Florida Workers’ Comp Admin, Second-Injury Fund Fees to Remain Steady for 2023

July 5, 2022
New You can now listen to Insurance Journal articles!

The surcharge for Florida’s Workers’ Compensation Administration Trust Fund and for the second-injury fund will remain the same for 2023 – at near-historically low rates.

The Division of Workers’ Compensation announced that the assessment on compensation insurers and self-insurers will stay at 0.79% of net premiums written. The revenue is used to pay for the DWC and workers’ comp administration functions in the state. The assessment for the Special Disability Trust Fund will remain at 0.40%.

Both assessments have remained unchanged since 2019. The administrative fund fee had dropped steadily for the seven years before that, when it was 1.75% of net premium. The lowest amount seen since 1978 was 0.25%, seen in 2008 and 2009, the division reported.

The second-injury fund charge had dropped steadily from 2010 to 2019. That fund stopped accepting new claims in 1997 but must continue to assess insurers until all claims are paid. As of January 2021, the fund owed $226 in undiscounted, unfunded liabilities.

The division did not indicate the dollar amount of revenue expected to be produced by the assessments in 2023. The DWC’s 2021 Annual Report, the most recent available, shows that the administration fee brought in almost $44 million and the special disability fund surcharge produced about $15 million. Some of the administrative fund assessment revenue is allowed to be transferred to other state agencies.

The assessments can be paid through the state’s web-based START system.

Topics Florida Workers' Compensation

Was this article valuable?

Here are more articles you may enjoy.