NOVEMBER 1, 2008   
Re: Annual Report for 2008   


As of August 31, 2008, the Georgia Self-Insurers Guaranty Trust Fund (“Fund”) has continued payment of workers’ compensation benefits, medical expenses, and rehabilitation services to nearly 400 injured workers and their dependents. Approximately $24,456,625 of benefits have been paid to these workers or to their dependents on their behalf. The Fund has recovered over $7,825,925 in reimbursement from the Subsequent Injury Trust Fund, bankruptcy courts, and excess insurance carriers. These funds have been recovered as a result of claim efforts by the Fund management to seek all remedies and relief available to it in mitigation of the cost of servicing the claims of insolvent members.

The Fund consists of approximately 224 active members. This membership figure has remained relatively constant for the last five (5) years.

To date, fifty-five (55) members of the Fund have become insolvent since 1991. In 30 of these insolvencies, the Fund has been called upon to take over the obligation of the employers. Over 325 of the open claims have been resolved, and we are currently servicing only 56 lost-time cases. Of the 30 bankruptcies, security being held by the Fund was adequate to respond to liabilities in all but ten (10) employer bankruptcies.

As previously reported, in July 2007, the Fund was ordered by the State Board of Workers’ Compensation to claim security and commence payment of claims pending against a member who was in default on previous Board Orders and compensation awards. At this time, the Fund is administering twenty-one (21) lost-time claims for this employer and paying benefits from their forfeited collateral.

The cumulative total security posted by all self-insured employers is currently $575,773,341. The Trustees continue to reevaluate security requirements on an annual basis with decreases or increases where appropriate. It should be noted that the workers’ compensation rate was $175.00 per week for temporary total disability when the GSIGTF was established in 1990. There has been no change in the statutory assessment from 1990 to the present. The weekly compensation rate was recently increased to $500.00 per week. The adequacy of the annual assessment is currently under review.

Based on further study, the security formula has also been revised to provide that when the formula reveals the need to increase security by $500,000 or more, an employer’s security requirement will be increased, even if it represents less than a twenty percent (20%) increase. Additionally, the security formula was revised to permit a decrease in security if the formula or employer’s reserves decreased by $350,000 or more, even if the decrease represented less than a twenty percent (20%) variance.

Members should be reminded that the Trustees have decided 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 not be named on the security or excess policy.

As of today, the Self-Insurers Guaranty Trust Fund’s total net worth is approximately $2.5 million.

For more information about the Georgia Self-Insurers Guaranty Trust Fund, please visit our 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

Mark G. Whyte
John Wieland Homes and Neighborhood, Inc.

Sam Storey 
Wellstar Health System

2141994 /1