Indiana Public Employers Plan (IPEP)

IPEP is a group self-funded workers compensation program for Indiana public employers.

Indiana Public Employers Plan (IPEP) is a self-funded workers compensation risk-sharing group made up of 600+ governmental entities​ throughout the state of Indiana. It is the only self-funded workers compensation risk-sharing group in the state. 

IPEP began in 1989 to provide governmental entities with another option to meet their workers compensation and occupational diseases obligations. Although governmental entities are employers under WC law, they are exempt from the requirements to insure or be approved by any agency to self-insure [IC-22-3-2-5 and IC-22-3-7-34]. 

Further, the Interlocal Cooperation Act [IC-36-1-7] allows governmental entities to do in combination that which they may do individually. The plan offers savings because it pays no taxes, no assessments to state funds, and no assigned risk pool surcharge.

IPEP covers 600+ governmental entities in Indiana as of 2020.  IPEP presents some members with an annual Safety Award. The award is achieved by having less than a 50-percent loss ratio and an acceptable claim incident rate compared to municipalities statewide.

IPEP does not hold a class IIB license from the Indiana Department of Insurance to write workers compensation, therefore, it is not a member of the ICRB. Its offer of coverage in the voluntary market does not count when we look at an employer’s eligibility for the assigned risk market.

22-3-6-2. Employers’ mutual associations and exchanges authorized.
(c)  Subsection (a) does not apply to mutual insurance associations and reciprocal or interinsurance exchanges formed and operating on or before January 1, 1991, which shall continue to operate subject to the provisions of IC 22-3-2 through IC 22-3-6 and to such reasonable conditions and restrictions as may be fixed by the worker’s compensation board.  

Mutual and reciprocal associations unaffected.Nothing in this chapter shall be construed to annul, restrict, or in any manner interfere with the licensing and supervision of mutual insurance associations and reciprocal associations formed and operating on or before January 1, 1991, solely for the writing of worker’s compensation insurance as provided under IC 22-3-2 through IC 22-3-6.

Data Used in Ratemaking
IPEP, carrier code 29629, submits USP data on its policies so that the ICRB can produce experience ratings for IPEP’s members. Because we have its USP data and because we know IPEP represents a significant percentage of the business in specific class codes, we do include their data in the determination of the class rates.

Since IPEP is not an insurance company, it is not required to report aggregate financial data, and therefore, its experience is not included in the overall indications.

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