Texas Political Subdivisions Joint Self-Insurance Fund (“TPS”) is a self-insurance program originally organized to provide local governments with a reliable source for fairly priced insurance coupled with superior claims management and a comprehensive safety program. TPS is governed by a nine-member Board of Trustees, all active and committed volunteers representing local governments, and the membership of TPS is comprised of school districts, counties, cities and other political subdivisions throughout Texas. TPS is headquartered in Dallas.
TPS was formed on September 22, 1983, as the Texas Political Subdivisions Workers’ Compensation Joint Self-Insurance Fund to provide a vehicle for workers’ compensation coverage. The Texas Political Subdivisions Property Casualty Self-Insurance Fund was formed in 1991 to provide property and casualty coverage for members, and the two funds are operated jointly as TPS.
Operated as a self-insurance pool, TPS offers workers’ comp and property & casualty coverage to school districts, municipalities, hospital districts, counties, appraisal districts, port authorities, junior colleges, cities, housing authorities, municipal water districts, and other political subdivisions in accordance with the terms of interlocal agreements among members. Members in TPS may obtain workers’ comp and/or property & casualty coverages through a “guaranteed-cost plan” or administrative and claim services through a “cash-flow plan”.
Guaranteed-cost members, who are non-assessable, combine their contributions to cover pooled losses and expenses. The required contribution for each guaranteed-cost member is based upon the rated manual contribution affected by a factor for individual loss experience, and the member’s share of total expenses.
Cash-flow members’ losses are not pooled with those of other members. Receivables from cash-flow members represent amounts equal to their own paid losses, plus fees paid for administrative and claim services provided.
As required by interlocal agreement, TPS obtains specific excess of loss coverage over and above the self-insured retention stated in the interlocal agreement, so that members will not have joint and several liability beyond their required contribution.
TPS is member owned and governed by an elected Board of Trustees. Membership gives you the opportunity to serve on the Board of Trustees and committees as well as gain local insurance agent representation. Additionally, membership provides an exemption from going out to bid each year, and provides DWC representation at no charge. And most importantly, TPS purchases reinsurance through A-rated carriers who require an independent annual actuarial study, which maintains the financial integrity and stability of our program. TPS is fully funded for losses, loss development and incurred but not reported losses (IBNR).