trust's portfolios. This and other information about the Trust's portfolios is available in each portfolio's current Information Statement, which should be read carefully before investing. Copies of these Information Statements may be obtained by calling (800) 572-1472 or are available on the Trust's website at www.plgit.com. While the PLGIT and PLGIT/ARM portfolios seek to maintain a stable net asset value of $1.00 per share and the PLGIT/TERM portfolio seeks to achieve a net asset value of $1.00 per share at its stated maturity, it is possible to lose money investing in the Trust. An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Trust's portfolios are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC. Member SIPC.
A description of the PLGIT CD Purchase Program is contained in the PLGIT Information Statement. The Information Statement contains important information and should be read carefully before investing. Participants may purchase Certificates of Deposit through the PLGIT CD Purchase Program only by executing an investment advisory agreement with the Program's Investment Adviser, PFM Asset Management LLC.
The Pennsylvania Powercard Program (the "Program") offers a Procurement Card (a "P-Card"), issued by Harris Bank, N.A., and marketed by PFM Financial Services LLC. PLGIT is a Program sponsor and the Program is marketed to PLGIT Participants. PLGIT receives no compensation for its sponsorship and the Trust is indemnified against any liabilities or costs relating to the Program.
SMPLGIT, PLGIT-Class Shares, PLGIT/PLUS-Class Shares, PLGIT/I-Class Shares, PLGIT/TERM, PLGIT-CD, PLGIT/ARM, PLGIT/SAM, and PLGIT-CAP are service marks of the Pennsylvania Local Government Investment Trust.
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| Handheld communication devices and overuse injuries | | By Gary Nicholson, CHSP, Senior Loss Control Specialist
 As we are all aware, handheld devices have found wide acceptance in our culture. They are used by almost everyone and almost everywhere - inside buildings, inside vehicles, and outdoors. I'm sure in the next decade, communication technology will push the boundary of becoming completely hands-free. However, as we witnessed in the previous decade, people still rely heavily on using their fingers and thumbs as the primary interface with handheld devices.
From the second we wake up to the moments before we go to bed, we text, scroll, email, surf the web, as well as check scores, weather and stocks using our phones or other handheld devices. Now, the same technology that was intended to give us communication freedom has slowly created a physical dependency to stay connected. There is evidence that, at current usage rates, handheld devices may be responsible for an increase in the incidence of musculoskeletal overuse disorders.
We have gone from calling or emailing others on our cell phone to now texting them. Research indicates that texting is the preferred method of communication among individuals 18 to 21, but texting is also becoming greatly used by older adults. Texting appears to be the easiest way to stay connected for those of us who attach great value to connectedness.
Furthermore, recent reports state that persons experience similar physical aches and pains while texting as do persons who are typing. Repetitive and awkward postures in the hands, wrist, shoulders and neck make these individuals prone to carpal tunnel syndrome, bursitis and tendonitis.
Health professionals are now urging individuals who frequently text to avoid over-use injuries by treating texting like any other physical work out. This means keeping the following recommendations in mind while you text:
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Limit texting periods to small doses. Be aware of prolonged and high-speed texting.
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Rest as needed. Any signs of discomfort, soreness or pain should be an immediate indication to take a break.
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Balance. Avoid using only one hand (if possible) while texting.
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Stretch. Prop the palm of your hand up by placing your finger tips (hand facing down) on a flat surface and slowly apply pressure downward while your fingers spread out and your palm eventually contacts the surface. Repeat several times.
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Enable 'smart type' (word completion feature) on your device. This will reduce the number of thumb or finger exertions required to complete a word or sentence.
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Use hands-free devices to make phone calls.
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Consider using a 'speech-to-text' application if you need to communicate using text but wish to speak rather than type.
Although the research of overuse injuries caused by handheld devices is relatively new, the easiest way to prevent overuse injuries is to limit exposure and perform your texting in moderation. And of course, do not shy away from staying in touch with others by using one of the technologies greatest discoveries, the telephone.
Further, texting technology poses a danger on our roads. It is important not to text while driving. The danger has been termed "texting while driving" (TWD) and, needless to say, evidence shows that drivers are putting themselves and others on the road at risk while doing so. The obvious reason why texting while driving is dangerous is due to the fact that a driver must avert their eyes from the road for a period of time, and are not alert to what is occurring around them. So if you need to send a text message, pull off the road to do your texting.
For more information email Gary Nicholson, Senior Loss Control Specialist or call
(800) 895-9039.
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| Quote Of The Month | |
"It's kinda fun to do the impossible."
- Walt Disney
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CCAP Insurance Programs
PO Box 60769, Harrisburg, PA 17106-0769
Phone (800) 895-9039 - FAX (717) 526-1020
Claims Fax (888) 692-2368
Click here to go the insurance section of the CCAP Website.
email:jsallade@pacounties.org
Insurance Matters is published monthly by CCAP Insurance Programs for the use of members of CCAP's UC Trust, PCoRP, PComp, PIMCC, COMCARE, COMCARE PRO, BEST Flex, PELICAN and other insurance programs, and insurance producers of these members.
Advice contained in this publication is not legal advice and members are encouraged to seek the opinion of their solicitor.
The information provided in this publication is not intended to take the place of professional advice. Readers are encouraged to consult with competent legal, financial, or other appropriate professionals. Statements of facts and opinions expressed in this publication, by authors other than Association staff and officers, are the sole responsibility of the authors and do not necessarily represent an opinion or philosophy of the officers, members and staff of the County Commissioners Association of Pennsylvania (CCAP). No endorsement of advertised products or services is implied by CCAP unless those products or services are expressly endorsed, or are owned or managed by the Association programs, or our affiliates. This publication may not be reproduced, modified, distributed, or displayed in part or in whole, by any means, without advance written permission of CCAP. Please direct your requests to John Sallade, Managing Director, CCAP Insurance Programs, jsallade@pacounties.org.
Note: As part of its copyright agreement the CCAP grants the author the right to place the final version of his/her manuscript on the author's homepage, subject to CCAP's standards, or in a public digital repository, provided there is a link to the CCAP website.
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