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Trustees have made every effort to insure the financial <br />integrity of your fund, while providinq a workable payment <br />plan for individual members. If any member forsees difficulty <br />In meeting the requi'r•ements for payment of premiums they should <br />contact the Administrator immediately. <br />The following table indicates member cities of the FY 78 Fund <br />Year which will receive a dividend, and the amount of the <br />dividend. <br />The Trustees declared from surplus of the Loss Fund and Interest, <br />$175,000.to be paid as a dividend to those members who maintained <br />a loss ratio (as of the May 1979 Loss Report) of 70% or less. <br />There were 43 eligible members out of 54. The eleven members <br />who experienced losses greater than 70% created a fund deficit <br />of $239,226,' This deficit was taken into account in determining <br />the amount of dividend due to the eligible 43 members. The <br />Board of Trustees approved the following distribution formula. <br />TOT. DIVIDEND (1) <br />Surplus 2 -+ Fund Deficit T37.= Surplus Distribution Factor (4 <br />(1) Fund'Surplus + $3,475 of Interest to <br />be declared as a dividend. _ $175,000 <br />{2) Net Surplus of Premiums after all <br />expenses, claims and reserves have <br />been deducted, _ $171,525 <br />.(3) Excess losses of eleven members <br />= $239,226 <br />(4) S.D.F. = 175,000 (declared) = .42605 <br />171,525 + 239,22 <br />(5) Member's*Surplus.X .42605 = Member's Dividend` <br />Members whose dividends exceeded 25% of their normal premium <br />we're adjusted down to 25% and the excess_ dividend was reallocated, <br />SEP 191979 BOwt-531 <br />