The California Department of Industrial Relations (DIR) has determined the 2013 assessments that state law requires workers’ compensation insurers to collect from policyholders to cover the budget of the state Division of Workers’ Compensation (DWC) and five related programs set up by state lawmakers. 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 should apply the following rates against their policyholders’ estimated annual assessable premium for policies incepting January 1, 2013 through December 31, 2013:
| 2013 | WC Administration Revolving Fund Assessment/User Funding: | 0.013704 |
| 2013 | Uninsured Employers Benefits Trust Fund Assessment: | 0.003410 |
| 2013 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.001707 |
| 2013 | Occupational Safety & Health Fund Assessment: | 0.002859 |
| 2013 | Labor Enforcement & Compliance Fund Assessment: | 0.002747 |
| 2013 | WC Fraud Account Assessment: | 0.003881 |
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 first installment is due to the state on or before January 1, 2013; the balance is due on or before April 1, 2013, and payments may be made by Electronic Funds Transfer (EFT) or by check.
To cover their portion of the 2013 assessments, self-insured employers must apply the following rates against the total amount of WC indemnity paid and reported on their Self-Insurer’s Annual Report.
| 2013 | WC Administration Revolving Fund Assessment: | 0.034375 |
| 2013 | Uninsured Employers Benefits Trust Fund Assessment: | 0.008565 |
| 2013 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.004354 |
| 2013 | Occupational Safety & Health Fund Assessment: | 0.006926 |
| 2013 | Labor Enforcement & Compliance Fund Assessment: | 0.006823 |
| 2013 | WC Fraud Account Assessment: | 0.009275 |
The DIR has issued invoices to all California workers’ compensation insurers and self-insured employers noting each company’s share of the 2013 assessments and surcharges, along with additional details. Questions about the 2013 surcharges and assessments should be directed to DIR Staff Services Manager Amadeo Urbano at (510) 286-7083 or DWC analyst Naomi Carter at (510) 286-7087.