The Texas Cotton Ginners’ Trust marked several milestones in 2004, celebrating its 10th anniversary and making changes that provide a brighter future.

Governed by a nine-member Board of Trustees – all Texas ginners – the Trust provides workers’ compensation coverage to 70 percent of the gins in Texas as well as cotton warehouses and other cotton related businesses across the state.

The Trust’s Producer Program offers coverage for farming operations of producers who gin with members of the Trust.

The Trust celebrated 10 years of providing stable, cost effective coverage to its members in 2004, and marked the occasion by forming the first Self Insurance Group for private employers in Texas.

The Trust and the Texas Cotton Ginners’ Association successfully sought legislation in 2003 that allows Texas employers to self insure their workers’ compensation as a group. This new law will benefit all small and medium size employers in Texas by providing an option to gain greater control of their workers’ compensation insurance, which is a significant cost for any business.

The change to self insurance offers the Trust a significant advantage as it provides greater stability, better control and lower cost. The Trust expects to save more than $1 million in this first year, operating as a Self Insurance Group and reducing the cost of coverage to members by up to 10 percent.

The Trust’s financial strength continued to improve in 2004. Assets increased significantly and exceeded $16 million by the end of the year.

The Trust continues to provide a stable source of insurance and continues to reduce the cost of insurance for its members. More than $4 million in excess funding was returned to member companies since the Trust began operation.

The trustees expect to declare a distribution payable at the Annual Meeting on Friday, April 7. The 2005 distribution marks the eighth consecutive year that a distribution was paid to members and is expected to be the largest return of member premium to date.

The Trust continues to improve services to members. In 2004 the Trust:

• Continued sponsorship of safety seminars offered by the Texas Cotton Ginners’ Association to its members, increasing the number of seminars to make it easier for members to attend;

• Increased on-site safety and loss control visits designed to help members prevent serious injury to their employees; and

• Provided on-site safety training sessions presented in Spanish by gin employees familiar with the daily operation and hazards in gins.

The 11th Annual Meeting of the Trust is scheduled for 2:30 p.m. on Friday, April 7, following the Trade Show and preceding the Association’s award presentation dinner. The meeting agenda will provide an update on Trust activities and a report on the financial position of the Trust. Three of the nine trustee positions will be up for election at the meeting.

The Trust will once again be located in Booth No. 1 at this year’s Trade Show. Please visit and learn more about the Trust’s plans for 2005.