2020 ANNUAL REPORT
PIRMA
Pennsylvania Intergovernmental Risk Management Association
www.pirma.org
PENNSYLVANIA'S LARGEST MUNICIPAL RISK POOL ABOUT PIRMA
PIRMA’s Commitment PIRMA WAS FORMED AS Pennsylvania Intergovernmental Risk A LOCAL GOVERNMENT Management Association (PIRMA) is RISK-SHARING POOL a group self-insurance pool that offers TO PROVIDE RISK comprehensive liability and property coverages to Pennsylvania public MANAGEMENT SERVICES entities. The program’s philosophy differs AND RISK SHARING from that of a traditional insurance FACILITIES TO ITS program in that PIRMA is owned by its membership and serves only the MEMBERS AND TO interests of its members. PIRMA has PROVIDE THEM WITH grown steadily since its formation in A COMPREHENSIVE 1987 and is over 600 members strong, LIABILITY AND making it the largest public entity pool in Pennsylvania. PROPERTY COVERAGE PROGRAM AT A Each PIRMA member is provided with $10,000,000 liability coverage limits. COMPETITIVE COST. Broad employment practices, pollution, and punitive damage coverages protect PIRMA IS OWNED BY the Pool’s members in areas where ITS MEMBERSHIP. THE insurance carriers leave significant gaps. PROGRAM’S PHILOSOPHY
In addition, PIRMA members receive DIFFERS FROM THAT specialized Loss Control and Claim OF A TRADITIONAL services. The Loss Control Division works INSURANCE PROGRAM with the members to decrease losses through the identification and analysis IN THAT THE POOL IS of risk and the implementation of loss OWNED BY AND SERVES control measures. PIRMA provides ONLY THE INTERESTS OF personalized Loss Control services, resources, training, and education to the ITS MEMBERS. member’s public officials and employees. SINCE ITS FORMATION The Claims Division provides an outstanding hands-on approach utilizing IN 1987, PIRMA HAS MET extremely experienced staff to assist THESE GOALS AND IS the members. PIRMA’s claim staff is COMMITTED TO THEIR committed to excellent customer service while providing fair claim settlements. As CONTINUATION. a result of PIRMA and its value added services, Pennsylvania’s public entities and communities are safer for everyone. 2 PIRMA 2020 Annual Report PIRMA
Pennsylvania Intergovernmental Risk Management Association
TABLE OF CONTENTS
2 PIRMA’s Commitment
2 About PIRMA
4 Board of Directors
5 A Message from the Chair
6 A Message from the General Counsel
7 Administrator’s Report
8 Marketing Report
9 PIRMA Membership
13 Financial Stability
14 Financial Overview
15 Revenue, Expenses, and Changes in Net Assets
16 Service Providers
19 Past Board Members
PIRMA 2020 Annual Report 3 PIRMA’S 2020 BOARD OF DIRECTORS
Ms. Kimberly Moretti Mr. Daniel Anderson Ms. Shannon Berkey Chair Vice Chair Secretary East Pikeland Township, Indiana Township, Danville Borough, Chester County Allegheny County Montour County
Mr. Nicholas Hiriak Ms. Betty Ann Moyer Upper Merion Township, Danville Borough Montgomery County Municipal Authority, Montour County
Ms. Elizabeth Randzin Mr. Robert Softcheck Wallace Township, North Fayette County Chester County Municipal Authority
4 PIRMA 2020 Annual Report A MESSAGE FROM THE CHAIR
reetings PIRMA Members. g2020 was an unprecedented year in many ways. With contentious elections and the COVID Kimberly Moretti Pandemic, we were all inundated with events Chair happening on the national and global stage which PIRMA Board of Directors seemed out of our control. Due to COVID, those of us in local government became “essential personnel” and had to change the way in which we conduct municipal government operations.
PIRMA stepped up to the challenge presented by the pandemic. We recognized that COVID may have had a negative financial impact on local government and approved a 5% rate reduction on 2021 renewals of liability coverage. Because PIRMA is owned and • Loss Control Grants. While not new, this year operated by its members, we are able to give back PIRMA has increased the amount of funds at a time when our members need it the most. being offered in the grant program. A record 31 members submitted grant applications in 2020 As the primary local government risk sharing pool with awards being made to Tioga Township in Pennsylvania, PIRMA strives to be on the leading (Tioga County), Upper Yoder Township Authority edge in terms of services offered to our members. (Cambria County), New Milford Borough Throughout 2020, the PIRMA Board continued to (Susquehanna County) and Larksville Borough conduct business through virtual meetings where (Luzerne County). Each municipality will receive we approved new programs and improved existing up to $5,000 in grant funds to supplement a programs for our membership, including: project in their loss control program.
• PIRMA Legal Access Program. With this new • The PIRMA Loss Control and Resource eLibrary program, all members are eligible for up to 120 continues to expand with thousands of resources minutes of free legal consultation annually on in a variety of formats to assist members. a wide range of matters including employment The eLibrary provides members with access issues, wage and hour questions, zoning and to online safety training courses, streamed land use matters, law enforcement civil liability videos, employment and HR forms, policies and issues, open records and open meetings laws, procedures, as well as webinars and Public Entity public works liability issues, contract review and University online courses. recommendations, governmental immunities and much more. I encourage you to visit the PIRMA website to learn more about these programs. As we attempt to • The Third Thursday Webinar Series provides return to “normal” operations in these unsettling educational opportunities on hot topics to fit times, you can feel confident that PIRMA will member needs. The webinars are presented continue to offer you the highest quality of attention by attorneys from Siana Law and cover topics and service upon which you have come to rely. ranging from personnel issues, to fiscal planning, to cyber crime. Watch for PIRMA e-blasts with information on how to participate.
PIRMA 2020 Annual Report 5 A MESSAGE FROM THE GENERAL COUNSEL
Stephen V. Siana IRMA continues to bolster its loss control and General Counsel risk management efforts by enhancing its online presources. Recent postings have included information and guidance relative to the COVID-19 Pandemic (and the variety of ways that it has impacted the regulatory environment, personnel management and other operations of the members). PIRMA’s legal team continues to conduct webinars, provide training, and publish materials providing content and guidance on this evolving situation.
PIRMA’s defense counsel have also presented at The coming year will undoubtedly present many educational seminars to public officials and municipal new challenges and opportunities for PIRMA and employees through local, county and statewide our member municipalities. The issues arising from municipal associations, including the Pennsylvania the COVID-19 Pandemic will continue to impact State Association of Boroughs and the Pennsylvania municipalities and their employees. Separately, national State Association of Township Supervisors. These news events have increased sensitivity to claims of bias programs have continued (if not expanded) during the and use of force incidents, prompting calls for legislative pandemic through the use of remote webinar programs reform and resulting in a stigma faced by municipal and the need for officials to react quickly to these police departments. Claimants are also continuing in unprecedented times. 2021 has also seen the rollout of their efforts to abuse the Right to Know Act process to PIRMA’s Third Thursday sessions and the Legal Access further their claims and an increase in state-mandated program. Both set PIRMA apart, demonstrating its requirements has increased the financial challenges proactive approach to risk management and protecting facing municipalities. PIRMA’s defense counsel continue member interests. These educational programs to put forth formidable, member-driven defenses and promote loss control by sensitizing officials on the provide knowledgeable representation to effectively various risks and pitfalls associated with their day- meet these challenges. to-day operations. I encourage you to attend these programs; the education they afford will be a significant benefit to you and assist you in fulfilling your municipal roles. PIRMA’s service providers are happy to provide assistance, training, risk management and loss control training.
6 PIRMA 2020 Annual Report ADMINISTRATOR’S REPORT
of Directors launched a new initiative, the PIRMA Legal Sedgwick Access Program. Beginning January 1, 2021, PIRMA Administrative Team members are eligible for up to 120 minutes of free legal consultation annually on a wide range of matters including employment issues, wage and hour questions, zoning and land use matters, law enforcement civil liability issues, open records and open meetings laws, public works liability issues, contract review and recommendations, governmental immunities and much more.
To further assist its members in addressing the pressing and emerging issues facing its members, PIRMA will now offer its members monthly webinars. Beginning 2020 – A year we will never forget! January 2021, and on the third Thursday of each month thereafter, PIRMA will host a Third Thursday webinar Year after year, PIRMA looks for new ways to provide its on issues such as new requirements relating to law members with expanded coverages, new resources and enforcement policies and procedures, the latest cyber unparalleled member services to ensure PIRMA remains security threat or the changing employment landscape the leading insurance alternative for municipalities in during the pandemic. These webinars are virtual Pennsylvania. The COVID-19 Pandemic presented educational sessions that will address a wide range of challenges in 2020 unlike any PIRMA members have hot topics throughout the year, with an interactive Q&A experienced before. And, while the COVID-19 Pandemic session to follow. impacted how PIRMA members served their residents, it also impacted the many ways PIRMA serves its New Resources members. PIRMA also provided its members with relevant and COVID-19 Relief Rate Reduction timely risk control resources to assist members as they navigated the pandemic. Best practices, waivers, PIRMA’s philosophy differs from that of a traditional articles, assistance with grants, and guidelines for insurance program in that PIRMA is owned by its returning equipment to use after the shutdown were members and serves only the interests of its members. just some of the documents added to the Resource In these most challenging of times, PIRMA looked for eLibrary. Online training modules covering topics such new ways to serve its members. Therefore, beginning as contact tracing, pandemic response, and return- January 1, 2021, members renewing their membership in to-work, were offered. On the human resources front, PIRMA will receive a 5% rate reduction on their liability a number of federal laws were impacted by pandemic contribution. Because it is owned and operated by its guidelines such as the Americans with Disabilities members, PIRMA is able to give back to its members at a Act and the Family and Medical Leave Act; webinars, time when they need it the most. seminars, articles and best practices addressing these New Member Services and other laws were made available to help guide PIRMA members through these unprecedented times. PIRMA regularly reviews the services it provides and looks for opportunities to enhance and expand the Sedgwick is honored to have served as PIRMA’s benefits offered to its members. PIRMA is mindful that its administrator for the past 33 years and would like to members were facing unique legal challenges as a result thank PIRMA members for their continued participation of the pandemic. In order to assist members with those and dedication to the program. We look forward to legal issues, or on an existing aspect of governmental serving you in the years to come as together we create operations or general municipal law, the PIRMA Board safer communities in Pennsylvania.
PIRMA 2020 Annual Report 7 MARKETING REPORT
ince 1987, H.A. Thomson has had the privilege H.A. Thomson continues to employ a highly experienced of marketing and servicing the largest liability staff with leading insurance industry educational Sand risk management public entity pool in achievements. This includes multiple staff members Pennsylvania. The growth and success of the pool can that hold various prominent designations including: be credited to the dedication of all parties involved; from Chartered Property and Casualty Underwriter (CPCU), the membership itself for their loyalty to the program, Certified Insurance Counselor (CIC), Associate in Risk the various service providers for their expertise, and Management (ARM), and Certified Insurance Services to the Board of Directors for their commitment to Representative (CISR). Our commitment to education protecting the membership through thoughtful decision- allows us to stay on top of developing issues such as making. We are proud to be a part of this successful and cyber exposures and drone use. dedicated program. H.A. Thomson would like to thank the membership and As Pennsylvania’s largest provider of municipal the Board of Directors for their long-lasting trust and be coverage, H.A. Thomson has the resources to offer assured that they will continue to receive the excellent the PIRMA membership a full range of services service they have grown to expect. including coverage form analysis, contract review, loss control assessments, safety inspections, updates on H. A. Thomson Company the municipal legal environment, risk management Service/Marketing/Loss Control Team reviews, and more.
8 PIRMA 2020 Annual Report PIRMA’S MEMBERSHIP
Baden Borough Volunteer Fire Co. Hilltown Township Water & Sewer Authority Economy Borough Morrisville Borough Economy Borough Municipal Authority Morrisville Municipal Authority Fallston Borough Nockamixon Township We thank the Franklin Township Pennridge Regional Police Department Hopewell Township Telford Borough following Members Independence Township Telford Borough Authority Ohioville Borough Wrightstown Township of PIRMA for their West Mayfield Borough Yardley Borough Sewer Authority continued support: Bedford County Butler County Hyndman Borough Municipal Authority Brady Township Center Township Berks County Clay Township Berks County Emergency Response Team Franklin Township Bern Township Municipal Code Association Bern Township Municipal Authority Valencia Borough Adams County Bernville Borough Washington Township Abbottstown Borough & Municipal Authority Brecknock Township Bendersville Borough BWB Emergency Management Agency Cambria County Cumberland Township Laureldale Borough Ashville Borough Cumberland Township Authority Lower Alsace Township Brownstown Borough Eastern Adams Reg. Police Department Lyons Borough & Municipal Authority Chest Township Fairfield Borough Lyons Borough Municipal Authority Dean Township Fairfield Municipal Authority Maidencreek Township East Conemaugh Borough Freedom Township Maidencreek Township Authority East Hills Recreation Commission Hamilton Township North Heidelberg Township Franklin Borough Latimore Township Northern Berks Regional Police Gallitzen Township Liberty Township Oley Township Gallitzin Borough & Water Authority Possum Valley Sewer Authority Ontelaunee Township Gallitzin Borough Sewer Authority York Springs Borough & Municipal Authority Pike Township Middle Taylor Township Ruscombmanor Township Southmont Borough Allegheny County St. Lawrence Borough Upper Yoder Township Avalon Borough Sinking Spring Borough & Authority Upper Yoder Township Municipal Authority Avonworth Municipal Authority Union Township West Hills Regional Police Dept Bradford Woods Borough Union Township Municipal Authority Crafton Borough Upper Tulpehocken Township Cameron County Emsworth Borough Washingtown Township Municipal Authority Emporium Borough Fawn Township Windsor Township Fawn Township Sewer Authority Wyomissing Valley Joint Municipal Authority Carbon County Indiana Township Banks Township Marshall Township Blair County Beaver Meadows Borough Marshall Township Sanitary Authority Blair Region Code Administration Coaldale-Lansford-Summit Hill Sewer Northern Regional Police Department Committee Authority Northern Tier Regional Library Association Blair Township Franklin Township Richland Township Catharine Township Lausanne Township Rosslyn Farms Borough Frankstown Township Mahoning Township West Elizabeth Borough Frankstown Township Sewer Authority Nesquehoning Borough Wexford Vol. Fire. Co. Huston Township Parryville Borough Snyder Township Penn Forest Township Armstrong County Taylor Township Towamensing Township Bradys Bend Township Woodbury Township Elderton Borough Centre County Ford Cliff Borough Bradford County Centre Hall - Potter Sewer Authority Manorville Borough Monroe Township Curtin Township Sugarcreek Township Wells Township Huston Township Authority Worthington Borough Milesburg Borough & Authority Worthington-W. Franklin Joint Parks Bucks County Mountaintop Area Municipal Authority Worthington-W. Franklin Jt. Mun Auth Bristol Borough Mountaintop Regional Water Authority Bristol Recreation Authority Penn Township Beaver County Central Bucks Emergency Response Team Snow Shoe Borough Baden Borough Doylestown Township Union Township Baden Borough Municipal Authority Doylestown Township Municipal Authority Continued on next page PIRMA 2020 Annual Report 9 Continued from previous page Columbia County Fayette County Chester County Benton Borough & Municipal Water & Belle Vernon Borough Atglen Borough & Sewer Authority Sewer Authority Brownsville Township Birmingham Township Briar Creek Borough Newell Municipal Authority Chest-mont Emergency Response Team Catawissa Borough North Fayette County Municipal Authority Downingtown Area Regional Authority Madison Township & Authority Southwest Regional Police Board East Bradford Township Millville Borough Springhill Township East Fallowfield Township North Centre Township East Nantmeal Township Pine Township Forest County East Nottingham Township Green Township East Pikeland Township Crawford County Elk Township Bloomfield Township Franklin County Elverson Borough Bloomfield Township Sewer Authority Fannett Township Franklin Township Cochranton Borough Metal Township Honey Brook Borough Authority Conneaut Lake Municipal Authority Mont Alto Borough Honeybrook Township Hydetown Borough St. Thomas Township Municipal Authority Kennett Area Park Authority Linesville Borough & Municipal Authority Warren Township Kennett Township Meadville Area Recreation Authority Londonderry Township North & South Shenango Joint Municipal Fulton County Lower Oxford Township Authority Bethel Township Sewage Authority Malvern Borough Northwest Crawford County Sewer Thompson Township New London Township Authority North Coventry Township Rome Township Greene County Northwestern Chester County Municipal Townville Borough Greensboro Borough Authority West Fallowfield Township Monongahela Township Oxford Area Recreation Authority West Shenango Township Penn Township Sadsbury Township Cumberland County Huntingdon County Birmingham Borough Sadsburyville Fire Co. No. 1 Cooke Township Cassville Borough & Authority Spring City Borough Penn Township Miller Township Thornbury Township Shippensburg Township Oneida Township Upper Oxford Township Southampton Township Petersburg Borough Valley Forge Sewer Authority Upper Frankford Township Smithfield Township Wallace Township & Sewer Authority Upper Frankford Volunteer Fire Company Walker Township & Walker Township West Bradford Township West Shore Regional Police West Brandywine Township Municipal Authority West Brandywine Township Mun. Auth Dauphin County West Caln Township Indiana County South Hanover Township & Authority West Grove Borough Armstrong Township Steelton Borough West Marlboro Township Cherry Tree Borough Williams Township West Nantmeal Township Clymer Borough West Pikeland Township Glen Campbell Borough West Whiteland Township Delaware County North Mahoning Township Westtown East Goshen Police Department Chaddsford Township Sewer Authority Westtown Township Delaware County Housing Authority Jefferson County Rutledge Borough Big Run Area Municipal Authority Clarion County Eldred Township Brady Township Elk County Washington Township Ridgway Borough Winslow Township Clearfield County Ridgway Township Municipal Authority B.C.I. Municipal Authority Juniata County Burnside Borough & Water Authority Erie County Delaware Township Chest Township Albion Borough & Authority Fermanagh Township Greenwood Township Amity Township Greenwood Twp Jordan Township Concord Township Mifflin Borough Morris - Cooper Regional Police Conelway Regional Emergency Mgmt Mifflintown Borough Department Agency Milford Township Elgin Borough Port Royal Borough Clinton County Girard Township Port Royal Borough Municipal Authority Haborcreek Township Sewer Authority Bald Eagle Township & Authority Susquehanna Township Union City Borough Municipal Authority Mill Hall Borough Thompsontown Borough Union Township Noyes Township Twin Boroughs Sanitary Authority Waterford Borough Porter Township Municipal Authority Walker Township Wattsburg Borough Porter Township Wayne Township & Wayne Township Renovo Borough Lackawanna County Sewer Authority South Renovo Borough North Abington Township Newton Township Ransom Township Springbrook Township Sewer Authority 10 PIRMA 2020 Annual Report Lancaster County Larksville Borough Price Township Bainbridge Water Authority Larksville Borough Sewer Authority Stroud Region Open Space & Rec Brecknock Township Luzerne Borough Commission Christiana Borough & Christiana Borough New Columbus Borough West End Park & Open Space Commission Authority Rice Township Colerain Township Shickshinny Borough Montgomery County Columbia Borough & Authority Twin County Joint Municipal Authority Bryn Athyn Borough Conoy Township Union Township Collegeville Borough Donegal-Elizabethtown Area Appeals Collegeville Trappe Joint Public Works Board Lycoming County Department Drumore Township Armstrong Township Collegeville Trappe Municipal Authority East Donegal Sewer Authority Bastress Township Green Lane-Marlbrough Joint Authority East Donegal Township Cogan House Township Limerick Township Eden Township Franklin Township Limerick Township Municipal Authority Elizabeth Township Gamble Township Lower Pottsgrove Sewer Authority Elizabethtown Area Park Authority Hughesville-Wolf Authority Lower Pottsgrove Township Elizabethtown Borough Jordan Township Pennsburg Borough Elizabethtown Regional Sewer Authority Lewis Township Perkiomen Municipal Authority Ephrata Area Joint Authority Muncy Creek Township Perkiomen Township Little Britain Township Muncy Township & Muncy Township Water Pottstown Borough & Authority Marietta-Donegal Joint Authority Authority Rockledge Borough Maytown - E. Donegal Township Fire Co. Susquehanna Township Royersford Borough Millersville Borough Washington Township Schwenksville Borough Mount Joy Township Washington Township Volunteer Fire Co. Trappe Borough Northwest Regional Lancaster County Wolf Township Upper Hanover Authority Police Department Woodward Township Upper Merion Township Pequea Township Upper Pottsgrove Township Sadsbury Township Municipal Authority McKean County Upper Providence Township & Sewer Strasburg Borough & Authority Ceres Township Authority Susquehanna Regional Police Department Hamilton Township & Ludlow VFC Upper Salford Township Terre Hill Borough Hamlin Township West Conshohocken Borough & Municipal Weaverland Valley Fire Department Keating Township Authority West Donegal Township Lafayette Township West Pottsgrove Township West Lampeter Township Lafayette Township Sewer Authority Otto Township Montour County Lawrence County Port Allegany Area Recreation Authority Cooper Twp Municipal Authority Bessemer Borough & Authority Port Allegany Borough & Municipal Danville Borough Enon Valley Borough Authority Danville Borough Municipal Authority Hickory Township Park Authority Sergeant Township Limestone Township Lawrence County Land Bank Mahoning Township Little Beaver Township Mercer County Mayberry Township New Beaver Borough Coolspring, Jackson, Lake Latonka Joint Montour County COG Pulaski Township Municipal Authority Authority Montour Area Recreation Commission Slippery Rock Township Fairview Township Northern Montour Reg. Planning Comm. Washington Township Hempfield Township Valley Township Mun. Authority Wilmington Township Jackson Township Valley Township Wilmington Township Sewer Authority Liberty Township Washingtonville Borough Perry Township Washingtonville Borough Municipal Lebanon County Sandy Lake Borough Authority Heidelberg Township Sandy Lake Township Jonestown Borough Sheakleyville Borough Northampton County Millcreek Township Wheatland Borough Allen Township Mt. Gretna Borough & Authority Bath Borough Northern Lebanon Co. Authority Mifflin County Chapman Borough Palmyra Area Recreation & Park Brown Township Municipal Authority Colonial Regional Police Department Commission Decatur Township First Regional Compost Authority South Annville Township & Authority McVeytown Borough Forks Township Union Township Menno Township Glendon Borough West Cornwall Township Mifflin County Regional Police Nazareth Borough Municipal Authority Mifflin County Solid Waste Authority Walnutport Borough Lehigh County Municipal Authority of the Borough of Wilson Borough Coopersburg Borough & Authority Lewistown Wind Gap Municipal Authority Lehigh County Authority Union Township Municipal Authority Wayne Township Northumberland County Luzerne County East Cameron Township Bear Creek Village Borough Monroe County East Chillisquaque Township Black Creek Township Eldred Township Jordan Township Dorrance Township Paradise Township Continued on next page Hollenback Township Pocono Jackson Jt. Water Authority PIRMA 2020 Annual Report 11 Continued from previous page West Brunswick Township Morris Township (Northumberland County) West Penn Township R.E.S. Regional Police Department Ralpho Township Municipal Authority Roscoe Borough Rush Township Snyder County South Franklin Township Upper Mahanoy Township Adams Township South Strabane Township Authority West Chillesquaque Township Adams Township Municipal Authority Speers Borough Zerbe Township Beaver Township West Pike Run Township Kreamer Municipal Authority Perry County Wayne County Howe Township Somerset County Buckingham Township Howe Township Municipal Authority Indian Lake Borough Cherry Ridge Township Liverpool Township Clinton Township New Buffalo Borough Sullivan County Dyberry Township Rye Township Hawley Area Authority Eagles Mere Borough & Authority Tyrone Township Mt. Pleasant Township Laporte Township South Canaan Township Pike County Susquehanna County Waymart Borough Dingman Township Great Bend Borough Lehman Township Jackson Township Westmoreland County Milford Borough East Vandergrift Borough Montrose Municipal Authority Milford Borough Authority Ligonier Township Municipal Authority New Milford Borough Milford Township Penn Trafford Area Rec. Commission New Milford Municipal Authority Porter Township Oakland Borough Shohola Township Thompson Borough Wyoming County Tunkhannock Borough Municipal Authority Potter County Tioga County Allegany Township Deerfield Township York County Homer Township Elk Township Crossroads Borough Oswayo Borough Elkland Borough Dallastown Borough Oswayo Township Morris Township Dallastown Yoe Water Authority Sharon Township Tioga Township Dover Borough Summit Township East Hopewell Township Union County Eastern York County Emergency Management Agency Schuylkill County Buffalo Valley Recreation Authority Auburn Borough Eastern York County Sewer Authority Gregg Township Municipal Authority Auburn Municipal Authority Fawn Township Mifflinburg Borough & Municipal Authority Blythe Solid Waste Authority Franklintown Borough & Municipal Authority New Berlin Borough Branch Township Glen Rock Borough New Berlin Municipal Authority Butler Township Hellam Township Seda-Cog Joint Rail Authority City of Pottsville Hopewell Area Park & Recreation Board City of Pottsville Hospital Authority Hopewell Township Coaldale Borough Venango County Jacobus Borough Allegheny Township Cressona Borough Lewisberry Area Joint Authority Cressona Borough Authority Lewisberry Borough Deer Lake Borough Warren County Lower Chanceford Township Delano Township Cherry Grove Township Manchester Township & Municipal Authority East Brunswick Township Columbus Township & Authority Manheim Township Frailey Township Limestone Township New Freedom Borough & Authority Hegins Township Southwest Township North Codorus Township Authority & VFC Mahanoy City Sewer Authority Sugar Grove Borough North Hopewell Township Mechanicsville Borough Sugar Grove Township Red Lion Borough Mount Carbon Borough Red Lion Municipal Authority New Philadelphia Borough Washington County Shrewsbury Township Palo Alto Borough Beallsville Borough Southern Police Commission Pine Grove Borough California Borough Southwestern Regional Police Department Port Clinton Borough Carroll Township Springfield Township York County Sewer Reilly Township Claysville Borough Authority Ringtown Borough & Municipal Authority Deemston Borough Springfield Township Rush Township Donegal Township West Manchester Township & Sewer Schuylkill Township Dunlevy Borough Authority Shenandoah Borough East Finley Township West Manchester Water Authority Shenandoah Borough Municipal Authority East Washington Borough West Shore Recreation Commission South Manheim Township Elco Borough Tremont Borough Houston Borough Tremont Township Long Branch Borough Walker Township Mid-Mon Valley Regional Planning & Wayne Township Zoning Comm Wayne Township Municipal Authority Mid-Mon Valley Water Pollution Authority
12 PIRMA 2020 Annual Report FINANCIAL STABILITY
Evaluation and Oversight
PIRMA has contracted with two firms to obtain independent analysis and audit of its financial operations.
Crowe LLP prepares an audited financial report on an annual basis and, in 2020, provided an unqualified opinion of the Pool’s financial statements.
Demotech, Inc. an independent financial analysis services firm, provides a Financial Stability Rating® (FSR). PIRMA’s FSR is based on four specific areas of analysis: financial stability, loss reserves, administration, and overall performance. For 2020 Demotech has, for the thirty first consecutive year, assigned PIRMA the highest rating of AAA (unsurpassed) in each area. Membership Stability and Growth
Review by independent organizations such as Crowe LLP and Demotech is an important tool to analyze the financial integrity of a Pool such as PIRMA, but it is also appropriate to evaluate a Pool’s success by its growth and maintenance of membership. Since its inception in 1987, the Pool has enjoyed both steady growth and loyalty from its members, that totaled 611 at the end of 2020. Reinsurance Adequate and appropriate reinsurance is essential to protect the financial integrity of a group self-insurance program. PIRMA reinsures its casualty claims through APEEP, Genesis Reinsurance and Markel Global Reinsurance. Property and vehicle losses are reinsured through APEEP, Travelers and Travelers BoilerRe.
PIRMA 2020 Annual Report 13 FINANCIAL OVERVIEW
2020 2019 Assets Cash and cash equivalents $ 2,230,642 $ 2,398,598 Investments, at fair value 27,068,071 25,361,113 Restricted assets 1,000,000 1,000,000 Member contributions to be billed in the future 19,857,718 21,217,079 Other assets 1,021,571 914,239 Total assets 51,178,002 50,891,029
Liabilities Claims and claim adjustment expense reserves 20,340,675 21,890,261 Unearned premium reserves 127,913 164,789 Other liabilities 963,241 800,049 Total liabilities 21,431,829 22,855,099
Net Position Restricted 1,000,000 1,000,000 Unrestricted 28,746,173 27,035,930 Total Net Position $ 29,746,173 $ 28,035,930
14 PIRMA 2020 Annual Report REVENUE, EXPENSES AND CHANGES IN NET POSITION
2020 2019 Operating Revenue: Member contributions $ 16,318,633 $ 16,484,801 Reinsurance premiums ceded (3,156,143) (2,890,407) Change in contributions that will be billed in the future to pay unpaid claims (1,359,361) (716,173) Total operating revenue 11,803,129 12,878,221
Operating Expenses: Claims and claim adjustment expenses 6,486,917 7,970,449 Marketing and administrator fees 4,516,817 4,540,931 Other 722,657 680,370 Total operating expenses 11,726,391 13,191,750
Operating Income (Loss) 76,738 (313,529)
Nonoperating Revenue: Investment earnings - interest and dividends 310,838 535,662 Net realized and unrealized gains on investments 1,381,616 2,177,653 Total nonoperating revenue 1,692,454 2,713,315
Withdrawals - member capital (58,949) (6,950)
Change in Net Position 1,710,243 2,392,836
Net Position, beginning of year 28,035,930 25,643,094
Net Position, end of year $ 29,746,173 $ 28,035,930
PIRMA 2020 Annual Report 15 SERVICE PROVIDERS
H.A. Thomson Company 961 Pottstown Pike Chester Springs, PA 19425 (800) 362-1011
BJ Giangiulio President Administration Andrew DiProspero Vice President PIRMA has contracted with Sedgwick to provide [email protected] administrative services to the Pool. Sedgwick’s responsibilities include the general administration of PIRMA and oversight of operations including claims, Account Managers underwriting, marketing and risk control. Sedgwick is Janet Brown [email protected] located in Southfield, Michigan, and operates as the Administrator for numerous other public entity risk Patricia Trevisan sharing programs. [email protected] Elaine Trofe Sedgwick [email protected] 300 Galleria Officentre Mary Ann Youtz Suite 310 [email protected] Southfield, MI 48034
Michele Chandler Loss Control [email protected] H.A. Thomson Company is the loss control service Marketing and Customer provider responsible for working with PIRMA members Service Administration to implement effective loss control programs. Loss Control is an organized and continuous effort to PIRMA has contracted with H.A. Thomson Company prevent and decrease claims and losses through the of Chester Springs to market the PIRMA program identification and analysis of risk and implementation to local governments in Pennsylvania. In addition of loss control measures. This is accomplished by: to marketing the program, H.A. Thomson provides On-site Member Service Visits support services on a statewide basis, working directly with the PIRMA members or their insurance Loss Control face-to-face meetings with representative. managers and department heads Loss exposures are identified and specific loss H.A. Thomson meets with the members on an control needs are addressed
annual basis to review changes in operations or New members to PIRMA are visited within 90 days exposures and to discuss property and liability of joining the Pool coverage questions. Additionally, they arrange for Existing members are visited regularly with their payment of contributions, issue coverage documents, individual loss control needs in mind and provide assistance with any concerns of the Members with large claim severity and frequency members. are seen annually
Loss Control provides assistance in implementing safety practices and programs
16 PIRMA 2020 Annual Report PIRMA’s Resource eLibrary
PIRMA maintains a website, www.pirma.org. The site not only provides information on PIRMA and answers to frequently asked questions, but also contains updates of safety articles and copies of the PIRMA Newsletters. Members who have obtained a password from the Administrator, have access to a vast library of loss control information and can order loss control resources at no cost:
Access to DVDs, streamed videos, and webinars
Hundreds of documents including manuals, loss control policies, job descriptions, and checklists Public Entity Online training programs, which are available 24 hours a day, 7 days a week University (PEU) is a portal that provides Certified Continuing Education Courses for more than 300 in- wastewater treatment operators depth, interactive Loss control consultants are only a phone call or online training courses specifically email away. tailored to public entities, conveniently Loss Control Service Provider organized into H.A. Thomson Company various “Workplace 961 Pottstown Pike Colleges” including Chester Springs, PA 19425 Employment Liability, (800) 362-1011 Streets and Roads, Internet Security/ Scott Miles Social Media, Loss Control Specialist Fire and Health [email protected] Departments, Greg Cunningham Law Enforcement, Loss Control Specialist General Safety, [email protected] Keeping Children Safe, and Software Loss Control Administrator Training, among others. Members Sedgwick have the ability 300 Galleria Officentre to print course Suite 310 completion Southfield, MI 48034 certificates upon (800) 367-4818 the conclusion of the training.
PIRMA 2020 Annual Report 17 General Counsel Claims Service Provider Integrated Risk Management (IRM) Stephen Siana, Esq. is General Counsel to PIRMA. 961 Pottstown Pike Mr. Siana has been involved with PIRMA since its Chester Springs, PA 19425 inception. In addition to serving as General Counsel, (800) 362-1011
Mr. Siana provides litigation management services to Kevin Pomian the Pool, consisting of oversight to and consultation Executive Vice President with PIRMA’s administrator, claims service provider, [email protected] and various law firms providing legal defense to members, in an effort to ensure a coordinated Todd Breneman response to third-party claims against the members Claims Manager of PIRMA. [email protected]
Siana Law Ludwig’s Corner Auditing Professional Center Since the inception of PIRMA, the Board of Directors 941 Pottstown Pike, Suite 200 has contracted with an independent auditing firm Chester Springs, PA 19425 to conduct an audit in accordance with standards (610) 321-5500 generally accepted in the United States of America. Stephen Siana, Esq. Each year of the Pool’s operation has resulted in the [email protected] issuance of an unqualified “clean” opinion at completion of the audit. This is the highest level of opinion that is Claims Service Provider and permitted to be issued. Claims Administrator Crowe LLP PIRMA utilizes a network of approved attorneys who 155 W. Nationwide Boulevard have complete familiarity with the Pool coverage #500 and the available immunities. They operate under the Columbus, OH 43215 close supervision of the PIRMA General Counsel and (860) 470-2123
Sedgwick Claims Legal Staff who also oversee the Joseph W. Kowalczyk, CPA operations of IRM, a specialty claims service firm, which has been retained to provide initial response to, and Financial Stability Rating® (FSR) investigation of, members’ claims. The PIRMA Board of Directors contracts, on an annual Claims Administration basis, with Demotech, Inc., an independent financial Sedgwick analysis services firm, to provide a Financial Stability 300 Galleria Officentre Rating® (FSR). PIRMA’s FSR is based on four specific Suite 310 areas of analysis: financial stability, loss reserves, Southfield, MI 48034 administration, and overall performance. For thirty one (800) 367-4818 (31) consecutive years, PIRMA has earned the highest Chris Dondzila available FSR of AAA (Unsurpassed). [email protected] Demotech, Inc. George Piskos, Esq. 2715 Tuller Parkway [email protected] Dublin, OH 43017
(800) 354-7207 Catherine Lameti, Esq. [email protected] Joseph Petrelli [email protected]
18 PIRMA 2020 Annual Report PAST BOARD MEMBERS
Appreciation is Paul Kahler Joseph Janasik Bath Borough Tredyffrin Township extended to the 1987-1999 1991-1998 following individuals Rodney Jarinko Sterling Smith whose knowledge and Moore Township Red Lion Borough commitment have 1987-1988 1994-2006 contributed to the Charles Feindler Van Montague Telford Borough Dublin Township success of PIRMA. 1988-1998 1995-2008
Henry Pennline David Jones Carroll Township Doylestown Township 1988-1995 1999-2000
Joe Digerlando Katharine Trolier Bushkill Township Upper Uwchlan Township 1988-1994 2006-2007
Robert Glass Donald Carman Limerick Township Elkland Borough 1989-1991 2008
Doris Concordia Helen Jackson Exeter Township New Beaver Borough 1989-1998 2009-2010
Carol Sambol Baden Borough 1987-2012
Stephanie Mason Doylestown Township 2003-2016
From 1988-2000 a representative of the Pennsylvania State Association of Boroughs (PSAB) also served on the Board of Directors. At various periods, Charles Feindler and Sterling Smith were appointed as the PSAB representative.
PIRMA 2020 Annual Report 19 PIRMA
Pennsylvania Intergovernmental Risk Management Association www.pirma.org