SECTION 251.505. Total assessment

(a) Each plan year the Office will calculate the total amount to be collected from covered agencies to pay the aggregate costs of:

(1) workers' compensation losses; and

(2) the Office's risk management program.

(b) The office will commission an actuarial study each plan year for the purpose of projecting the total amount of workers' compensation losses which will be paid in the following plan year. The board of the State Office of Risk Management (the Board) will set the amount to be collected based on the actuarial study, with the goal of collecting an amount sufficient to pay the expected losses.

(c) The total assessment will be the total of:

(1) the projected workers' compensation costs for the following plan year;

(2) any amount which the Office has borrowed in the previous plan year for paying workers' compensation costs or any carryover of funds from the previous plan year (expressed as a negative amount); and

(3) the cost of the Office's risk management program.

Source Note: The provisions of this §251.505 adopted to be effective October 8, 2001, 26 TexReg 7877