DIR Releases 2015 Assessment Rates:

The Department of Industrial Relations (DIR) has calculated the 2015 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, 2015 through December 31, 2015:

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, 2015; the balance is due on or before April 1, 2015.

To cover their portion of the 2015 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.  

More details are in the DIR’s November 26 memos, posted at http://www.cwci.org/document.php?file=2548.pdf. DIR is mailing the memo to workers’ compensation insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Questions about the 2015 surcharges and assessments can be answered by DIR Accounting Administrator II Amadeo Urbano (AUrbano@dir.ca.gov) at (415) 703-4283.

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