Board approves move to PIPS workers'comp program, citing projected savings

The Santa Monica-Malibu Unified Board of Education voted unanimously to approve Resolution No. 2543 authorizing the district to join the PIPS workers' compensation program directly, a change staff and consultants said will isolate the district's recent claims experience and could lower its insurance rate.

Assistant Superintendent of Business Gerardo Cruz introduced the item and invited Keenan consultant Christine Gervasi to explain the change. Gervasi said the PIPS program is a monoline workers'compensation program for K'2 and community colleges in California with a large payroll base in the reinsurance market. "So that's a pretty significant, savings for the district," she said, estimating a conservative rate range between $3.66 and $3.80 per payroll unit versus the current $4.07 rate and placing the district's likely savings in the roughly $500,000 ballpark.

Board members asked how the district's ex-mod and claims history would affect underwriting, whether coverage limits would change and how run-off claims would be handled. Gervasi and district risk staff answered that coverage limits would remain the same, that PIPS underwriters primarily consider the district's most recent three years of claims when rerating, and that the existing JPA would remain to administer run-off claims through June 30, 2026.

Trustees moved and seconded the resolution and recorded unanimous approval from those present. Staff said the same Keenan service team will continue to provide claims management and loss-control resources after the transition, and the district will bring formal paperwork forward as required by PIPS.