For over 35 years the Trust has featured a maximum payroll cap of $50,000 per employee. For polices effective January 1, 2018 forward, the cap will be increased to $75,000 bringing it more in line with current salaries and wages. This change will have minimal or no impact for most Trust members.
Over the past two years our actuaries have been capturing the full payroll of each capped employee from the audit documents and are lowering our 2018 rates to neutralize the impact of the higher cap. We expect this change to result in a net zero sum gain on the entire book of Trust business and will ensure little to no premium impact on most members as a result of this change.
Please remember to adjust your 2018 renewal payroll projections to reflect the $75,000 cap. Please contact your broker if you have any questions.