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The California Department of Industrial Relations (DIR) has calculated the 2012 assessments that state law requires workers' compensation insurers to collect from policyholders in order to fund the budget of the state Division of Workers' Compensation (DWC) and five related programs established 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 must apply the following rates against insureds' estimated annual assessable premium for policies incepting January 1, 2012 through December 31, 2012:
2012 WC Administration Revolving Fund Assessment/User Funding: 0.0096692012 Uninsured Employers Benefits Trust Fund Assessment: 0.0013622012 Subsequent Injuries Benefits Trust Fund Assessment: 0.0012552012 Occupational Safety & Health Fund: 0.0023502012 Labor Enforcement & Compliance Fund: 0.0023802012 WC Fraud Account Assessment: 0.002648
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, 2012; the balance is due on or before April 1, 2012. Effective with the second installment, payments may be made by Electronic Funds Transfer (EFT) or by check. A memo mailed by DIR this week to payors has more details on EFT payment and a link will be provided with the next invoice providing further information for those who want to pay via EFT.
To cover their portion of the 2012 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.
2012 WC Administration Revolving Fund Assessment: 0.0237392012 Uninsured Employers Benefits Trust Fund Assessment: 0.0032932012 Subsequent Injuries Benefits Trust Fund Assessment: 0.0033792012 Occupational Safety & Health Fund: 0.0066432012 Labor Enforcement & Compliance Fund: 0.0072122012 WC Fraud Account Assessment: 0.008003
The DIR has issued invoices to all California workers' compensation insurers and self-insured employers noting each company's share of the 2012 assessments and surcharges, along with additional details. Questions about the 2012 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.
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