CFO SINK ORDERS 50 PERCENT REDUCTION IN WORKERS’ COMP ADMIN TRUST FUND ASSESSMENT RATE  

Florida Chief Financial Officer Alex Sink ordered a 50 percent cut in the 2008 Workers’ Compensation Administration Trust Fund assessment rate.  This reduction is projected to result in as much as $19 million in savings that can be passed on to Florida employers. 

“During the past five years, Florida’s healthy workers’ compensation system has led to the addition of 28 new carriers writing workers’ compensation in our state,” said CFO Sink.  “A strong economy and tougher compliance efforts have generated significant premium growth, making these reductions to the workers’ compensation trust fund assessment rate possible.” 

Florida law requires an annual review of assessments that workers’ compensation carriers and self-insurers pay into the Workers’ Compensation Administration Trust Fund (WCATF) to administer the state’s workers’ compensation system.  The fund pays for the operation of the Department of Financial Services’ Division of Workers’ Compensation.  Other programs funded through the WCATF include the Division of Insurance Fraud’s workers’ compensation enforcement activities, the Office of the Judges of Compensation Claims, Medical Services administered by the Agency for Health Care Administration, Vocational Rehabilitation administered by the Department of Education, and Child Labor regulation administered by the Department of Business and Professional Regulation. 

CFO Sink’s order requires an assessment rate reduction from .50 percent to .25 percent of assessable workers’ compensation premiums.  Statute requires that this change be reflected in the next workers’ compensation rate filings approved by the Office of Insurance Regulation after January 1, 2008.  The assessment rate has dropped dramatically since 2002 when it was 2.56 percent.  

Since the Legislature passed significant reforms in 2003, Florida’s workers’ compensation rates -- what carriers charge employers -- have dropped a cumulative 40 percent.  Those Florida employers that are required to secure workers’ compensation coverage for their employees have saved hundreds of millions of dollars on their premiums since 2003.   Meanwhile, thousands more workers are now covered under the system and the average penalty assessed against non-compliant employers has risen from $7,500 to nearly $26,000, stimulating greater compliance.

MELBOURNE/PALM BAY AREA CHAMBER OF COMMERCE WELCOMES CFO SINK

CFO Alex Sink spoke to the Melbourne-Palm Bay Area Chamber of Commerce, advocating a federal catastrophe fund that would help stabilize Florida's reeling insurance market. In a recent visit to Washington, D.C., CFO Sink spoke with members of Congress on the issue. The House of Representatives is more willing than the Senate to set up the fund, she said.

To read more about it in Florida Today, click here.

BANKER OBDULIO PIEDRA ELECTED CHAIR OF FINANCIAL LITERACY COUNCIL

Florida Chief Financial Officer Alex Sink announced the election of Obdulio Piedra as chair of the Financial Literacy Council. As Market President of Great Florida Bank in Miami, Piedra has extensive experience in financial matters and is focused on helping Floridians make better financial decisions.

“Obdulio Piedra will serve the people of Florida well as chairman of the state’s Financial Literacy Council,” said CFO Sink who oversees the Department of Financial Services. “His experience as bank president will assist the council in identifying ways in which the state can better inform and assist Floridians about their finances.”

The Financial Literacy Council held its first meeting in Tallahassee on June 25, 2007. Authorized in 2006 by House Bill 825, the council was created to study the financial problems that affect consumers, particularly young people, seniors, working adults and small business owners, which arise from a lack of basic knowledge of financial issues. The council will also develop recommendations and raise funds to develop programs and resources aimed at increasing financial literacy among Floridians.

CFO Sink will use the Financial Literacy Council to help educate Floridians about important financial issues, such as avoiding excessive debt, the importance of saving, making sound investment decisions and planning for retirement. Recent news reports illustrate that American consumers are living paycheck to paycheck and spending every dollar they earn. In fact, the U.S. government recently calculated consumer savings at the lowest levels since the Great Depression. In essence, too many consumers are spending more than they earn.

For more information on the Financial Literacy Council, please visit www.myfloridamoney.com.

HARDEE COUNTY GREETS CFO SINK

On Wednesday, June 27th, Chief Financial Officer Alex Sink visited Wauchula in Hardee County to speak with elected officials, including Sheriff J. Loran Cogburn,  Supervisor of Elections Jeff Ussery, County Manager Lex Albritton, Chamber of Commerce President Jama Abbott and Fire Chief Michael Choate.

CFO Sink met with local officials to discuss issues important to Hardee county residents including the recently passed property tax legislation, unclaimed property, state fire issues and more.

Why not attend a hurricane expo? It is worth the time to learn the steps necessary to prepare for possible windstorms in your area.

Experts gather together in one location to present innovative and valuable information on the many facets of hurricane preparedness.

The Treasure Coast Square Mall planned its 2007 Hurricane Expo well in advance, never anticipating that the Treasure Coast would feel the effects of Tropical Storm Barry that weekend. Several inches of rain fell but many residents decided it was worth the effort to attend the exposition. Bags of information about hurricane preparation and samples from companies touting their storm products were available, along with demonstrations and door prizes. Attendees met and listened to local TV newscasters and meteorologists discuss storm forecasting.

A Florida Department of Financial Services specialist talked about participation in the “My Safe Florida Home” wind inspection and matching grant program. Residents noted that they have received their wind inspections and were anticipating the arrival of  their inspection reports. These reports will not only detail ways to further fortify their homes against windstorm damage but also outline potential hurricane insurance premium savings.

When hardening your home, a first line of defense would be storm shutters and fortified garage doors and the expo had plenty on display.

Government emergency management officials from state, county and local consumer service agencies were available to answer questions. The Red Cross was recruiting volunteers to provide aid in the event of a disaster.

Emphasis was given on the importance of making emergency plans for your pets' safety in case of evacuation - even if your pet is a horse!

Find a hurricane expo near you on the FLDFS Web site at
http://www.MyFloridaCFO.com/Consumers/ConsumerOutReach/eventsbycategory.asp.

The current list of upcoming hurricane preparedness events is posted below and additional events for 2007 are being planned.

Hope to see you there!