COBI 2014 - Employers Reinsurance Fund

Compendium of Budget Information for the 2014 General Session

Business, Economic Development, and 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 (1) a surcharge on employers' Workers' Compensation premiums collected by the State Tax Commission (2) an assessment to self-insured employers, and (3) 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 2.9 percent rate for CY 2014. This recommendation does not change the rate from its current position.

Sources of Finance (click linked fund name for more info)
Interest Income
Dedicated Credits - Investments
Premium Tax Collections
Premium Tax Payments
Change in Claim Reserves
Beginning Fund Balance
Ending Fund Balance
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$1,138,600	$834,500	$1,063,400	$975,000	$1,070,000	($70,000)	$1,000,000	$0	$1,000,000
$382,600	$313,200	($62,800)	($134,700)	($63,000)	$63,000	$0	$0	$0
$15,480,700	$13,923,000	$12,698,300	$13,217,800	$12,700,000	$550,000	$13,250,000	$0	$13,250,000
($6,005,000)	($1,124,000)	($414,000)	$345,000	($425,000)	$775,000	$350,000	$0	$350,000
$14,763,700	($8,611,700)	$14,034,300	$1,229,300	$14,000,000	($12,500,000)	$1,500,000	$0	$1,500,000
($50,756,000)	($56,916,000)	($73,526,000)	($66,242,400)	($58,996,900)	($10,307,400)	($69,304,300)	$0	($69,304,300)
$56,916,000	$73,526,000	$66,243,100	$69,304,300	$51,750,700	$20,329,400	$72,080,100	$0	$72,080,100
$31,920,600	$21,945,000	$20,036,300	$18,694,300	$20,035,800	($1,160,000)	$18,875,800	$0	$18,875,800

Programs: (click linked program name to drill-down)
Employers Reinsurance Fund
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$31,920,600	$21,945,000	$20,036,300	$18,694,300	$20,035,800	($1,160,000)	$18,875,800	$0	$18,875,800
$31,920,600	$21,945,000	$20,036,300	$18,694,300	$20,035,800	($1,160,000)	$18,875,800	$0	$18,875,800

Categories of Expenditure (mouse-over category name for definition)
Current Expense
DP Current Expense
Other Charges/Pass Thru
Transfers
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$389,500	$323,000	$334,100	$199,900	$333,900	($133,500)	$200,400	$0	$200,400
$200	$200	$300	$500	$300	$100	$400	$0	$400
$31,470,600	$21,554,800	$19,628,300	$18,420,300	$19,628,000	($1,028,000)	$18,600,000	$0	$18,600,000
$60,300	$67,000	$73,600	$73,600	$73,600	$1,400	$75,000	$0	$75,000
$31,920,600	$21,945,000	$20,036,300	$18,694,300	$20,035,800	($1,160,000)	$18,875,800	$0	$18,875,800

Other Indicators
Change in Fund Balance

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
($6,160,100)	($16,609,500)	$7,282,900	($3,061,900)	$7,246,200	($7,246,200)	$0	($2,775,800)	($2,775,800)

Subcommittee Table of Contents

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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.