The California JPIA recently completed the annual Retrospective Deposit Calculation ("Retro") for the Liability and Workers' Compensation programs. The Retro has been reviewed and adopted by the Executive Committee at their meeting on February 27, 2008. These calculations are used to determine the refund or additional payment for prior years and the deposit for the coming year. The refund/additional payment is then spread over eight years to help smooth cash flow spikes caused by alternating "good years" and "bad years." This smoothing is referred to as the rolling retro. Rolling retro deposit invoices will be mailed in June, dated July 1, 2008, and due July 1, 2008. Rolling retro refunds will be mailed on July 1, 2008.  Penalties for non-payment will accrue after July 21, 2008.

The primary deposit calculation for the 2008-2009 coverage period is also completed at this time of year. Primary deposit invoices will also be mailed in June, dated July 1, 2008, and due by July 1, 2008.  Penalties for non-payment will accrue after July 21, 2008.

Also included is a summary of the rolling retro and primary deposit computation. The amounts shown in parenthesis are refunds the California JPIA will pay to members and conversely the amounts not in parenthesis are amounts the members will pay to the California JPIA. The rolling retro listed on the attachment is the amount to be refunded or due this July and the amount listed has already been divided by eight.