Oregon Nonprofits - The Trust
The Oregon Nonprofit Employers Trust received its certificate of authority from the State of Oregon and began operations April 1, 2002. The Trust is chartered as a self-insured workers' compensation trust and operates as a charitable risk pool.
A formally elected Board of Directors sets policy and governs the affairs of ONET. The Trust's Bylaws stipulate the Rules of Conduct and empower five individual committees in the execution of major Trust responsibilities. Directors and officers must be active Trust members to be elected and to retain their seat. The Board of Directors meets six to eight times annually and the Trust holds annual meetings open to all members every April. By statute the Trust must contract with licensed and qualified service companies to manage its day-to-day activities.
Each candidate Trust member must qualify according to ONET's underwriting guidelines and selection criteria and be approved for membership by the State of Oregon. Continued membership incorporates an annual review and qualification process. All members are jointly and severally liable.
The Trust files audited financial statements with the State of Oregon each year. The State establishes security amounts needed to protect the interest of both the members and the State. The State also monitors the activities of the Trust every quarter and adjusts the amount to ensure adequacy. The Trust employs the use of various financial instruments to equal this amount on an ongoing basis.
Since its formation in 2002, ONET has experienced measured growth.
The Trust provides a cost-effective workers' compensation alternative
for Oregon's community of nonprofit organizations. Today, ONET
provides protection for millions of dollars in member payroll
exposures and has paid thousands in timely claim payments. Much
like with an insurance company, individual losses are reinsured
on a statutory basis through specific excess insurance. For additional
protection, it purchases aggregate excess insurance to cap its
annual claims liability.