General Small Business Checklists - About Retro

Retrospective Rating (Retro) is an optional financial incentive program offered by the Department of Labor and Industries to help qualifying employers reduce their industrial insurance costs.

Employers can enroll on their own or in group plans sponsored by trade associations [many are listed here ].

Employers may receive premium refunds or they may be assessed additional premium based on their performance.

Enrolling in Retro doesn't change the industrial insurance rates assigned to an employer, or the premiums that are paid on a quarterly basis. There is no special "up-front discount" just for enrolling in Retrospective Rating. An employer's rates and experience factor are re-calculated for each calendar year, just as they otherwise would be.

Retro employers enjoy the following benefits:

• potential for premium refunds
• claim management assistance not otherwise available
• automatic monthly & quarterly reports that track their claims
• support/liaison assistance from their financial incentive coordinator

... but at the risk of being assessed additional premium.

Many groups are very active in promoting accident prevention and claim management by group members. Some provide direct claim management help, some even contract with a third party administrator to manage their group's claims. This can enhance their Retro performance, and may result in members seeing their own experience factor and industrial insurance rates improve over time.

Historically, employers in group Retro (on the whole) have out-performed those enrolled on their own, although each situation is different. Some groups have achieved poor results, and many employers enrolled individually have done very well. We encourage interested parties to do their homework and explore all options.

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To help with that homework, either contact your local L&I field office, or visit the Retro web site at Retro.LNI.wa.gov.