Please note that the rates on the November 20, 2008 Press News Release have been corrected.
The California Department of Industrial Relations (DIR) has issued 2009 assessment rates for User Funding, the Uninsured Employer Benefit Trust Fund, the Subsequent Injury Benefit Trust Fund, the Occupational Safety & Health Fund, and the Workers’ Comp Fraud Account. State law requires insurers to collect money from employers to cover all of the Division of Workers’ Compensation budget, pay benefits to injured workers whose employers were uninsured, provide for those who suffer from previous and serious permanent disabilities and impairments, pay for mandatory occupational safety and health programs, and fund the Department of Insurance and local District Attorney’s workers’ comp antifraud efforts. DIR notes that insurers must apply the following rates against policyholders’ estimated annual “assessable premium” for workers’ comp policies incepting January 1, 2009 through December 31, 2009:
| 2009 | WC Administration Revolving Fund Assessment/User Funding (LC § 62.5): | 0.013583 |
| 2009 | Uninsured Employers Benefit Trust Fund Assessment (per LC § 62.5): | 0.002241 |
| 2009 | Subsequent Injuries Benefits Trust Fund Assessment (per LC § 62.5): | 0.000827 |
| 2009 | Occupational Safety & Health Fund (per LC § 62.5): | 0.001185 |
| 2009 | WC Fraud Account Assessment (per LC § 62.6): | 0.003956 |
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, 2009; the balance is due on or before April 1, 2009.
To cover their share of the 2009 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.
| 2009 | WC Administration Revolving Fund Assessment (User Funding per LC § 62.5): | 0.016569 |
| 2009 | Uninsured Employers Benefit Trust Fund Assessment (per LC § 62.5): | 0.002029 |
| 2009 | Subsequent Injuries Benefits Trust Fund Assessment (per LC § 62.5): | 0.001019 |
| 2009 | Occupational Safety & Health Fund (per LC § 62.5): | 0.003353 |
| 2009 | WC Fraud Account Assessment (per LC § 62.6): | 0.006267 |
DIR is mailing letters and invoices to insurers and self-insured employers showing their share of the assessments. All questions regarding the assessments should go to DIR Manager Amadeo Urbano 510-286-7083 or DWC analyst Naomi Carter at (510) 286-7087.