Actuarial Analysis of Projected Liability and Assessment Mechanism

The State of Maryland's Subsequent Injury Fund (SIF) is seeking an actuarial firm to conduct a comprehensive analysis of its projected liability and assessment mechanism through a Request for Proposals (RFP) numbered SIF-25-01. The procurement is specifically for Baltimore County and focuses on performing an in-depth actuarial review to evaluate the Fund's financial sustainability over the next ten years. The primary deliverable will be a detailed report projecting the adequacy of current funding mechanisms to meet present and future obligations, with a particular emphasis on determining the total unfunded loss liability for awarded and impleaded claims. Key objectives include analyzing current claim caseloads, estimating future cases, and developing logical projections of Fund income and potential assessment rate scenarios. The contractor must have demonstrated experience in workers' compensation claims and must employ at least two principal actuaries holding specific professional certifications. Evaluation criteria will likely include technical expertise, professional qualifications, and comprehensive analytical approach. Critical dates for this procurement include a virtual pre-proposal conference on May 8, 2025, questions due by May 14, 2025, and proposals due by May 30, 2025 at 11:59 p.m. EDT. The contract will span six months from August 1, 2025 to January 31, 2026, with potential extensions at the State's discretion.

There are no specific minority business enterprise (MBE) or veteran-owned small business enterprise (VSBE) subcontracting goals for this procurement. The contract will be awarded as a firm fixed-price agreement with no guaranteed minimum or maximum usage. The Subsequent Injury Fund currently derives income through assessments on insurance companies for permanent disability awards, with the current assessment rate at 6.5%. The study will explore potential rate reduction scenarios, including examining the financial implications of reducing rates to 5.5% and 6.0%. While no specific budget range is explicitly stated, the comprehensive nature of the analysis suggests a substantial professional services contract. The selected contractor will be expected to develop both draft and final reports, potentially testify before legislative bodies, and provide a thorough analysis to support the Fund's financial planning. The ultimate goal is to provide lead time for potential assessment rate changes and ensure the Fund's continued operational sustainability, recognizing that full funding is unlikely and the Fund will likely continue to operate on a "pay as you go" basis.