North Dakota Employers Likely to See Workers’ Compensation Bills Increase
For some North Dakota employers, July 1 will not be a pleasant day. North Dakota Governor John Hoeven agreed last week with a state advisory board’s consensus of the Workplace Safety and Insurance Agency (WSI) stating the investment surplus was too small to justify a dividend.
Board members ruled against a $9 million dividend, which would have lessened insurance bills by approximately 1.2%. With no dividend in place, it is expected a number of employers will see their insurance bills increase next Wednesday (July 1).
North Dakota businesses are required to purchase the insurance to provide coverage for nearly 20,000 employers. WSI sent a letter to employers earlier this year noting the reduced surplus would likely mean premium increases. According to WSI estimates, the new premiums will likely bring in $156 million from July 1 through June 30, 2010.
Over the last four years, dividend credits of anywhere from 40% to 62% were provided to qualified North Dakota employers. Since 2004, WSI declared more than $270 million dollars in premium dividend credits.
In 2005, the legislative assembly set in motion WSI’s fund requirements to land in the area of 120%-140% of actuarially established discounted reserves. As of the end of February 2009, the WSI fund was at 126%. In recent years, dividends were only declared if the fund was higher than 140%.
WSI said state employers can utilize a number of new safety initiatives to help offset the potential loss of premium dividend credits. Putting Safety to Work programs help decrease the number of claims and lead to lower premiums – as much as up to 25% for qualifying employers. (workersxzcompxzkit).
Matching grants can also be added to help in acquiring safety equipment designed to eliminate workplace hazards.
Author: Robert Elliott, J.D.
Click on these links to try it for yourself.
WC Calculator: www.ReduceYourWorkersComp.com/calculator.php
TD Calculator: www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
WC 101: www.ReduceYourWorkersComp.com/workers_comp.php
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
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