FY27 Rate Setting Highlights

1. Relativity rates for each type of entity have been adjusted based on last year’s data.

2. Due to relativity adjustments, some entities will see increases, but most entities will see modest rate decreases.

3. Deductible credits have been actuarily adjusted to current loss data. The adjustment will decrease the credit received by 1% to 5%, depending on the deductible chosen.

4. Recognizing ongoing uncertainty in local governments’ revenue streams, the LGLP Board adopted a lower “confidence level” for setting this year’s rates. This decision aims to help ease inflationary factors that would have otherwise resulted in higher contribution rates.

5. Overall, the expectation is that FY27 total contribution income will remain flat despite inflationary forces. The Board recognizes that as losses increase, reserves must be tapped. LGLP remains well funded and will be able to meet obligations.

6. It is important to recognize that similar relief should not be expected in future years. Fluctuations in loss patterns, changes in risk exposure, and evolving financial pressures may require further adjustments, and future rates will continue to be determined by updated actuarial analyses and the Pool’s overall financial health.