The board of directors of the Arizona School Risk Retention Trust, Inc. (the Trust), has approved continuation of the Trust Loyalty Credit (TLC) Program for 2020/2021. Since the TLC began in 2010, the Trust has returned $42.8 million to members.
The 2020/2021 TLC program was simplified because district staff are facing many new challenges during the pandemic, and time to participate in additional activities is scarce. While we hope this adjustment to the program for 2020/2021 is welcome, we are excited to reintegrate risk management activities into the TLC next year. We believe these activities are essential in keeping member losses to a minimum.
For this year’s program, members have the opportunity to receive up to 4 percent of their 2020/2021 contribution as a loyalty credit. Receipt of the credit can occur through: (1) deduction from the member’s contribution; (2) check; (3) deposit to a pre-paid account; or (4) deposit to a Trust Investment Pool account.
This year, as in previous years, there are two TLC tiers. To qualify for Tier 2, however, you must first qualify for Tier 1. (In the past, you could qualify for the tiers independently of each other.)
Tier qualifications are as follows:
Tier 1 (2%)
To be eligible for the loyalty credit and earn 2 percent credit back under Tier 1, the district must:
- maintain membership in the Trust for three consecutive years (2018/2019, 2019/2020, and 2020/2021);
- participate in the Trust core coverages (both property and liability);
- pay the district’s 2020/2021 contribution prior to September 30, 2020; and
- continue membership for the 2021/2022 policy year.
Tier 2 (2%)
To earn an additional 2 percent credit under Tier 2, the district must maintain an average three-year loss ratio of 80 percent or less for the period from July 1, 2018 through May 31, 2021.