Home2011 ASSESSMENT RATES: WC Administration Revolving Fund, Uninsured Employers, Subsequent Injuries, Occupational Safety & Health, Labor Enforcement & Compliance, And WC Anti-Fraud Funds

Contact:

Bob Young
510-251-9470

2011 ASSESSMENT RATES: WC Administration Revolving Fund, Uninsured Employers, Subsequent Injuries, Occupational Safety & Health, Labor Enforcement & Compliance, And WC Anti-Fraud Funds

The California Department of Industrial Relations (DIR) has calculated the 2011 assessments that state law requires workers’ compensation insurers collect from policyholders to cover the budget of the state Division of Workers’ Compensation (DWC), and five related programs mandated by state law. The assessments and surcharges cover the Workers’ Compensation Administration Revolving Fund; the Uninsured Employers Benefits Trust (UEBT) Fund; the Subsequent Injuries Benefits Trust (SIBT) Fund; the Occupational Safety and Health Fund; the Labor Enforcement & Compliance Fund; and the Workers’ Compensation Fraud Account.

Insurers must apply the following rates against insureds’ estimated annual assessable premium for policies incepting January 1, 2011 through December 31, 2011:

 2011  WC Administration Revolving Fund Assessment/User Funding:  0.014721
 2011  Uninsured Employers Benefit Trust Fund Assessment:  0.004101
 2011  Subsequent Injuries Benefits Trust Fund Assessment:  0.001776
 2011  Occupational Safety & Health Fund:  0.002467
 2011  Labor Enforcement & Compliance Fund:  0.002315
 2011  WC Fraud Account Assessment:  0.004348

Assessable premium is the premium an insured is charged after all rating adjustments (experience rating, schedule rating, premium discounts, expense constants, retrospective rating, etc.) except adjustments resulting from the application of deductible plans or the return of policyholder dividends. Insurers must advance the money to the state on behalf of policyholders, then recoup the funds via policy surcharges and assessments. The 1st installment is due to the state on or before January 1, 2011; the balance is due on or before April 1, 2011.

To cover their portion of the 2011 assessments, self-insured employers should apply the following rates against the total amount of WC indemnity paid and reported on their Self-Insurer’s Annual Report

 2011  WC Administration Revolving Fund Assessment:  0.022070
 2011  Uninsured Employers Benefit Trust Fund Assessment:  0.008843
 2011  Subsequent Injuries Benefits Trust Fund Assessment:  0.003563
 2011  Occupational Safety & Health Fund:  0.007450
 2011  Labor Enforcement & Compliance Fund:  0.006959
 2011  WC Fraud Account Assessment:  0.005931

More details are included in a memo that DIR has issued to workers’ compensation insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Any questions about the 2011 surcharges and assessments should go to DIR Staff Services Manager Amadeo Urbano at (510) 286-7083 or DWC analyst Naomi Carter at (510) 286-7087.