The ROII plan year begins on July 1 and ends on June 30 of the following year and the three subsequent annual adjustments, the first of which occurs roughly ten months after the plan year has ended. In total, a plan year lasts 46 months from start to finish. Member participants are required to continue paying their regular quarterly premiums directly to the Washington State Department of Labor & Industries (L&I) during the plan year.
After the plan year ends, the following April, L&I will calculate the first of three Retrospective premium adjustments. The ROII plan year refunds are based on what the group participants (your company and others) pay in Standard Premiums to L&I and Developed Losses that L&I charges the group for claims.
If the ROII group's Standard Premiums paid exceed its Developed Losses, L&I returns the excess money to the group sponsor. If Developed Losses exceed Standard Premiums paid, member participants may be assessed additional premiums.