Section 3. Premium Calculation.  The premium for each participating system in Utrust will be determined annually according to the following procedures:

a)   The premium for each participating board will be the average claims for the past four and a half years unless their experience rating is greater than one.  If their experience rating is greater than one, then their premium will be the lesser of their average claims since 1990 or their average claims for the past four and a half years.

b)   When a member board establishes a new account, the premium for the new account will be the same for the account from which it separated until the new account has established a 5 year history.

c)       Unemployment costs related to construction management will be an exception to normal unemployment practices within the Unemployment Compensation Trust.  The system will not be charged for the taxable wages for these employees but will be responsible for paying 100% of the cost of the claims that result. The system will be billed for the claims when charged by the Department of Labor and Workforce Development.

d)   Unemployment costs related to laying off employees to outsource services previously provided by them will be an exception to normal unemployment practices within the Unemployment Compensation Trust.  Boards that elect to lay off a class of employees to contract out those services will be responsible for paying the added unemployment costs that result.  The member will be billed for the claims when charged by the Department of Labor and Workforce Development.