DIR Announces 2017 User Funding Assessment Rates
The Department of Industrial Relations (DIR) has determined the 2017 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, 2017 through December 31, 2017:
| 2017 | WC Administration Revolving Fund Assessment: | 0.003128 |
| 2017 | Uninsured Employers Benefit Trust Fund Assessment: | 0.000721 |
| 2017 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.001335 |
| 2017 | Occupational Safety & Health Fund: | 0.002305 |
| 2017 | Labor Enforcement & Compliance Fund: | 0.001918 |
| 2017 | WC Fraud Account Assessment: | 0.001675 |
DIR included the assessment methodology in the memo it issued this week. Assessable premium is defined as the premium an insured is charged after all rating adjustments (experience rating, schedule rating, premium discounts, expense constants, etc.) except adjustments resulting from the application of deductible plans, retrospective rating 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, 2017; the balance is due on or before April 1, 2017.
To cover their portion of the 2017 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.
| 2017 | WC Administration Revolving Fund Assessment: | 0.025226 |
| 2017 | Uninsured Employers Benefit Trust Fund Assessment: | 0.004707 |
| 2017 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.006927 |
| 2017 | Occupational Safety & Health Fund: | 0.012111 |
| 2017 | Labor Enforcement & Compliance Fund: | 0.010479 |
| 2017 | WC Fraud Account Assessment: | 0.009262 |
More details are in the DIR memo dated November 21 which is posted in the What’s News section of the DWC website at http://www.dir.ca.gov/dwc/. DIR has mailed the memo to workers’ comp insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Questions about the 2017 surcharges and assessments can be answered by DIR Accounting Administrator Amadeo Urbano (AUrbano@dir.ca.gov) at (415) 703-4283; or DWC analyst Naomi Carter (NCarter@dir.ca.gov) at (415) 557-1020.
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