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The Second Injury Fund operations are financed by assessments
on all Connecticut employers. The State Treasurer, as
Custodian of the Fund, establishes the assessment rate on or
before May 1st of each year.
Insured employers pay a surcharge on their workers’ compensation insurance policies based on “direct written premiums” calculated and issued by insurance companies who collect and remit this assessment to the Fund. The assessment for self-insured employers is based on “paid losses” for medical and indemnity benefits incurred in the prior calendar year.
There were 4 assessments made in Fiscal Year 2015 on insured employers totaling $33.8 million. Self-insured employers were assessed 4 times during
Fiscal Year 2015 totaling $6.2 million for a combined assessment on all
Connecticut employers of $40 million for Fiscal Year 2015.
Assessment rates, which are used to determine how much Connecticut businesses will pay to the Fund, have either remained the same or been reduced over the past
seventeen years.
For insurers, the assessment rate for fiscal year 2015 will remain at 2.75%.
The rate is 2.2% for assigned risk policies and 3.25% for self-insured
employers.
During the Nappier administration stricter oversight allowed a
reduction of rates charged to Connecticut businesses for
assessments paid to the Treasury’s Second Injury Fund. The
cumulative effect of all the rate reductions since 1999 is a net
savings of $1.1 billion for Connecticut businesses, which includes
$110 million in projected savings during Fiscal Year 2016. This reflects a total reduction of 72.5% in rates assessed for insurance companies and 77.6% for self-insured companies.
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