2009 Assessment Rates: User Funding, Uninsured Employers Fund, Subsequent Injuries Fund, Occupational Safety & Health Fund & WC Anti-Fraud Fund
The Department of Industrial Relations (DIR) has issued the 2009 assessments and surcharges for user funding (Workers’ Compensation Administration Revolving Fund) and workers’ compensation anti-fraud efforts, as well as the Uninsured Employers Benefits Trust (UEBT) Fund, the Subsequent Injuries Benefits Trust (SIBT) Fund, and the new Occupational Safety and Health Fund, mandated by AB 1389 which Governor Schwarzenegger signed last month. Insurers must apply the following rates against insureds’ estimated annual assessable premium for policies incepting January 1, 2009 through December 31, 2009:
| 2009 | WC Administration Revolving Fund Assessment/User Funding (LC § 62.5): | 0.013583 |
| 2009 | Uninsured Employers Benefit Trust Fund Assessment (per LC § 62.5): | 0.002241 |
| 2009 | Subsequent Injuries Benefits Trust Fund Assessment (per LC § 62.5): | 0.000827 |
| 2009 | Occupational Safety & Health Fund (per LC § 62.5): | 0.001185 |
| 2009 | WC Fraud Account Assessment (per LC § 62.6): | 0.003956 |
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, 2009; the balance is due on or before April 1, 2009.
| 2009 | WC Administration Revolving Fund Assessment (User Funding per LC § 62.5): | 0.016569 |
| 2009 | Uninsured Employers Benefit Trust Fund Assessment (per LC § 62.5): | 0.002029 |
| 2009 | Subsequent Injuries Benefits Trust Fund Assessment (per LC § 62.5): | 0.001019 |
| 2009 | Occupational Safety & Health Fund (per LC § 62.5): | 0.003353 |
| 2009 | WC Fraud Account Assessment (per LC § 62.6): | 0.006267 |
To cover their portion of ‘09 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.
More details are included in the attached memo which DIR is mailing to workers’ comp insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Any questions about the 2009 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.
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