WSI reduces compensation rates, declares 50% dividend for 2018-2019 policy year
Workers Compensation Rates to be Reduced on Average by 7.4% for 2018-19
WSI’s consulting actuaries completed the WSI 2018-19 annual premium rate review. The 2018/19 indications were for a statewide average rate decrease of 7.4 percent. The WSI Board recommended the actuarial recommendation and that recommendation was approved by the Governor.
All premiums for the 2018/19 reporting period will be calculated using a payroll wage cap of $35,500 which has increased from $35,100 per covered worker for the 2017/18 reporting period. The net effect of the 7.4 percent average statewide rate decrease combined with the change in the payroll cap will result in an average statewide premium decrease of approximately 6.8 percent.
Proposed rate changes for individual rate classifications vary, ranging anywhere from a decrease of 22.4 percent to an increase of 7.6 percent. Under this proposal, rates for 116 rate classifications will be decreased, rates for 19 classifications will be increased and rates for 6 rate classifications will remain the same.
WSI Declares 50% Dividend for 2018-19 Policy Year
During the June 2018 WSI Board meeting, the Board of Directors made a recommendation to issue a 50% premium dividend credit to policyholders. This recommendation has been approved by the Governor.
The dividend credit will be applied against policyholders renewing during the FY 2018-19, who are in good standing with the agency and are not minimum premium accounts. The credit will reflect 50% of the prior year’s premium less safety discounts, ensuring no account total is less than $250 after the dividend credit is applied.
Favorable investment returns contributed to increased surplus growth resulting in the fund exceeding statutory surplus requirements. When surplus requirements are exceeded, dividends are required.
Including this recent dividend, total dividends issued in 13 out of the last 14 years will amount to approximately $1.25 billion.