Media Advisory: July 25, 2008

BWC Board of Directors Updated on Recovered Assets

Lost Coin Fund investments back in the hands of BWC

COLUMBUS – The Ohio Bureau of Workers’ Compensation (BWC) Board of Directors received an update on the status of the BWC Coin Fund. Administrator Marsha Ryan informed the board that the process of liquidating assets related to the Coin Fund scandal is nearly complete.

BWC has successfully recouped slightly more than the $50 million in original principal investments. Funds were recovered through collections from asset sales, including the sale of rare coins and collectibles purchased with BWC funds. The agency recovered other funds through negotiated settlements. The final large-scale transaction occurred recently with the recovery of $7.6 million from the liquidation of stocks by Numismatic Guaranty Corporation of America (NGC), a coin company in which Thomas W. Noe has an ownership interest.

“The efforts to recover these assets on behalf of Ohio’s employers and injured workers should be recognized as an important accomplishment on the road to recovery for BWC,” said Administrator Ryan. “BWC’s investment team, the investigators, lawyers, and liquidators deserve recognition for their diligence and hard work in recouping these funds. Today, we are building upon these recovery efforts and moving forward in our comprehensive, customer-focused reform to fundamentally improve Ohio’s workers’ compensation system.”

BWC expects to reinvest the NGC proceeds in its S&P 500 equity index fund. An additional $2 - $3 million in future settlements is still pending. The estimated cost involved in recovering BWC assets is more than $6 million.

Today’s meeting marks the completion of the board’s first year of service. It performed a self-assessment with an average rating of 4.6 on five-point scale and set action steps for continued improvement.

In addition, the board of directors announced it will hold its next quarterly public forum on Sept. 25. The forum will be on self-insurance with discussion to focus on:

• Self-insured best practices for safety, transitional work and early intervention programs;
• Improvements to benefits delivery and cost designed to make Ohio's self-insured workers' comp program the most efficient, regionally and nationally; and
• Examining the economic viability of the Self-insured Employers Guarantee Fund.

Those wishing to address the board on these topics are encouraged to register by completing a short form at ohiobwc.com by Sept. 15, 2008. On-site registration will be available the day of the forum.

The board also received an update on the status of registration for Workers’ Compensation University (WCU). WCU offers free courses related to the workers’ compensation process. Many classes provide attendees with continuing education credits. BWC will hold WCU in six Ohio cities through September. A detail of course offerings and registration is available online at wcu2008.com.

For information about BWC’s plan to restore operational excellence, log on to ohiobwc.com/reform.

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Contact: Maria Smith
614-728-8045 or 614-205-5709
Maria.Smith@bwc.state.oh.us