Pennsylvania Governor Rendell Announces Another Decrease In Workers’ Compensation Costs

                               

Harrisburg, PA (CompNewsNetwork) - Pennsylvania Governor Edward G. Rendell  announced a 10.22 percent overall decrease in workers' compensation costs that will result in $250 million in savings for Pennsylvania employers.
 
“At a time when more Pennsylvanians are working than ever before, we have seen significant decreases in workers’ compensation claim frequency,” Governor Rendell said. “I am pleased to announce that workers’ compensation insurers may be reducing their rates due to our approval of the Pennsylvania Compensation Rating Bureau’s recent filing to decrease costs an average of 10.22 percent overall.
 
“Right now, Pennsylvania employers are benefiting from the excellent job they are doing to provide safe workplaces for their employees. Additionally, our workers’ compensation insurance system remains strong and competitive. Today’s announcement is a win-win for business.
 
“We are committed to our ongoing efforts to stimulate the economy, while driving down the cost of doing business in Pennsylvania,” the Governor added. “Five years ago, we implemented the Work Safe PA initiative to give businesses and employees the information and technical assistance they need to enhance workplace safety practices. And it’s working – today we see the tangible benefits of that effort in the form of lower workers’ compensation costs.”
 
Currently, there are over 7,500 businesses enrolled in the Department of Labor & Industry’s Certified Workplace Safety Committee program with committees covering more than 1 million workers. Businesses with state-certified workplace safety committees receive a five percent discount on their workers’ compensation premiums, in addition to the average 10.22 percent decrease announced today.
 
The reduced workers’ compensation insurance costs will save the state’s employers approximately $250 million on future premiums.  This is the fourth time Pennsylvania has reduced workers’ compensation costs since Governor Rendell took office. With this most recent decrease, employers will have realized more than $750 million in savings in six years.
 
The overall 10.22 percent loss cost decrease announced today is an average. Costs and savings will vary by type of business, as well as specific claims history. Some employers will see savings, others may not.
 
The $250 million in workers’ compensation savings for Pennsylvania businesses comes a week after Governor Rendell presented his budget proposals that reflects a business tax cut of $100 million in 2009 with the continued phase out of the capital stock and franchise tax. 
 
In addition, employers will see their 2008 unemployment compensation taxes reduced an estimated $141 million.
 
Governor Rendell’s Protecting Our Progress initiatives will build on the advancements made during the past five years and invest in Pennsylvania’s infrastructure, communities and citizens to continue creating jobs and growing the economy.
 
For more information on Governor Rendell’s budget proposal, visit www.pa.gov.
 

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