Manchester, Connecticut

Risk Management


On July 1, 1983, the Town established the Manchester Self-Insurance Program (MSIP) and the Town of Manchester Medical Insurance Fund (TOMMIF) to account for and finance its uninsured risk of loss. TOMMIF provides the payment of administrative costs and claims. MSIP provides for the purchase of insurance and services, and the payment of costs and claims associated with workers' compensation, automobile liability, and general liability. These funds are accounted for as internal service funds.


The Town of Manchester Medical Insurance Fund (TOMMIF) was established to account for and finance its self-insured employee health benefit program. The program is administered by CIGNA, and insures the lives of over 4,000 active and retired employees and their families.  Manchester is a member of CT Prime, a regional captive insurance collaborative that offers individual stop-loss insurance coverage for claims over $500,000.

TOMMIF provides the payment of administrative fees and claims associated with all healthcare costs. The claim reserves reported in the TOMMIF fund are based upon the requirements of Governmental Accounting Standards Board (GASB) Statement No. 10, which requires that a liability for claims be reported if there is a probability that a liability has been incurred and the amount of loss can be reasonably estimated. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of pay-outs, and other economic factors.
An Other Post-Employee Benefits (OPEB) Trust has been established to segregate assets of the TOMMIF fund to fund the liability associated with retiree health benefits in accordance with GASB guidelines. In 2015, GASB released new accounting standards,”GASB 74/75” for public OPEB and participating employers. Per these new standards, the Net OPEB liability will be noted on the employer’s financial statements, just like pension funds.


Manchester records its liability, auto and property loss costs and administrative expenses within
its Manchester Self-Insurance Program (MSIP).

Manchester purchases large deductible insurance policies from Connecticut Interlocal Risk Management Association (CIRMA) for its Workers Compensation, Property, and Liability exposures. The Liability policies include coverage for Auto Liability, General Liability, Law Enforcement Liability, Public Officials Liability, and School Leaders Liability. Manchester retains the first $500,000 for WC claims, the first $250,000 for Liability claims, and the first $50,000 for Property claims. The Town has purchased large deductible policies for these coverages through CIRMA since 7/1/2002. Prior to 7/1/2002, Manchester self-insured its insurance liabilities and purchased excess insurance policies through CIRMA.
Manchester self-insures its liability for Heart and Hypertension exposure and CIRMA provides third party claims administration services.