Retrospective Return Plan

• The Retrospective Return Plan is a controlled method of returning excess funds accumulated due to favorable operating experience to the membership.
• The return plan uses an actuarial formula to determine when returns to members should be made.
• The retrospective return formula was devised by Tillinghast, a nationally recognized actuarial firm, to provide for the accumulation of adequate amounts of retained funds before returns may be made to Fund members.
• A fund year must mature two years before it can be considered in the formula.
• The experience-driven formula allows the balance in the retro reserve to be used to offset potential future adverse experience or to make returns to members. This feature helps insulate members from adverse experiences and rewards members when experience is favorable.

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