Page 61 - 2019-20 CAFR

Rogue Community College

Notes to Basic Financial Statements
Year ended June 30, 2020

7. Risk Management (Continued)

(3) Sexual Assault and Molestation Coverage (SAM). To ensure that PACE reporting requirements are

followed, SAM coverage will be excluded for any claim or suit when any administrator, official, trustee,
director, officer, or board member of the Named Participant made responsible in an official capacity

to prevent or report sexual misconduct fails to report such sexual misconduct when under a legal duty
to do so.

(4) Hazardous Substance Coverage. The PACE Limited Pollution Coverage is being replaced with
Limited Hazardous Substance Coverage. The primary changes are to more narrowly define the types

of pollutants that are covered and to restrict coverage to $1 million annual aggregate cap for all PACE
members combined during one policy period.
The College retains the risk of liability for claims under $1,000 per occurrence. There have been no
significant reductions in insurance coverage during 2019‐20, and no insurance settlement exceeded

insurance coverage for the past three years. Liability insurance has a limit of $20 million per
occurrence and $30 million annual aggregate. The total limit of indemnification for all members for
property coverage, is $550 million, with a total limit of indemnification for any one member at $100
million. A $5,000 per occurrence deductible applies. Earth movement, flood, or the occurrence of

either, has a loss limit of $20 million per member, with an Annual Aggregate Loss Limit of $450 million.
A 5% deductible, not to exceed $50,000, applies to quake and flood claims.

The College purchased workers' compensation insurance through the State Accident Insurance Fund

Corporation (SAIF) for 2020‐21. The coverage is limited to $2 million per occurrence for bodily injury

by accident and disease inside of Oregon and $1 million per occurrence for bodily injury by accident

and disease outside of Oregon. The workers' compensation policy is a guaranteed cost plan, which

means the College pays the premium based on an estimated payroll at the beginning of the fiscal year.

The College accrues additional/return premium calculated on the actual payroll through an end of
fiscal year audit.
8. Pension Plans

General Information About the Pension Plans

The College contributes to two pension plans administered by PERS. The Oregon Public Employees
Retirement Fund (OPERF) applies to the College’s contribution for qualifying employees who were

hired before August 29, 2003 and is a cost‐sharing multiple‐employer defined benefit pension plan.

The Oregon Public Service Retirement Plan (OPSRP) is a hybrid successor plan to the OPERF and
consists of two programs: 1) The Pension Program, the defined benefit portion of the plan, which
applies to the qualifying College employees, hired after August 29, 2003. Benefits are calculated by a
formula for members who attain normal retirement age. The formula takes into account final average

salary and years of service. 2) The Individual Account Program (IAP), the defined contribution portion
of the plan. Beginning January 1, 2004, all PERS member contributions go into the IAP. PERS members

retain their existing PERS accounts, but any future member contributions are deposited into the
member’s IAP, not the member’s PERS account.
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