Fund Eligibility
Participants shall be engaged in food processing, food wholesale and food distribution. Specifically those employers that convert raw food products into consumable items such as bottlers, canners, brewers, homogenizers, and pet food processors.
Also eligible are businesses engaged in:
- Food Warehousing
- Food Wholesale Distribution
- Food Products Packaging
- Food Related Supplies
- Milk Haulers
- Cannabis - click here for details
Fund Structure
- Fund members pay premiums into the Fund. Premium is calculated based on the payroll and loss experience of the member.
- The Fund invests the premium until it’s needed to pay claims.
- Approximately 25% of premiums go toward operating expenses and the purchase of excess insurance.
- The remainder of collected premium dedicated to member claims.
- Premium not used to pay Fund expenses or claims is returned back to the members, along with any investment income earned.
History of the Fund
The Michigan Food Processor and Distribution Fund (MFPD Fund) was established October 1, 2007 as a way to control the long-term workers’ compensation costs.
Today, over 50 of the finest skilled food processors and distributors from every corner of Michigan rely on the MFPD Fund for their workers’ compensation coverage.
How the Fund Works
The MFPD Fund, administered by RPS Regency, is owned by its members and operates similar to an insurance company – providing the same employer protection and paying claims to employees injured on the job. The Fund saves members money by operating with reduced overhead, aggressively managing its claims and through industry-specific loss control efforts. The money that is not used to pay for claims, and any investment income, is returned back to the members over time.
As the Fund ages, members receive profit returns from a number of Fund years. Also, the MFPD Fund is protected from large losses by the purchase of excess loss insurance, further enhancing stability and profitability. Over the Fund’s history, members have received profit returns equal to 39 percent of the premiums paid.