Sacramento, CA (workersCompensation.com) - The Office of Self Insurance Plans (OSIP) has posted to its website emergency regulations to implement portions of Senate Bill 863's mandate to establish actuarial based security deposit collateral amounts.
These new regulations will implement SB 863's requirement for all private self-insured employers and groups to obtain an actuarial report to more accurately establish the organization's California workers' compensation liability exposure. The regulations will further define new methods in how the OSIP establishes security deposit collateral requirements based on this additional information.
These provisions of SB 863 are required to become effective on Jan. 1, 2013 in order for OSIP to be able to properly establish security deposit amounts for 2013. These regulations do not eliminate the requirements for self-insured employers and third party administrators (TPAs) to submit annual reports on or before March 1st of each calendar year.
Under emergency rulemaking, these proposed emergency regulations will become effective on Jan. 1, 2013. In order for these regulations to be made permanent, OSIP will additionally engage in regular rulemaking for these regulations. Under the regular rulemaking process, OSIP will conduct a 45-day public comment period allowing the public to have input into the proposed permanent regulations.
Copies of the Emergency Regulation package can be found on OSIP's regulations page. Questions or comments about these regulations can be sent to the OSIP rulemaking coordinator at OSIPRulemaking@dir.ca.gov.
California currently has 7,952 employers protecting more than 4 million workers representing a total payroll of $173 billion through self-insurance workers' compensation plans. One of every four California workers is protected by a self-insurance plan.
Self-insured employers in California represent large and midsized private companies, industry groups, and public entities such as city, county, state and school districts.
More information of California's workers' compensation self-insurance program is available on OSIP's website.
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