The State is issuing this solicitation for the purposes of analyzing the Agency’s adequacy to meet its liabilities. There have been seven (7) previous actuarial analyses. These were performed in 1989, 1991, 1996, 2003, 2011, 2015 and 2021. The major focus of the previous studies was to determine a total unfunded loss liability for the total of the Awarded plus the Impleaded but not yet Awarded claims. While the total unfunded liability of the Agency at a given point in time is of interest, it is now felt that more relevant information will be obtained by limiting the analysis to a future period of ten years from the present. It is unlikely that adequate financial resources will ever be available to fully fund the Agency’s total liability. The Agency will almost certainly continue to operate on a “pay as you go” basis. Thus far, the assessment rate has proven adequate to pay all claims and allow the Fund Balance to gradually increase. The assessment rate is subject to review by the State Legislature. If future requirements indicate a need to increase the rate, it may take one or more years to effect the change. The requested actuarial analysis is intended to provide the best possible look ahead to provide needed lead time for a rate change or to justify keeping the rate at the current level.
