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Media Advisory: Nov. 1, 2008
BWC Board of Directors Lowers Rates for Public Employers
COLUMBUS – Many of Ohio’s public employers are expected to see an overall drop in workers’ compensation
premium rates following today’s decision by the Ohio Bureau of Workers’ Compensation (BWC) Board of Directors
to decrease rates by an average of five percent beginning January 1, 2009.
“As they face shrinking budgets, these savings will allow Ohio’s public employers to reinvest tax dollars
into programs and services to benefit their respective communities,” said BWC Administrator Marsha Ryan. “We
encourage public employers to continue integrating safety into their workplaces on an ongoing basis in order
to further reduce their workers’ compensation costs.”
Public Employer Taxing Districts (PECs) represent approximately 3,900 Ohio cities, counties, townships,
villages, schools and special districts. Rates for individual PEC entities will differ based on their own
claims history. Some will see slight increases while others will see decreases, but the total overall change
will be a decrease of five percent from the current year. The board is expected vote on rule changes
to set the actual rates for each PEC industry group at its November meeting.
BWC investment professionals provided the Board’s Investment Committee with an update on the agency’s
investments, providing an overview of the strength of BWC funds during the recent challenges to the investment
markets. The unaudited figures for all BWC funds combined currently stand at approximately $15.3 billion,
and the estimated unaudited portfolio return for the calendar year to date is approximately -14.3%.
“We’re in good shape with our cash and have adequate reserves to continue taking care of injured worker
claims without disruption,” said Director Bob Smith, chair of the board’s Investment Committee. “BWC has a
long-term investment strategy that allows for stable, consistent growth over a longer period of time.”
In other board activities, Deloitte Consulting, Inc. on Thursday presented the board’s Actuarial Committee
with its third report. The independent consulting group is performing a year-long study to measure the
performance of Ohio’s workers’ compensation system and compare Ohio to other state and private compensation
systems. Thursday’s presentation covered topics including: state agency rate calculations; the
Retrospective Rating Program; the Safety Grant Program; Division of Safety & Hygiene Programs;
MCO effectiveness and medical payment procedures; impact of rates on frequency, severity and loss ratios;
and handicap reimbursement. The study will conclude in December.
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Maria Smith
614-728-8045 or 614-205-5709
mariasmith@bwc.state.oh.us
Melissa Vince
614-466-2956 or 614-202-2329
melissa.vince@bwc.state.oh.us
Ohio Bureau of Workers’ Compensation Board of Directors
Chairman William Lhota, SI Employers | Charles Bryan, Actuary | David Caldwell, Employee
Organizations | Alison Falls, Investment & Securities | Thomas Pitts, Employees | Kenneth
Haffey, CPA | James Harris, Employee Organizations | James Hummel, Large Employers | Jim
Matesich, Small Employers | Larry Price, Public | Robert Smith, Investment & Securities
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