Compendium of Budget Information for the 2013 General Session
Business, Economic Development, & Labor Appropriations Subcommittee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Line Item: Uninsured Employers Fund Function The Uninsured Employers Fund (UEF) was established in 1994 to provide benefits to injured workers whose employers (1) did not maintain the statutorily required workers compensation insurance and (2) otherwise cannot pay because of insolvency. Background The Legislature appropriated funds from the UEF to the Labor Commission to pay for expenses related to the UEF and operational expenses for the Industrial Accidents Division until FY 2011. At that time, appropriations to the Labor Commission from the UEF ended and the Industrial Accidents Restricted Account was established to fund the operational activities of the Adjudication and Industrial Accidents Division. Statutory Authority UCA 34A-2-704 creates and authorizes UEF. The law also outlines administrative duties for the fund. Funding Detail Revenues come from a surcharge on Workers' Compensation premium assessments collected by the State Tax Commission (currently .05%), in addition to an assessment to employers that are self-insured for workers compensation. Penalties imposed against employers who fail to maintain workers compensation insurance are also deposited to the UEF. Money collected is invested with the State Treasurer where interest is earned. The Labor Commission works closely with actuaries and the Workers Compensation Advisory Council, made up equally of employer and employee representatives, to establish the assessment rate for the UEF. This surcharge is administered by calendar year. For CY 2013 the council recommended a .1 percent increase to the rate, from .05 to .15 percent. The chart below graphs the surcharge rate since 2008.
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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.