OR Proposed 2010 WC Premium Assessment Rates

Portland, OR (CompNewsNetwork) - The Oregon Department of Consumer and Business Services has proposed that the 2010 workers' compensation premium assessment remain at 4.6 percent for insurers and 4.8 percent for self insured employers and self insured employer groups. 

The recommended single year rate recommendation and the multiple year rates, developed for planning purposes only, take into account these objectives according to the following formula:

Required Premium Assessment Rate = {Planned and Forecasted Expenditures and Transfers – (Forecasted Investment Income + Forecasted Other Revenue)} / Forecasted Assessable Premium Base

The formula clearly shows that finding the ratio of planned (legislatively approved) expenditures and transfers net of non-premium assessment revenue and the assessable (earned) premium base determines the required rate. In the case of the current analysis, the planned expenditures consist of the agency's 2009-11 biennium legislatively adopted budget (LAB) adjusted for the following major components: (1) savings reflected in the 1st quarter 2009-11 DCBS management action plan. This includes anticipated savings from 10-14 furlough days for every DCBS employee during the 2009-11 biennium and a step-freeze effective from September 1, 2009 through August 31, 2010.; and, (2) updated expenditure forecasts for the Non-Complying Employer Program.

The attached file has more information about the proposed premium assessment, notice of a reduction in the workers' compensation "pure" premium rate, and notice that the Workers' Benefit Fund assessment will remain unchanged at 2.8 cents per hour worked in 2010. 

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