Confused by all the renewal notices at the start of the year? Many employers in Retro programs mistakenly believe that renewing their association membership locks them into their current Retro group. Let’s clear that up—and show you how this misunderstanding could cost you.
Association Membership Renewals Explained
Renewing your association membership keeps you connected to a trade organization or industry group that supports your business with resources, advocacy, and networking. However, it does not automatically commit you to their Retro program for another plan year.
Retro Group Renewals: A Separate Decision
Retro groups are financial incentive programs offering refunds on workers’ compensation premiums based on safety and claims management performance. Retro participation follows a plan year (not the calendar year). At the end of a Retro plan year, you can:
- Renew participation in your current group
- Switch Retro groups
- Exit the Retro program entirely
Key Points to Keep in Mind
- Association membership renewal doesn’t lock you into a Retro group.
- Evaluate your Retro group’s performance: Assess refunds, required mandates, premium forecasts, injury prevention support, and return-to-work assistance to ensure your group meets your needs and expectations.
- Explore alternatives: You can switch groups or strategies to improve results.
For Example: A company with a 1.8 EMR in 2001 has kept it below 1 for over a decade after switching Retro groups. By 2023, they reduced claim duration by 77% and claim costs by 68%—highlighting the lasting impact of effective claims management and strong safety support.
Take Action
- Know Retro deadlines: Understand your plan year and renewal timing; different plans renew at different times of the year. Retro plan years renew on July 1st, October 1st, January 1st and April 1st. You have until the 15th of the month prior to switch groups, i.e. June 15th to switch from a July 1st group. Many, but not all, Manufacturing Retro groups renew on July 1st.
- Assess performance: Review claims, refunds, premium forecasts and benefits with your Retro administrator.
- Compare alternatives: Explore other Retro groups if current outcomes fall short.
- Seek advice: Consult a workers’ compensation expert or peer for guidance.
Ready to explore options?
If you’re uncertain whether your current Retro group is the right fit, we can help. Our team can assess your performance, give you a clear picture of where you stand, identify potential savings, and forecast future premiums.
Don’t wait until the last minute! It’s a complicated decision. Reach out today for a consultation, and let’s ensure your workers’ compensation strategy is optimized for the coming plan year and beyond.
