Board approves shift to PIPS workers' compensation arrangement; staff cites near-$1M premium savings

The Santa Monica-Malibu Unified School District board voted to adopt a resolution enabling staff to file for consent to self-insure workers' compensation through the PIPS program, a change staff and consultants said would lower the district's rate and return equity to the district. Christine Gervasi, introduced by Assistant Superintendent Gerardo Cruz as a senior vice president with Kenan, told trustees the district's rate would fall from the SLIM JPA projection of $4.62 per $100 payroll to $3.90 per $100 under PIPS. Based on the district's projected 2026-27 payroll of about $133,000,000, the district would save "a little over $953,000 just next year in your insurance premium," Gervasi said.

Board member Laurie moved to adopt the resolution and John seconded; roll-call votes were recorded in the public minutes and the resolution passed. Consultants also reported that the larger PIPS program expects to return equity to members as it manages surplus; staff said Santa Monica-Malibu's prorated share would be in the low tens of thousands for the coming year and that additional allocations will be considered by the PIPS board. Staff described the filing for a self-insurance certificate as an administrative step required to obtain a certificate number from the state; the contract and final implementation will return to the board for any further approvals.