DIR ANNOUNCES 2022 ASSESSMENT RATES FOR SIX FUNDS
The Department of Industrial Relations (DIR) has determined the 2022 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, 2022 through December 31, 2022:
| 2022 WC Administration Revolving Fund Assessment: | 0.019277 |
| 2022 Uninsured Employers Benefits Trust Fund Assessment: | 0.001455 |
| 2022 Subsequent Injuries Benefits Trust Fund Assessment: | 0.017451 |
| 2022 Occupational Safety & Health Fund Assessment: | 0.009177 |
| 2022 Labor Enforcement & Compliance Fund Assessment: | 0.007102 |
| 2022 WC Fraud Account Assessment: | 0.004856 |
DIR noted the assessment methodology in a memo posted today, which says that for single carriers that are not part of an insurer group and that reported data to the WCIRB on an individual company basis for 2020, total DWP for assessment purposes is the amount reported for CY 2020 to the WCIRB, “which reflects the premiums charged to policyholders with the exception that it excludes the impact of deductible credits, retrospective rating adjustments, and policyholder dividends.” For insurers that are part of an insurer reporting group that reported data to the WCIRB for 2020, total DWP for assessment purposes is “the product of (a) the total 2020 written premium reported to the WCIRB on the aforementioned basis and (b) the ratio of the company’s 2020 California written premium as reported in the 2020 Statutory Annual Statement (these amounts include the effect of deductible credits and retrospective rating adjustments) to the total 2020 Statutory Annual Statement of California written premium reported for your insurer group as a whole.”
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.
| 2022 WC Administration Revolving Fund Assessment: | 0.031386 |
| 2022 Uninsured Employers Benefits Trust Fund Assessment: | 0.002301 |
| 2022 Subsequent Injuries Benefits Trust Fund Assessment: | 0.034845 |
| 2022 Occupational Safety & Health Fund Assessment: | 0.016639 |
| 2022 Labor Enforcement & Compliance Fund Assessment: | 0.012606 |
| 2022 WC Fraud Account Assessment: | 0.008178 |
DIR’s memo is posted under “What’s New” 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. Insurers with questions may email them to DIR Accounting Administrator Naomi Carter (NCarter@dir.ca.gov