COBI 2013 - Employers Reinsurance Fund

Compendium of Budget Information for the 2013 General Session

Business, Economic Development, & Labor
Appropriations Subcommittee

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Agency: Labor Commission

Line Item: Employers Reinsurance Fund

Function

The Employers Reinsurance fund (ERF) pays certain workers compensation benefits to eligible workers (and their dependents) as a result of work accidents that occurred prior to July 1994. Administrative costs may be paid from the fund, but unrelated expenses are not allowed.

Statutory Authority

UCA 34A-2-702 creates and authorizes ERF.

UCA 34A-2-703 outlines liability and payments from ERF in the event an employee incurs an additional impairment that is completely disabling.

Funding Detail

Revenues come from a surcharge on employers' Workers' Compensation premiums collected by the State Tax Commission (currently 3%), plus an assessment to self-insured employers. Money that is collected is invested with the State Treasurer where interest is earned.

The Labor Commission works closely with actuaries and the Workers Compensation Advisory Council each year to set the premium rates for the ERF. Based on input from the actuary, this Council has recommended a .1 percent decrease in the rate, from 3 percent to 2.9 percent for CY 2013.

Sources of Finance (click linked fund name for more info)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
Dedicated Credits Revenue	$0	$0	$0	$0	$21,842,500
Interest Income	$3,427,800	$1,138,600	$834,500	$1,063,400	$0
Dedicated Credits - Investments	$456,000	$382,600	$313,200	($62,800)	$0
Premium Tax Collections	$40,468,900	$15,480,700	$13,923,000	$12,698,300	$0
Premium Tax Payments	($1,067,000)	($6,005,000)	($1,124,000)	($414,000)	$0
Change in Claim Reserves	($32,191,500)	$14,763,700	($8,611,700)	$14,034,300	$0
Transfers	$3,004,200	$0	$0	$0	$0
Beginning Fund Balance	($45,437,000)	($50,756,000)	($56,916,000)	($73,526,000)	$0
Ending Fund Balance	$50,756,000	$56,916,000	$73,526,000	$66,243,100	$0
Total	$19,417,400	$31,920,600	$21,945,000	$20,036,300	$21,842,500

Programs: (click linked program name to drill-down)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
Employers Reinsurance Fund	$19,417,400	$31,920,600	$21,945,000	$20,036,300	$21,842,500
Total	$19,417,400	$31,920,600	$21,945,000	$20,036,300	$21,842,500

Categories of Expenditure (mouse-over category name for definition)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
Current Expense	$176,600	$389,500	$323,000	$334,100	$0
DP Current Expense	$0	$200	$200	$300	$0
Other Charges/Pass Thru	$19,167,800	$31,470,600	$21,554,800	$19,628,300	$21,842,500
Transfers	$73,000	$60,300	$67,000	$73,600	$0
Total	$19,417,400	$31,920,600	$21,945,000	$20,036,300	$21,842,500

Other Indicators	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
Change in Fund Balance	(5,315,200)	(6,160,100)	(16,609,500)	(7,282,900)	0

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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.