"2012 Assessment Rates: WC Administration Revolving Fund, Uninsured Employers, Subsequent Injuries, Occupational Safety & Health, Labor Enforcement & Compliance, And WC Anti-Fraud Funds"
The Department of Industrial Relations (DIR) has announced the 2012 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 insureds’ estimated annual assessable premium for policies incepting January 1, 2012 through December 31, 2012:
| 2012 | WC Administration Revolving Fund Assessment/User Funding: | 0.009669 |
| 2012 | Uninsured Employers Benefits Trust Fund Assessment: | 0.001362 |
| 2012 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.001255 |
| 2012 | Occupational Safety & Health Fund: | 0.002350 |
| 2012 | Labor Enforcement & Compliance Fund : | 0.002380 |
| 2012 | 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 1st 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 2nd installment, payments may be made by Electronic Funds Transfer (EFT) or by check. The memo mailed by DIR this week includes more details on EFT payment and a link will be provided with the next invoice billing with information for those who want to pay via EFT.
To cover their portion of the 2012 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.
| 2012 | WC Administration Revolving Fund Assessment: | 0.023739 |
| 2012 | Uninsured Employers Benefits Trust Fund Assessment: | 0.003293 |
| 2012 | Subsequent Injuries Benefits Trust Fund Assessment: | 0.003379 |
| 2012 | Occupational Safety & Health Fund: | 0.006643 |
| 2012 | Labor Enforcement & Compliance Fund : | 0.007212 |
| 2012 | WC Fraud Account Assessment: | 0.008003 |
More details are included in a memo that DIR is mailing to workers’ compensation insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Questions about the 2012 surcharges and assessments can be answered by DIR Staff Services Manager Amadeo Urbano at (510) 286-7083 or DWC analyst Naomi Carter at (510) 286-7087.
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