December 1, 2011


Re:  Annual Report for 2011

As of September 30, 2011, the Georgia Self-Insurers Guaranty Trust Fund (“Fund”) has paid workers’ compensation benefits, medical expenses, and rehabilitation services to over 450 injured workers and their dependents. Approximately $37,619,059 in benefits have been paid to these workers or to their dependents on their behalf. The Fund has recovered over $12,600,965 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 filings of General Motors and Fleetwood Homes in 2009, the Fund took over the responsibility of Columbus Foundry’s claims in 2010.

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

To date, sixty-eight (68) members of the Fund have become insolvent since 1991. In 37 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 37 bankruptcies in which claims have been administered by the Fund, security was adequate to respond to liabilities in all but twelve (12) employer bankruptcies.


As noted in last year’s annual report, the workers’ compensation rate was $175.00 per week for temporary total disability when the GSIGTF was established in 1990. The current weekly compensation rate is $500.00 per week for TTD. In light of the increase in benefits and the cost of medical treatment, the Legislature evaluated the adequacy of the annual assessment, which is required by statute, and voted to increase it. Effective July 1, 2010, the annual assessment was modified so that annual assessment now ranges from a minimum of $2,000 to a maximum of $8,000 per year depending on disbursements made for both indemnity and medical paid during the previous year. The new rate of assessment is applicable to data reported on the 2011 Membership Information Update Form, and subsequent years thereafter. It is important to note that this is the first increase in assessment since the Fund was established in 1991, despite the tripling of benefits.

Members should be reminded that the Trustees have determined that all security and excess policies should be issued in the name of the member and also add the term “and self-insured subsidiaries and affiliates, if any.” This change will eliminate the risk that a subsidiary or affiliate might be omitted on the security or excess policy. Also please be reminded that the Fund should be named as a loss payee and named insured on all excess policies and the required bankruptcy endorsement must be part of the policy. Please call if you have questions on this issue.

Currently, we are happy to report that the Self-Insurers Guaranty Trust Fund’s total net worth has increased to approximately $4.625 million net of all liabilities and we have one of the few solvent guaranty funds in the country. The Trustees remain confident we have one of the most efficient and employer-friendly Funds in the country.

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

Chris H. Hunt

Georgia Power Company

Sam Storey

Wellstar Health System

Brenda Ratcliff

Shaw Industries Group, Inc.

Elizabeth Bailey Waffle House, Inc.