DIR RELEASES 2016 ASSESSMENT RATES
The Department of Industrial Relations (DIR) has calculated the 2016 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, 2016 through December 31, 2016:
| 2016 WC Administration Revolving Fund Assessment/User Funding: | 0.003433 |
| 2016 Uninsured Employers Benefit Trust Fund Assessment: | 0.000532 |
| 2016 Subsequent Injuries Benefits Trust Fund Assessment: | 0.001191 |
| 2016 Occupational Safety & Health Fund: | 0.001925 |
| 2016 Labor Enforcement & Compliance Fund: | 0.001215 |
| 2016 WC Fraud Account Assessment: | 0.001741 |
DIR included the assessment methodology in the memo it issued this week. Assessable premium is defined as 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 1st installment is due to the state on or before January 1, 2016; the balance is due on or before April 1, 2016.
To cover their portion of the 2016 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.
| 2016 WC Administration Revolving Fund Assessment: | 0.028913 |
| 2016 Uninsured Employers Benefit Trust Fund Assessment: | 0.005736 |
| 2016 Subsequent Injuries Benefits Trust Fund Assessment: | 0.006585 |
| 2016 Occupational Safety & Health Fund: | 0.010986 |
| 2016 Labor Enforcement & Compliance Fund: | 0.007962 |
| 2016 WC Fraud Account Assessment: | 0.011155 |
More details are in the DIR memo dated November 17 which is posted in the What’s News section of the DWC website at http://www.dir.ca.gov/dwc/. DIR is mailing the memo to workers’ compensation insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Questions about the 2016 surcharges and assessments can be answered by DIR Accounting Administrator Amadeo Urbano (AUrbano@dir.ca.gov) at (415) 703-4283; or DWC analyst Naomi Carter (NCarter@dir.ca.gov) at (415) 557-1020.