An effort in the Buckeye State to make safer workplaces does not go unnoticed.
The Ohio Bureau of Workers Compensation (BWC) would return an estimated $126.1 million to 3,800 local public employers under Another Billion Back, a proposal recently announced by Gov. John Kasich and Administrator/CEO Steve Buehrer.
In addition to the $1 billion rebate, the plan calls for increased funding for workplace safety grants and the creation of several initiatives to enhance the safety, health and wellness of Ohio’s workforce.
“We’re pleased we again have the opportunity to send money back to local governments across the state that are working daily to provide essential services in their communities,” said Buehrer. “We’ve targeted lower costs for all Ohio employers, and public employers are already paying $70 million less than they were just four years ago. We encourage all employers to consider setting aside their rebate for investments in workplace safety to protect their workers from injury and further reduce workers compensation costs.”
The amount each eligible public employer would receive equals approximately 60 percent of their billed workers comp premium from the 2012 policy year. Out of the $126.1 million that could be returned, cities would receive the largest portion of the rebate – approximately $46.2 million – followed by schools receiving $44.3 million, counties receiving $18.7 million and townships receiving $7.8 million.
Strong Management of BWC’s Investments
The rebate is possible due to strong management of BWC’s investments with an annualized return of 8.9 percent over the past three fiscal years, including 13.4 percent in 2014.
Additionally, net assets (State Insurance Fund) exceeded $7.7 billion, and the funding ratio is significantly greater than the target guidelines established by the Board for financial stability in 2008.
The entire proposal includes:
• The one-time rebate of $1 billion for private employers and public-taxing districts;
• An increase in BWC’s commitment to safety by up to $35 million over the next two years;
• The creation of several new safety initiatives, including $1 million to expand firefighter training to help keep communities and firefighters safer.
If approved by the BWC Board of Directors on Sept. 26, checks could be mailed as early as October. Some of Ohio’s local governments and schools are self-insured and do not pay into the BWC system, and are therefore not impacted by the rebate plan.
Over the last four years, BWC has taken several steps to cut costs and support safe workplaces for public employer taxing districts by:
• Providing more than $250 million in rebates;
• Reducing rates to their lowest point in 30 years, resulting in the collection of $70 million less in premiums compared to 2011;
• Awarding more than $8 million in safety grants.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: [email protected].
©2014 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law.
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