Sysco Claims Reimbursement Fund

Recently, SI employers have received information from the Ohio Bureau of Worker’s Compensation related to opting out of the Claims Reimbursement Fund. Currently, when a contested matter is eventually ruled in an SI company's favor, they can request reimbursement from the Ohio Bureau of Workers’ Compensation surplus fund. All monies paid for indemnity and medical expenses would be reimbursed, however, the claimant is not required to pay back any benefits they receive. This has been funded by an assessment of 3.6% of paid compensation. All self-insured employers pay into this fund.

Effective June 30, 2007, SI employers have the ability to withdraw from this fund and discontinue paying any further contributions. Unlike the handicap fund and rehabilitation fund, the employer is not limited to reimbursement based upon what they have put in. The current assessment for this fund is 3.6% of paid compensation. This percentage will certainly increase if a majority of the self-insured employers opt out of this fund.

SI employers who chooses not to opt out now can do so later. This can be done every six months. Employers can opt out in January for a July 1 opt out date or in July for a January 1 opt out date. If the employer currently has a case pending that will result in reimbursements in excess of their contribution, they may choose to opt out at a later date. Although, once an employer opts out, their decision is irrevocable.

We suggest that each SI employer calculate how much this assessment currently is of their annual assessment bill. To do so, take the total compensation figure from the last SI-40 and multiply this figure by 3.6%. This represents the assessment. This figure should be compared to any potential recovery the employer might have for future recoveries. Keep in mind, this percentage will likely increase, potentially dramatically, based upon how many employers opt out. Lastly, if the employer does opt out, the BWC will process any reimbursement request as long as it is filed by 6/30/07.