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The Special Compensation Fund Releases Minnesota’s 2013 Assessment

The Special Compensation Fund, or SCF, is what funds the workers compensation Minnesota workers receive when they have been injured on the job.

There are many things that are funded by the SCF, such as 70 percent of the assessment dollars going toward second-injury and supplementary programs. The Workers’ Compensation Division of the Department of Labor and Industry and other departments receive funding for operating expenses from the fund as well.

However, the assessment has changed since legislation in 2002 changed it. Companies no longer have to file semi-annual reports for the assessment. Instead, they can file their reports annually.

2013 showed that there is a downward trend in the amount of funding that is required. This downward trend coincides with the assessment rate. In fact, it dropped 4 percent from 2012. It has dropped a total of $9.5 million since 2008.

The amount of funding that is issued by the Special Compensation Fund determines how much funding is available for individuals to receive. When funding is decreased, it can affect the level of scrutiny that cases receive.

In the assessment, insurers and self-insurers divide the liability by the ratio of their indemnity payments in 2012. This sets the basis for the assessment so that increases or decreases in the assessment can be accurately determined.

The insurer premium surcharge rate that is applied in order to determine the SCF assessment in 2013 was 7.5211 percent. This rate is determined by dividing the insurer portion of the SCF state-fiscal-year liability in 2014 by the statistical reporting in 2012. The self-insured assessment rate was a bit higher at 19.9725 percent. It is divided in exactly the same way as those who are not self-insured.

These assessments can have a rather significant impact on those looking for benefits. The funding provided affects the money that is or isn’t received by those needing benefits to help them get by after a work-related injury.


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