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 surchargesn 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 selfinsured 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.