State Regulators Release 2013 California Workers Comp User Funding and Assessment Rates

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.