COLUMBIA, SC - State and local agencies that are dealing with the high cost of fuel and tight budgets will get some help from the Budget and Control Board beginning July 1. The Board’s Insurance Reserve Fund will issue a one-time, $20 million return of premium for property, casualty and liability insurance to approximately 1,000 state and local entities. The rebate is being issued because an independent actuarial study of the fund indicates there are sufficient reserves to cover claims. The return of premium represents approximately 11.5 percent of the IRF’s available reserves.

The cuts mark the seventh time in the last year that the Board has returned money to its customers through rate reductions. The majority of IRF clients are local governments.

“We know our customers are facing real financial challenges and we are constantly exploring new ways to deliver services for less money,” said Budget and Control Board Executive Director Frank Fusco (pictured).

The return of premium comes on top of a previously-announced 21.6 percent reduction in premiums for automobile physical damage and a 14.9 percent reduction in tort liability rates. Those reductions will take effect July 1 and will save agencies more than $7.3 million annually. The rate cuts are possible because of favorable loss trends.  In addition, the IRF also cut premiums for the state school bus fleet by $411,000 for 2008-09.

Other Board programs have cut rates on telephone, data, fleet and procurement services, saving agencies an estimated $4.3 million annually.

About the Insurance Reserve Fund
The IRF provides a complete line of property, casualty and liability coverage for state and local entities. Its policies provide insurance on more than $19.5 billion in property values and for 168,000 state and local government employees. IRF policies include coverage for 38,000 state and local vehicles, including the state school bus fleet, and 19 hospitals. It insures all state agencies but is optional for local governments. For more information, go to www.irf.sc.gov

About the Budget and Control Board
The Budget and Control Board’s is the central administrative agency for South Carolina state government. It manages a variety of programs including the South Carolina Retirement Systems, the State Health Plan and state procurement. For more information, go to www.bcb.sc.gov