SECTION 251.507. Calculating the Allocation of the Total Assessment

(a) The total assessment will be divided among participating agencies based on each agency's:

(1) payroll as a percentage of all participating agencies' payroll;

(2) FTEs as a percentage of the total of all participating agencies' FTEs;

(3) the total number of accepted claims as multiplied by the agency's IFR modifier;

(4) claim costs as a percentage of all claims payments made on behalf of participating agencies; and

(5) such other relevant factors as the Board may determine.

(b) The Office will use a weighted three-year rolling average to calculate payroll, FTEs and injury frequency rate for each covered agency. In the weighted average the most recent completed plan year will constitute 50% of the total for that factor, the next most recent plan year will be given 33% of the total, and the earliest plan year will be given 17% of the total for the factor.

(c) The Office will use a simple three-year rolling average to calculate total number of accepted claims and claim costs for each covered agency.

(d) Subject to modification by the Board pursuant to §251.515 of this subchapter, the factors used in the calculation shall be weighted as follows:

(1) Payroll--12.5%;

(2) FTEs--12.5%;

(3) Accepted Claims as modified by IFR--15%;

(4) Claims cost--60%.

(e) Subject to modification by the Board pursuant to §251.515 of this subchapter, an IFR modifier shall be applied to an agency's total number of accepted claims as follows:

(1) Less than 3.50% (Low) = 0.95%;

(2) 3.50% up to 7.50% (Moderate) = 1.00%;

(3) Greater than 7.50% (High) = 1.05%.

(f) The amount of the total allocation determined by an agency's modified total number of accepted claims cannot exceed 2% of an agency's weighted average payroll. The amount of the total allocation determined by claims costs cannot exceed 4.0% of an agency's weighted average payroll. The difference between the formula-based assessment amount and cap established herein shall be allocated among all other agencies in the same manner and within the same factors as the initial assessment calculation.

Source Note: The provisions of this §251.507 adopted to be effective October 8, 2001, 26 TexReg 7877; amended to be effective November 17, 2002, 27 TexReg 10600