CFO Sink Announces $100 Million Savings for Businesses from Drop in Trust Fund Assessment Rate
TALLAHASSEE – Florida CFO Alex Sink announced today that Florida businesses will save an estimated $100 million as a result of her recent order reducing the assessment rate for the Special Disability Trust Fund (SDTF), or Workers’ Compensation Second-Injury Fund. The STDF encourages employers to hire and reemploy the physically disabled by reducing employer premiums and excess liability expense. The new assessment rate, effective July 1, 2010, will be 1.46 percent, down from the 4.52 percent rate in effect since July 1994.
“In these trying economic times, our businesses need all the help they can get in reducing costs,” said CFO Sink. “This rate reduction will produce direct and significant savings for Florida’s employers and potentially could lead to more jobs. I am pleased I was able to do this for our businesses, and I will continue to do all I can to find ways to protect our economy.”
As a result of the lower SDTF rate, the National Council on Compensation Insurance, Inc. (NCCI) submitted a filing with the Office of Insurance Regulation to reduce workers’ compensation rates by 4.2%, effective July 1, 2010. Inclusive of this rate filing, Florida’s workers’ compensation rates will have been reduced by approximately 64.7% since the 2003 workers’ compensation reform.
The fund is administered by the Department of Financial Services’ Division of Workers’ Compensation. The SDTF was created to encourage the employment, reemployment, and accommodation of the physically disabled by reducing premiums for an employer who reemploys an injured worker, as well as to decrease litigation between carriers on apportionment issues and to protect employers from excess liability for compensation and medical expense. While the Fund was abolished as of December 31, 1997, the SDTF continues to operate in run-off mode, reimbursing employers or their workers’ compensation carrier for existing eligible claims. The SDTF assessment rate is set pursuant to a statutory formula established in section 440.49(9), F.S.
For more information about CFO Sink’s Division of Workers’ Compensation go to http://www.myfloridacfo.com/wc/
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