DIR ANNOUNCES 2020 ASSESSMENT RATES FOR SIX FUNDS
The Department of Industrial Relations (DIR) has determined the 2020 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, 2020 through December 31, 2020:
| 2020 WC Administration Revolving Fund Assessment: |
0.017040 |
| 2020 Uninsured Employers Benefits Trust Fund Assessment: | 0.001274 |
| 2020 Subsequent Injuries Benefits Trust Fund Assessment: | 0.004829 |
| 2020 Occupational Safety and Health Fund Assessment: |
0.003918 |
| 2020 Labor Enforcement and Compliance Fund Assessment: | 0.003813 |
| 2020 WC Fraud Account Assessment | 0.003349 |
DIR included the assessment methodology in a memo posted today, which notes “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 on or before January 1, 2020; the balance is due on or before April 1, 2020.
To cover their share of the assessments self-insured employers and legally uninsured employers should apply the following rates against the total amount of WC indemnity paid by their organization.
| 2020 WC Administration Revolving Fund Assessment: |
0.050135 |
| 2020 Uninsured Employers Benefits Trust Fund Assessment: | 0.003786 |
| 2020 Subsequent Injuries Benefits Trust Fund Assessment: | 0.014570 |
| 2020 Occupational Safety and Health Fund Assessment: |
0.012390 |
| 2020 Labor Enforcement and Compliance Fund Assessment: | 0.012420 |
| 2020 WC Fraud Account Assessment | 0.009805 |
More details are in DIR’s 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 2020 surcharges and assessments can be answered by DIR Accounting Administrator Naomi Carter (NCarter@dir.ca.gov) at (415) 557-1020.