2014 User Funding Assessments
The Department of Industrial Relations (DIR) has calculated the 2014 assessments and surcharges for user funding (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 their insureds’ estimated annual assessable premium for policies incepting January 1, 2014 through December 31, 2014:
| 2014 | WC Administration Revolving Fund Assessment/User Funding: | 0.012247 |
| 2014 | Uninsured Employers Benefit Trust Fund Assessment: | 0.001603 |
| 2014 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.001291 |
| 2014 | Occupational Safety & Health Fund: | 0.002166 |
| 2014 | Labor Enforcement & Compliance Fund: | 0.002452 |
| 2014 | WC Fraud Account Assessment: | 0.002544 |
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, 2014; the balance is due on or before April 1, 2014.
To cover their portion of the 2014 assessments, self-insured employers and California legally uninsured employers should apply the following rates against the total amount of WC indemnity paid by their organization.
| 2014 | WC Administration Revolving Fund Assessment/User Funding: | 0.041342 |
| 2014 | Uninsured Employers Benefit Trust Fund Assessment: | 0.006202 |
| 2014 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.004461 |
| 2014 | Occupational Safety & Health Fund: | 0.007302 |
| 2014 | Labor Enforcement & Compliance Fund: | 0.008186 |
| 2014 | WC Fraud Account Assessment: | 0.008934 |
More details are included in a DWC Newsline posted under "What’s New" at http://www.dir.ca.gov/dwc and in the memo (http://www.dir.ca.gov/dwc/DWC_RevolvingFundAssessment/13UFund.pdf that DIR mailed to workers’ compensation insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Questions about the 2014 surcharges and assessments can be answered by DIR Accounting Administrator Amadeo Urbano (AUrbano@dir.ca.gov ) at (415) 703-4014; or DWC analyst Naomi Carter (NCarter@dir.ca.gov) at (415) 557-1020.
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