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Media Advisory: Dec. 18, 2008
BWC Board of Directors Approves Payment Relief For Many Employers
COLUMBUS – The Ohio Bureau of Workers’ Compensation’s (BWC) Board of Directors took action to provide many
Ohio employers more time to pay premiums, and allow employers conducting business outside of the state to reduce
their workers’ compensation insurance premiums. A report to the BWC Board of Directors on the agency’s investments
also revealed improved performance of its investment portfolio.
The board approved a rule change for the 50/50 payment program, which enables Ohio businesses that pay online
to split their yearly premiums into two payments. The change allows businesses to pay only 50 percent of their
premium costs by February 28 and pay the remaining 50 percent by June 1. Second payments were previously due by
May 1. 17,000 employers currently participate in the program.
“We know that countless of Ohio employers are under tremendous pressure to meet all of their financial
obligations,” said BWC Administrator Marsha Ryan. “Increased flexibility for employers in meeting their
workers’ compensation obligations will provide immediate relief.”
The board also approved rule changes related to Senate Bill 334, which went into effect in September, and allows
businesses to avoid premium payment to BWC for work done in other states and covered by another state’s policy.
Generally, the law also requires out-of-state employers, with employees working in Ohio, to provide workers’
compensation coverage for their workers when they come into Ohio to perform their duties.
As a result of the rule changes, Ohio employers must report to BWC the payroll reported to the other state’s
insurer, however, they are not required to pay BWC premium on the other state’s payroll. BWC will also now
recognize the coverage of an out-of-state employer working in Ohio to the extent that state will honor the
BWC coverage for Ohio employers temporarily working in their state. Out-of state coverage will be honored
for a period of up to 90 days.
Once employers notify BWC of their Others States coverage, they can take advantage of this law change when they
file their payroll report and pay their premiums for the Jan. 1 to June 30, 2009 payroll reporting period.
In other business, board members discussed the performance of BWC’s investment portfolio in the past month
following recent challenges to the investment markets. Unaudited figures for all BWC invested funds reflect
a portfolio appreciation of 8.2% for the month of December through yesterday. As a result of strong performance
of the bond portfolio, the BWC’s entire investment portfolio has increased in value approximately 13% since the
end of October. Calendar year to date unaudited performance return of BWC’s investments is approximately -2%.
“BWC’s investment portfolio remains stable due to our conservative approach to managing recent turmoil in the
markets,” said Ryan. “Our Board of Directors has worked closely with BWC investment staff to maintain a strategy
to hold investments for the long term and stay on course to protect our assets. Most importantly, we have
maintained uninterrupted service to Ohio employers and injured workers throughout this market volatility.”
The next Board of Directors meeting will be Friday, January 23, 2009, in Room 3, Level 2 of the William Green
Building, located at 30 W. Spring St., Columbus.
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Keary McCarthy
614-644-8944 or 614-312-7272
mccarthy.keary@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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