2025-11-17T14:58:01-06:00 2024-12-31 PwC US Tax LLP 655 NEW YORK AVE NW STE 1100 WASHINGTON DC 20001 990 2024-01-01 411357750 WORKERS' COMPENSATION REINSURANCE ASSOCIATION % DAVID MCKEE WORK 6512930999 400 ROBERT STREET NORTH Suite 1700 ST PAUL MN 551012026 JAMES HEER PRESIDENT & CEO 6512930999 2025-11-17 true true TRAVIS L PATTON P00369623 2024141000 2025-11-12 2024 2025-03-06 01:10:19Z JAMES HEER 400 ROBERT STREET NORTH 1700 ST PAUL MN 55101 20163306546 false X WWW.WCRA.BIZ X 1979 MN INDEMNIFY SERIOUS WORKERS' COMPENSATION CLAIMS 13 13 34 0 217901 35475 0 0 48475487 50621802 139729300 209931142 0 0 188204787 260552944 0 0 32232506 -21479802 4525828 5118579 0 0 0 12402330 9825986 49160664 -6535237 139044123 267088181 3484949959 3753979130 1624178919 1503872857 1860771040 2250106273 X THE WCRA ENSURES THE AVAILABILITY OF LONGTERM REINSURANCE PROTECTION FOR SERIOUS MINNESOTA WORKERS' COMPENSATION CLAIMS. OUR STAFF OF INNOVATIVE PROFESSIONALS IS DEDICATED TO ACHIEVING THE HIGHEST STANDARD OF EXCELLENCE THROUGH STABLE AND REASONABLE RATES, EXPERT CLAIMS ADMINISTRATION, FINANCIAL STABILITY, AND INFORMATIONAL SERVICES. false false IN 2024, THE WCRA REIMBURSED 2,690 CLAIM REQUESTS AND PAID $73,440,955 FOR THESE CLAIMS. RESERVES FOR LOSSES AND LOSS EXPENSES DECREASED BY $94,920,757. OVERHEAD EXPENSES ALLOCATED TO LOSS EXPENSES TOTALED $2,471,335. false false false false false false false false false true false false false true false true false false false true false false false false false false false false true false false false false false false false false false false false false false false true 28 0 true 34 true true true false false false false false false false X 13 13 false false false false true true true true true false false false true true true true true true false false MN X DAVID MCKEE 6512930999 400 ROBERT STREET NORTH STE 1700 ST PAUL MN 551012026 JAMES HEER PRESIDENT & CEO 50.0 0.0 X 378016 0 146789 CYNTHIA SMITH VP OF OPERATIONS/CORP SECRETRY 60.0 0.0 X 251451 0 160474 ALISON KHAN VP & ACTUARY 40.0 0.0 X 263198 0 64682 DAVE MCKEE VP & CFO TREASURER 45.0 0.0 X 215014 0 112670 TONY TIO ACTUARY 40.0 0.0 X 209930 0 94678 NATALIE HAEFNER VP OF CLAIMS AND INJURY MGMT 50.0 0.0 X 171639 0 128670 DANIEL LOVHAUG VP IT & SECURITY OFFICER 50.0 0.0 X 189291 0 55426 RAY MULARIE BUSINESS SYS ANALYST V 40.0 0.0 X 131921 0 63754 SEAN NAGEL ENTERPRISE ARCHITECT 40.0 0.0 X 168387 0 19552 EVAN CORDES LEGAL COUNSEL AS OF 2/24 40.0 0.0 X 169827 0 15126 PETER FOLEY MEMBERSHIP AUDIT SUPERVISOR 40.0 0.0 X 125401 0 32629 KENNETH PETERSON DIRECTOR 2.0 0.0 X 14250 0 0 JAMES OUKROP DIRECTOR 2.0 0.0 X 12500 0 0 WILLIAM MCCARTHY DIRECTOR 2.0 0.0 X 11500 0 0 TERRENCE MILLER DIRECTOR 2.0 0.0 X 9850 0 0 RICHARD LONG DIRECTOR 2.0 0.0 X 9750 0 0 SHEILA BROWN DIRECTOR 2.0 0.0 X 9700 0 0 DANIEL GREENSWEIG DIRECTOR 2.0 0.0 X 9500 0 0 ALLISON WAGGONER DIRECTOR 2.0 0.0 X 9500 0 0 SAMUEL NOLLEY DIRECTOR 2.0 0.0 X 7500 0 0 JEAN MACHART DIRECTOR 2.0 0.0 X 6750 0 0 EDWARD REYNOSO DIRECTOR 2.0 0.0 X 6500 0 0 PAUL MOORE DIRECTOR 2.0 0.0 X 0 0 0 JILL SCHURTZ DIRECTOR 2.0 0.0 X 0 0 0 2381375 0 894450 14 false true false JP MORGAN INSTITUTIONAL INVESTMENTS 10 SOUTH DEARBORN FL 43 CHICAGO IL 60603 PORTFOLIO MANAGEMENT 2074606 OUTSYSTEMS INC 44 FARNSWORTH STREET 9TH FLOOR BOSTON MA 02210 CUSTOM SOFTWARE 1408038 BLACKROCK FINANCIAL 40 E 52ND STREET FL 2 NEW YORK NY 10022 PORTFOLIO MANAGEMENT 912710 PIMCO 840 NEWPORT CENTER DRIVE NEWPORT BEACH CA 92660 PORTFOLIO MANAGEMENT 904402 NORTHERN TRUST 50 S LASALLE STREET CHICAGO IL 60675 PTFL MGMT & CUST FEE 537497 10 0 FUNDED REINSURANCE PREMIUMS 524298 50621802 50621802 50621802 65212489 217901 64994588 0 0 0 0 0 20047472255 19902753602 144718653 144718653 144718653 0 0 0 0 0 0 0 0 0 0 260552944 50621802 217901 209713241 X 0 0 0 -21479802 2244862 0 2224066 12236 382208 255207 36396 16836 195128 0 0 7221643 0 0 148579 1287880 0 218287 31904 0 35432 0 0 245083 260396 PERSONNEL ADMINISTRATIVE EXP. 128422 -6535237 0 0 287344541 228940837 0 0 174738 1169227 0 0 0 0 0 0 0 0 0 0 4834719 2229076 2093344 2605643 3160380543 3488417895 0 0 0 0 0 0 34956793 32845528 3484949959 3753979130 2039797 1962825 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1622139122 1501910032 1624178919 1503872857 X 0 0 0 0 1860771040 2250106273 1860771040 2250106273 3484949959 3753979130 X 267088181 122317195 -70143 X false true X true false 789602 239799 549803 4045117 1989277 2055840 2605643 0 SURPLUS DISTRIBUTION PAYABLE 26484 DUE TO SECURITIES BROKERS 210092864 LOSS & LOSS EXPENSE 1291790684 1501910032 397380988 144667521 -7839477 136828044 260552944 260552944 -14374714 -14374714 7221643 617834 7839477 -6535237 PART XI, LINE 2D: OVERHEAD EXPENSES ALLOCATED TO INVESTMENT INCOME: $(617,834) INVESTMENT EXPENSES: $(7,221,643) TOTAL: $(7,839,477) PART XII, LINE 4B: OVERHEAD EXPENSES ALLOCATED TO INVESTMENT INCOME: $617,834 Central America and the Caribbean 0 0 Investments 29198961 Europe (Including Iceland and Greenland) 0 0 Investments 35925576 0 0 0 0 65124537 65124537 true false true true true false SCHEDULE F, PART I, LINE 3: ALL OF THE INVESTMENTS LISTED ARE PRIVATE EQUITY PARTNERSHIPS AND ARE MANAGED BY A GENERAL PARTNER. THE VALUES PROVIDED ARE DERIVED FROM THE GENERAL PARTNERSHIP MARKET VALUE DISCLOSURES, OR FROM THEIR K-1 REPORTING (FORMS 926, 5471, 8621, OR 8865). WCRA IS A 501(C)(27) TAX EXEMPT ENTITY AND THEREFORE IS NOT TREATED AS A SHAREHOLDER OF OUR GENERAL PARTNERSHIP PASSIVE FOREIGN INVESTMENT COMPANY (PFIC). X X X X false true false JAMES HEER PRESIDENT & CEO 355016 0 0 0 23000 0 98179 0 48610 0 524805 0 0 0 ALISON KHAN VP & ACTUARY 263198 0 0 0 0 0 32528 0 32154 0 327880 0 0 0 CYNTHIA SMITH VP OF OPERATIONS/CORP SECRETRY 228451 0 0 0 23000 0 123858 0 36616 0 411925 0 0 0 DAVE MCKEE VP & CFO TREASURER 215014 0 0 0 0 0 72357 0 40313 0 327684 0 0 0 NATALIE HAEFNER VP OF CLAIMS AND INJURY MGMT 171639 0 0 0 0 0 80965 0 47705 0 300309 0 0 0 DANIEL LOVHAUG VP IT & SECURITY OFFICER 179291 0 0 0 10000 0 31798 0 23628 0 244717 0 0 0 TONY TIO ACTUARY 209930 0 0 0 0 0 72456 0 22222 0 304608 0 0 0 EVAN CORDES LEGAL COUNSEL AS OF 2/24 169827 0 0 0 0 0 8077 0 7049 0 184953 0 0 0 SEAN NAGEL ENTERPRISE ARCHITECT 168387 0 0 0 0 0 9754 0 9798 0 187939 0 0 0 RAY MULARIE BUSINESS SYS ANALYST V 131921 0 0 0 0 0 28883 0 34871 0 195675 0 0 0 PETER FOLEY MEMBERSHIP AUDIT SUPERVISOR 125401 0 0 0 0 0 30888 0 1741 0 158030 0 0 0 SCHEDULE J, PART I, LINE 4(B) JAMES HEER, CEO, PARTICIPATED IN A SECTION 457(F) NONQUALIFIED DEFERRED COMPENSATION PLAN.EMPLOYER CONTRIBUTIONS TO THE PLAN DURING CALENDAR YEAR 2024 TOTALED $4,400 AND ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C).NO AMOUNTS WERE PAID OUT DURING CALENDAR YEAR 2024. PART III, LINE 4A: THE WCRA PROVIDES REINSURANCE PROTECTION FOR SERIOUS WORKERS' COMPENSATION LOSSES TO ALL PRIMARY WORKERS' COMPENSATION INSURANCE PROVIDERS AND SELF-INSURED EMPLOYERS IN THE STATE OF MINNESOTA. THE ASSOCIATION PROVIDES FULL INDEMNIFICATION TO ITS MEMBERS FOR WORKERS' COMPENSATION LOSSES IN EXCESS OF A MEMBER'S RETENTION LIMIT, AS PROVIDED FOR UNDER MINNESOTA STATUTES, CHAPTERS 79 AND 176. FOR 2024, REINSURANCE PREMIUMS WERE BILLED TO ITS MEMBERS TO COVER THE ESTIMATED PRESENT VALUE, USING AN ANNUAL DISCOUNT RATE OF 6.5%, OF THE ESTIMATED ULTIMATE LIABILITY FOR MEMBERS' INCURRED LOSSES. PREMIUMS ALSO COVER THE ESTIMATED LOSS EXPENSES, OPERATING, AND ADMINISTRATIVE EXPENSES OF THE WCRA. PREMIUMS ARE INVESTED IN BONDS, EQUITIES, AND OTHER INVESTMENTS WITH AN OBJECTIVE OF EARNING AN ANNUAL 6.5% RETURN. SECURITIES ARE STATED AT FAIR MARKET VALUE, WHILE CERTAIN OTHER ASSETS ARE STATED AT NET ASSET VALUE. THE WCRA ANTICIPATES PAYING FUTURE CLAIMS OF $3.2 BILLION FOR LOSSES AND LOSS EXPENSES INCURRED ON OR BEFORE 12/31/2024. LOSSES PAID FROM WCRA'S 1979 INCEPTION THROUGH 12/31/2024 EQUAL $2.0 BILLION. THE WCRA IS EXEMPT FROM FEDERAL INCOME TAX UNDER IRS SECTION 501(C)(27)(A). TO QUALIFY FOR THIS EXEMPTION, ANY MEMBERSHIP ORGANIZATION MUST MEET ALL THE FOLLOWING REQUIREMENTS: 1) IT WAS ESTABLISHED BY A STATE BEFORE JUNE 1, 1996, EXCLUSIVELY TO REIMBURSE MEMBERS FOR LOSSES UNDER WORKERS' COMPENSATION ACTS; 2) THE STATE REQUIRES THAT THE MEMBERSHIP CONSIST OF ALL PERSONS WHO ISSUE INSURANCE COVERING WORKERS' COMPENSATION LOSSES IN THE STATE AND ALL PERSONS AND GOVERNMENT ENTITIES WHO SELF-INSURE AGAINST THOSE LOSSES; 3) IT OPERATES AS A NONPROFIT ORGANIZATION BY RETURNING SURPLUS INCOME TO ITS MEMBERS OR WORKERS' COMPENSATION POLICYHOLDERS ON A PERIODIC BASIS AND BY REDUCING INITIAL PREMIUMS IN ANTICIPATION OF INVESTMENT INCOME. PART VI, SECTION A, LINES 6 & 7A THE WORKERS' COMPENSATION REINSURANCE ASSOCIATION (WCRA) WAS CREATED BY THE MINNESOTA STATE LEGISLATURE IN 1979. MINNESOTA (MN) LAW REQUIRES ALL INSURERS AND SELF-INSURERS TO PURCHASE WORKERS' COMPENSATION REINSURANCE BY BECOMING MEMBERS OF THE WCRA. STATE LAW SPECIFIES THE COMPOSITION OF THE BOARD, WHICH INCLUDES: FOUR INSURER REPRESENTATIVES ELECTED BY INSURER MEMBERS OF THE WCRA AND APPROVED BY THE MN COMMISSIONER OF LABOR AND INDUSTRY; TWO SELF-INSURER REPRESENTATIVES ELECTED BY SELF-INSURER MEMBERS OF THE WCRA AND APPROVED BY THE MN COMMISSIONER OF LABOR AND INDUSTRY; TWO EMPLOYER REPRESENTATIVES, TWO EMPLOYEE REPRESENTATIVES, AND ONE PUBLIC REPRESENTATIVE APPOINTED BY THE MN COMMISSIONER OF LABOR AND INDUSTRY; THE MN COMMISSIONER OF FINANCE (OR DESIGNEE); AND THE EXECUTIVE DIRECTOR OF THE MN STATE BOARD OF INVESTMENT (OR DESIGNEE). DUE TO THE STRUCTURE OF THE WCRA AND THE BOARD, SELF-INSURER AND INSURER BOARD MEMBERS HAVE A BUSINESS RELATIONSHIP WITH THE WCRA BECAUSE THEIR EMPLOYERS ARE ALL INSURED BY THE WCRA. PART VI, SECTION A, LINE 7B BY STATUTE, CERTAIN DECISIONS MADE BY THE WCRA BOARD OF DIRECTORS ARE SUBJECT TO APPROVAL BY THE MINNESOTA COMMISSIONER OF LABOR AND INDUSTRY AS INDICATED IN ITEM 6 ABOVE, SUCH AS APPROVAL OF MEMBERSHIP ASSESSMENTS OR SURPLUS DISTRIBUTIONS, REINSURANCE RATES CHARGED BY THE WCRA, THE WCRA BOARD ANNUAL STIPEND, AND PER DIEMS PAID TO THE BOARD AND COMMITTEE MEMBERS. PART VI, SECTION B, LINE 11B: THE WCRA'S OUTSIDE TAX ADVISOR, PWC US TAX LLP, PREPARES THE DRAFT FORM 990. THE WCRA STAFF, VICE PRESIDENT AND CFO CONDUCT A DETAILED REVIEW OF THE DRAFT FORM 990. PwC US Tax LLP COMPLETES THE FINAL FORM 990. THE WCRA STAFF THEN REVIEWS THE FINAL FORM 990 AND THE CEO SIGNS. PART VI, SECTION B, LINE 12C: ANNUALLY, WCRA DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW THE POLICY AND COMPLETE A CONFLICT-OF-INTEREST DISCLOSURE STATEMENT. ANSWERS ARE REPORTED TO THE FULL BOARD TO DETERMINE IF ACTION IS NEEDED. IN ADDITION, THE POLICY IS REVIEWED WITH ALL NEW BOARD MEMBERS DURING THEIR ORIENTATION AND ANY DISCLOSURES ARE SHARED WITH THE BOARD. BOARD MEMBERS AND THE CEO ARE ALSO REQUIRED TO REPORT ANY CONFLICT THAT MAY ARISE THROUGHOUT THE YEAR TO THE BOARD CHAIR OR AT A BOARD MEETING TO SEE IF FURTHER ACTION IS REQUIRED. OTHER WCRA OFFICERS ARE REQUIRED TO REPORT ANY CONFLICT OF INTEREST THAT MAY ARISE THROUGHOUT THE YEAR TO THE CEO, ANOTHER OFFICER, OR A BOARD MEMBER. PART VI, LINES SECTION B, LINE 15: THE CEO'S PERFORMANCE IS REVIEWED AND COMPENSATION IS COMPARED TO MARKET VIA SALARY SURVEYS, AS WELL AS TO FORM 990 COMPENSATION INFORMATION FROM COMPARABLE ORGANIZATIONS, AND THEN PRESENTED TO THE WCRA PERSONNEL COMMITTEE, MADE UP OF INDEPENDENT PERSONS, WHO REVIEW THE INFORMATION AND MAKE A RECOMMENDATION TO THE FULL INDEPENDENT BOARD REGARDING PERFORMANCE EVALUATION AND COMPENSATION CHANGES. THE BOARD REVIEWS THE PERFORMANCE REVIEW INFORMATION AND COMPENSATION DATA AND APPROVES ANY CHANGE IN COMPENSATION. PART VI, SECTION C, LINE 19: THE WCRA MAKES ITS GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC VIA ITS WEBSITE, WWW.WCRA.BIZ. THE WCRA HAS SEPARATE CONFLICT OF INTEREST POLICIES FOR ITS BOARD OF DIRECTORS, COMMITTEE MEMBERS, AND WCRA STAFF, AND IT PROVIDES A COPY ANNUALLY TO THESE GROUPS. THE CONFLICT OF INTEREST POLICIES ARE AVAILABLE TO THE MEMBERS OF THE WCRA UPON REQUEST. PART IX, LINE 5: IN 2024, THERE WAS A REDUCTION OF $150,000,000 IN "PRIOR ACCIDENT YEAR LOSS RESERVES FROM ACTUARIAL ADJUSTMENTS" DUE TO FAVORABLE DEVELOPMENT ON CASE-INCURRED LOSSES AND A REDUCTION IN PROJECTED MEDICAL INFLATION AND LIFE EXPECTANCY, RESULTING IN LOWER PROJECTED ULTIMATE LOSSES. THIS RESULTED IN A NET NEGATIVE "BENEFITS PAID TO MEMBERS" OF $-21,479,802. PART XI, LINE 9: RECOVERABLE SURPLUS DISTRIBUTIONS