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Media Advisory: Sept. 25, 2009
BWC Board of Directors Lowers Premiums for Public Employers
Board also levels playing field for group sponsors, hires professional manager of international equities
COLUMBUS – The Ohio Bureau of Workers’ Compensation (BWC) Board of Directors today lowered workers’ compensation
premiums for Ohio’s Public Employer Taxing Districts (PECs) by an average of 17 percent beginning January 1, 2010.
PECs represent approximately 3,800 Ohio cities, counties, townships, villages, schools and special taxing districts.
“Looking at the current workers’ compensation insurance costs, payroll trends, decreasing claim occurrences and other
economic factors, we’ve determined a 17-percent reduction is appropriate,” said BWC Administrator Marsha Ryan. “At a time
when public employers are working with very limited resources and revenue, I’m pleased we are able to provide some economic
relief by lowering their workers’ compensation costs.”
Rates for individual PEC entities will differ based on their individual claims history. While the total, overall
change will be a decrease of 17 percent from the current year, some employers may see a slight increase while others
will experience decreases. The board is expected to vote on rule changes to set the actual rates for each PEC industry
group at its November meeting.
In other business, the board modified rules related to the marketing activities of group rating program sponsors.
These include third-party administrators and associations that provide services to employers who qualify for group
discounts. Today’s rule modification prohibits any sponsor or affiliated organization from marketing discounts higher
than can be realistically achieved.
"This rule change levels the playing field for all group sponsors by restricting marketing practices that could
mislead employers seeking group membership," said Chuck Bryan, Chair of the board’s Actuarial Committee.
The board also took a significant step in implementing a new strategy for diversifying both fixed income and equity
investments within the State Insurance Fund (SIF). The board accepted the proposal of Barclays Global Investors (BGI)
to serve as BWC’s passive indexed manager of the Fund’s international equities. BGI will manage all non-US international
equities benchmarked to the ACWI (All Country World Index). This asset class is targeted to represent 10 percent of SIF
invested assets, or approximately $1.6 billion.
Finally, the board created its fifth committee to align services with the needs of injured workers, employers and
stakeholders. The new Medical Services Committee will manage the development of strategic policy for the provision
of safe, cost-effective medical and vocational rehabilitation services for the benefit of injured workers and employers.
Members serving on the Medical Services Committee include directors Pitts, Hummel and Harris, who will serve as chair.
The committee will hold its first meeting in October.
The next BWC Board of Directors meeting will be held Friday, October 30, 2009 at 8 a.m. in Room 3, Level 2 of the
William Green Building, located at 30 W. Spring St., Columbus.
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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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