December 1, 2012


Re:  Annual Report for 2012

As of October 31, 2012, the Georgia Self-Insurers Guaranty Trust Fund (“Fund”) has paid workers’ compensation benefits, medical expenses, and rehabilitation services to over 460 injured workers and their dependents. Approximately $48,625,599 in benefits have been paid to these workers or to their dependents on their behalf. The Fund has recovered over $18,520,096 in reimbursement from the Subsequent Injury Trust Fund, bankruptcy courts, and excess insurance carriers. These funds have been recovered through efforts of the Trustees and Fund management to seek all remedies and relief available in mitigation of the cost of servicing the claims of insolvent members. Since the bankruptcy filing by Columbus Foundry in 2010, the Fund took over the responsibility of the claims for Calfee Company of Dalton, Inc. and Metromedia International Group, Inc. earlier this year.

The Fund presently has 207 active members. This membership figure has remained relatively constant for the last several years.

To date, seventy members of the Fund have become insolvent since 1991. In 38 of these insolvencies, the Fund has been called upon to take over the obligation of the employer. Over 400 claims have been resolved. We are currently servicing 80 lost-time cases, thirty (30) of which are for General Motors Corporation, which filed for bankruptcy protection in June 2009. Of the 38 bankruptcies in which claims have been administered by the Fund, security was adequate to respond to liabilities in all but twelve (12) employer bankruptcies.


The focus of the Fund in 2012 has been evaluation of methods and procedures for increasing efficiency in operation and service to our members. The result of this study is the implementation of the initiative to utilize the internet as the vehicle for our members completing their annual Member Information Update Form (MIUF) electronically. Successful implementation of this project will result in easier and more accurate collection and sorting of data and provide Fund management with additional analytical tools.

The legislative changes enacted last year have had the desired significant, positive impact on the Fund’s cash flow and asset growth. At the present time, no additional changes in the assessment formula or mechanism are anticipated.

We are happy to report that the Georgia Self-Insurers Guaranty Trust Fund’s total net worth has increased to approximately $9.5 million, net of all liabilities, and Georgia has one of the most financially sound guaranty funds in the country. The Trustees continue to strive to operate the Fund efficiently and are receptive to employer input.

Members should be reminded that all security and excess policies should be issued in the name of the member and include the term “and self-insured subsidiaries and affiliates, if any.” This change eliminates the risk of omitting a subsidiary or affiliate from the security or excess policy. Please also remember that the Fund should be named as a loss payee and named insured on all excess policies and the required bankruptcy endorsement should be included as part of the policy. Please call if you have any questions on these issues.

For more information about the Georgia Self-Insurers Guaranty Trust Fund, please visit our newly re-designed website at

As in the past, the members of the Board of Trustees appreciate your cooperation and participation in the continued operation and funding of this necessary endeavor.


Sheldon Fram, Chairman

C. W. Matthews Contracting, Inc.

Tim Holt, Secretary

Brown Industries, Inc.

Dr. Frank McElroy, Jr.

Presbyterian Homes of Georgia

Sam Storey

Wellstar Health System

Brenda Ratcliff

Shaw Industries Group, Inc.

Elizabeth Bailey

Waffle House, Inc.