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Minnesota Department of Labor and Industry

Workers' compensation -- Special Compensation Fund assessment 'true-up'



Results of the reconciliation and final determination of the 2014 SCF assessment 'true-up'

Minnesota Statutes 176.129, subd. 2a, now provides for an adjustment, or "true-up," of the assessment paid by insurers for deposit into the Special Compensation Fund (SCF).

Currently, the commissioner estimates each insurer's share of the assessment using the insurer's earned standard premium from the previous calendar year. The commissioner must later make a final determination of the amount owed based on the insurer's actual earned standard workers' compensation premium for the current year, after those figures become available.

Insurer premium surcharge rate

The original insurer premium surcharge rate applied for the purpose of estimating the 2014 Special Compensation Fund assessment was 7.6631 percent. The rate was determined by dividing the insurer portion of the Special Compensation Fund state-fiscal-year 2015 liability ($61,472,797), by the 2013 designated statistical reporting pure premium reported by all insurers to the Minnesota Workers' Compensation Insurers Association ($802,192,426).

The revised insurer premium surcharge rate applied for the purpose of determining the 2014 Special Compensation Fund assessment was 7.5457 percent. The rate was determined by dividing the insurer portion of the Special Compensation Fund state-fiscal-year 2015 liability ($61,472,797), by the 2014 designated statistical reporting pure premium reported by all insurers to the Minnesota Workers' Compensation Insurers Association ($814,672,970).

 

Estimated liabilities

DSR pure premium

Insurer surcharge rate

Insurers estimated rate $61,472,797 $802,192,426 7.6631 percent
Insurers revised rate $61,472,797 $814,672,970 7.5457 percent

As a result of this "true-up," 100 insurers owed an additional $3,093,410 in assessment to the Special Compensation Fund and 82 insurers were refunded $3,093,410 in overpaid assessment.

Invoices for additional funds were mailed to insurers by Nov. 15, with payment due Dec. 15. Refunds were processed by Dec. 1.

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