Connecticut has eliminated the projected 20-year debt of its Second Injury Fund for workers’ compensation claimants in just six years by recently paying off the final $48 million, the state treasurer announced.
In the past six years, the program’s unfunded liabilities have been reduced by 44 percent, from $838 million in 1999 to $465 million currently. Treasurer Denise Nappier noted that the Treasury’s assessment audit program has played an important role. Some $50 million in underpaid assessments has been recovered.
Nappier said that the fund has also managed to reduce rates charged to businesses to the lowest levels in more than a decade. Rates for insurance companies that represent employers are dropping by 38.5 percent and self-insured employers by a 27.2 percent reduction, saving businesses $29 million annually. Effective July 1, rates for insurance companies dropped from 6.5 percent to 4.0 percent for regular policies and from 5.2 percent to 3.2 percent for assigned risk policies. Concurrently, the rate for self-insured employers will decrease from 11.6 percent to 8.4 percent.
Nappier and business leaders also worked with lawmakers to change state laws to ensure that businesses making a good-faith effort to comply with state law are not penalized unnecessarily.
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