Retro Return - Alabama Retail Comp

What Is The Retro Return?

Alabama Retail Comp’s retrospective rating plan is a controlled method of returning excess funds (profits) to participating employers. The retrospective rating plan uses an actuarial formula that takes into account individual participants’ experience versus the experience of the Fund as a whole.

How Do We Do It?

The retro return is determined on a policy year basis and given as a credit on renewal coverage. Many participants see returns of more than 30% of their premium. The amount of credit employers receive is tied directly to their loss ratio. The lower the employer’s losses are as a percentage of their contribution, the higher their retrospective credit at renewal.

Download Retro Return History

In 2025, Alabama Retail Comp will return $7.5 million back to our participants through our retro return.

Retro Return Eligibility

Participants are eligible for a retrospective return if they meet all the following requirements:

1. Participation During the Return Year

Having been a participant in the Fund during the fiscal year to which the return applies.

2. Current and Continuous Participation

Being a current participant in the Fund with continuous participation from the fiscal year that the return applies until the fiscal year of the distribution of the retrospective return.

3. Favorable Loss Experience

Having less than a 70% Loss Ratio for the fund year(s) in which the retrospective return applies.