Employers in Washington are bracing for a double digit workers compensation rate increase for 2010. The Department of Labor and Industries has indicated that since
June 30, 2008 its contingency reserve has decreased $1.06 billion. This reduction in reserve is due in part to realized and unrealized investment losses as a result of the turmoil within the capital markets. Additionally, Labor and Industries has seen an increase in benefit liabilities of $610 million.
What does this mean for Retro employers? With the recent “mis” calculation of retro by the Department of Labor and Industries, and a policy change in retro, which will further erode the average state refund, Retro employers will have to work that much harder to realize substantial refunds. By continuing to provide light duty and Kept on Salary (KOS) to your injured workers, and maintaining a safe work environment to prevent injuries, Retro employers can possibly offset some of this hike in rates.
Light duty and
KOS may not seem financially feasible right now considering the economy, but with such a high increase in general workers comp rates, contractors cannot afford to let any retro refunds slip away. While a double digit rate increase is proposed, we have seen in the past that Labor and Industries will open up forums to discuss the increase. We are encouraging everyone to attend these forums to voice their opinions. For more information contact ABC’s Vice President of Safety & Education
Ann Jarvisat (800) 640-7789
.