The consolidation plan is extremely complex with claims departments, IT departments, underwriting, safety, human resources, executive offices and other departments moving every which way within the State of California and its numerous offices, but it can be simply said that six statewide offices will be closed, which all currently house claims departments; and these claims departments will be moved to other locations.

The Oxnard, Glendale, Burbank, Commerce, San Jose, and Santa Rosa locations will all entirely be closed down.

The Oxnard location will be vacated in the 3rd Quarter of 2012, and the claims from that location will be moved to Bakersfield and Pleasanton. 

The Glendale location will also be vacated in the 3rd Quarter of 2012, and the claims will be moved to Stockton, Fresno, and Santa Ana. 

The Burbank location will be vacated sooner, in the 3rd Quarter of 2011, and the claims will be moved to Fresno and Redding. 

Fresno will be a large facility, containing both claims and underwriting.  Most locations will tend to specialize in one type of department, but the larger service centers will be fewer, like Fresno, but will contain more than one type of department.  The larger centers are being located in the most economically viable areas, where real estate and salaries are most affordable. 

The Commerce location is soon to be vacated, in the 1st Quarter of 2011, just weeks away.  Their state contracts claims are moving to Santa Ana. 

The San Jose location will be vacated in the 3rd Quarter of 2012.

The Santa Rosa location will also be vacated in the 3rd Quarter of 2012. 

In the home office building in San Francisco, the executives will move to smaller space in San Francisco.  The Finance Department will locate some staff to smaller space in San Francisco, too, and will move remaining staff to Pleasanton. 

The home office personnel will be handled in the same manner: some staff will be relocated to smaller space in San Francisco and remaining staff will move to Pleasanton. 

State Fund grew substantially between 2001 and 2005 when its share of the California market increased to more than 50% of premiums following the liquidation of some two dozen private carriers. But since then, State Comp’s market share has dropped to less than 19%, as more carriers returned to the market while the overall amount of written premiums in the state declined.

Now State Comp continues to struggle with its loss adjustment expense. In fiscal year 2009 it had a combined ratio — the sum of loss and expense ratios divided by written premium — of 161.5%, which is considered unsustainable.  The consolidations and changes are anticipated to save 200 million in expenses per year.  Although all employees are being offered relocation packages, realistically, all cannot be expected to relocate. This appears to be a planned strategy to avoid actual lay-offs.