DIR ANNOUNCES 2019 ASSESSMENT RATES FOR SIX FUNDS

The Department of Industrial Relations (DIR) has determined the 2019 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, 2019 through December 31, 2019: 

DIR included the assessment methodology in a memo it released today.  The memo notes that “Assessable premium is 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 first installment is due to the state on or before January 1, 2019; the balance is due on or before April 1, 2019.

To cover their portion of the 2019 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 DIR’s November 29 memo, which is posted in the “What’s New” section of the DWC website at http://www.dir.ca.gov/dwc/.  DIR is mailing 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 2019 surcharges and assessments can be answered by DIR Accounting Administrator Naomi Carter (NCarter@dir.ca.gov) at (415) 557-1020.