Why projected insurance savings will not be refunded to residents

SETTING IT STRAIGHT

The GRF Board reported in February that community-wide insurance renewal costs for 2026 are $1.8 million under budget projections, thanks to proactive GRF staff negotiations with the insurance broker among other reasons. Some residents have questioned why the projected savings won’t be immediately refunded to Mutuals.

The total insurance package covers both the Mutuals and GRF, so the savings against budget is divided across all of the entities in Leisure World. Even though the insurance package came in under budget, there is no guarantee that it will remain under budget as the fiscal year progresses. By the end of the year, actual spending will determine if there is an overall surplus. If there ends up being a surplus, the GRF Board will determine what to do with that surplus in accordance with GRF’s policies; while those policies give an option to return money to Mutual Corporations, they do not give an option for a direct refund to shareholders. Individual Mutuals will similarly evaluate their financials at the end of their fiscal years.