COBI 2013 - Uninsured Employers 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: 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.

Sources of Finance (click linked fund name for more info)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
Dedicated Credits Revenue	$2,737,300	$2,361,100	$2,419,200	$2,310,700	$3,083,500
Interest Income	$409,900	$123,500	$106,600	$139,500	$0
Dedicated Credits - Investments	$57,500	$44,600	$54,200	($11,200)	$0
Premium Tax Collections	$1,591,700	$313,900	$202,300	$209,900	$0
Premium Tax Payments	$0	$0	$0	($6,000)	$0
Change in Claim Reserves	($791,100)	($3,090,000)	($1,014,900)	($1,221,400)	$0
Transfers	$0	$3,115,000	$173,900	$0	$0
Beginning Fund Balance	$11,320,000	$11,131,000	$10,101,000	$8,980,400	$0
Ending Fund Balance	($11,131,000)	($10,101,000)	($8,980,400)	($6,589,400)	$0
Total	$4,194,300	$3,898,100	$3,061,900	$3,812,500	$3,083,500

Programs: (click linked program name to drill-down)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
Uninsured Employers Fund	$4,194,300	$3,898,100	$3,061,900	$3,812,500	$3,083,500
Total	$4,194,300	$3,898,100	$3,061,900	$3,812,500	$3,083,500

Categories of Expenditure (mouse-over category name for definition)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
In-state Travel	$900	$0	$3,800	$300	$0
Current Expense	$319,100	$347,500	$382,300	$431,000	$0
DP Current Expense	$0	$200	$0	$3,100	$0
Other Charges/Pass Thru	$2,379,200	$2,042,200	$2,675,800	$3,378,100	$3,083,500
Transfers	$1,495,100	$1,508,200	$0	$0	$0
Total	$4,194,300	$3,898,100	$3,061,900	$3,812,500	$3,083,500

Other Indicators	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
Change in Fund Balance	(188,700)	(1,030,300)	(1,120,900)	2,392,000	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.