Participants of the Fund must be a member of a Michigan Grocers Association/Michigan Retailers Association. Fund members are businesses generally known as a supermarket and/or grocery store whose volume of sales is primarily engaged in selling a general line of food and beverages such as canned and frozen foods, dairy products, a variety of beverages including alcohol, fresh fruits and vegetables, fresh and prepared meats, fish, and poultry.
- Fund members pay premiums into the Fund. Premium is calculated based on the payroll and loss experience of the member.
- The Fund invests the premium until it’s needed to pay claims.
- Approximately 25% of premiums go toward operating expenses and the purchase of excess insurance.
- The remainder of collected premium dedicated to member claims.
- Premium not used to pay Fund expenses or claims is returned back to the members, along with any investment income earned.
History of the Fund
The Michigan Grocers Fund was established January 1, 2014 as a way to control the long-term workers’ compensation costs.
Today, over 60 of the finest grocery and supermarket owners from every corner of Michigan rely on the MI Grocers Fund for their workers’ compensation coverage.
How the Fund Works
The Michigan Grocers Fund, administered by RPS Regency, is owned by its members and operates similar to an insurance company – providing the same employer protection and paying claims to employees injured on the job. The Fund saves members money by operating with reduced overhead, aggressively managing its claims and through industry-specific loss control efforts. The money that is not used to pay for claims, and any investment income, is returned back to the members over time.
As the Fund ages, members receive profit returns from a number of Fund years. Also, the MI Grocers Fund is protected from large losses by the purchase of excess loss insurance, further enhancing stability and profitability. Over the Fund’s history, members have received profit returns equal to 41 percent of the premiums paid.