Table of Contents
IWCC
Operations Fund
Rate Adjustment Fund
Second Injury Fund
Self-Insurers Security Fund
The IWCC collects
four different assessments.
IWCC
Operations Fund
Illinois
Compiled Statutes, Ch. 820, Para. 305, Sec. 4d; Ch. 215, Para. 5,
Sec. 416
The
IWCC Operations Fund was created in 2003 to pay for the administrative
costs of the agency. Each year, employers pay a 1.01% surcharge
on workers’ compensation insurance premiums, while self-insured
employers pay an assessment of .0075% of payroll. Payment is due
30 days after the assessment is sent.
Insurers.
The Illinois Department of Financial and Professional Regulation
collects the 1.01% surcharge from employers that buy insurance.
It sends out an assessment bill each July.
Contact:
John O’Brian,
IDFPR Insurance Division, 217/782-0055
Self-Insurers.
The IWCC collects the payroll assessment of .0075% from self-insurers,
based on the total payroll paid for a calendar year, as reported
to the IWCC Self-Insurance Division.
The IWCC sent out the FY2009 assessment bill on August 15, 2008.
If you did not receive an assessment notice, the 2009 fee is .0075%
of the 2006 actual wages reported in the "Self-Insurers' Annual
Privilege Renewal."
Payment
is due by September 15, 2008. Please make checks payable to the
Illinois Workers' Compensation Commission and mail to:
Fiscal Department
Illinois Workers' Compensation Commission
100 W. Randolph St. #8-328
Chicago, IL 60601
If the fee is not paid on time, a penalty may be imposed at the
greater of $1,000 or an amount equal to 5% of the deficiency for
each month or part of a month that the deficiency remains unpaid.
Self-Insurers'
Assessment Form
Contact:
For
questions on the time period of the self-insured status, payroll
amount listed on the bill, or to update contact information:
IWCC Self-Insurance Office
Maria Sarli-Dehlin
(312/814-6065)
Jean Cannon (217/782-6330)
For
questions about the payment method or history:
IWCC Fiscal Office
Ami Gilkes (312/814-1647)
Carol Reckamp (312/814-6625)
Rate
Adjustment Fund
Illinois
Compiled Statutes, Chapter 820, Paragraph 305, Sections 7-8
The Rate Adjustment Fund was
created in 1975 to pay cost-of-living increases to individuals who
are either permanently and totally disabled or the survivors of
fatally injured workers. Individuals who receive awards or settlements
for permanent and total disability or death benefits are eligible.
Benefits
are paid each month, beginning on July 15 of the second year after
the award or settlement is entered by the Commission. Recipients
are given an amount equal to the percentage increase in the statewide
average weekly wage, as calculated by the Department of Employment
Security.
Twice
each year, self-insured employers, insurance companies, and governmental
units pay 1.25% of all compensation payments, excluding hospital,
surgical, or rehabilitation payments, made in the six-month period
preceding the payment date.
If
a self-insured company terminated its self-insurance privilege,
ceased doing business in Illinois, filed for reorganization, or
was acquired by or merged into a conventionally insured company,
it will continue to be assessed until all workers' compensation
claims have been resolved and the statute of limitations has expired.
The company is required to return the assessment form to the Commission
until the Commission has confirmed that all workers' compensation
claims have been resolved. Thereafter, assessments should cease.
If
you believe your company should no longer be assessed, please contact
Maria Sarli-Dehlin,
IWCC Self-Insurance Division, at 312/814-6065.
If an insurance company terminates a workers' compensation policy,
the company should notify John
O’Brian, IDFPR Insurance Division, at 217/782-0055.
The IDFPR will provide a letter confirming the termination of the
workers' compensation insurance policy to the company and to the
IWCC. After the Commission receives the confirmation letter, assessments
will cease.
By law, every February 1st and August 1st, the Commission examines
the fund balance. If the fund balance is above $4 million, then
the assessment is cut in half. If the balance is above $5 million,
then the assessment will not be made. If the balance falls below
$3 million, the full assessment will be reinstated.
The
Rate Adjustment and Second Injury assessments are sent together
each January and July. Payment is due March 15 and September 15.
All payments should be rounded to the nearest cent.
If
an employer fails to make timely payment, the Commission may impose
a penalty equal to 20% of the amount due or $2,500, whichever is
greater.
Contact
person: Inez Gardner,
IWCC Fiscal Office, 312/814-1446
Assessment
Form
Cover
letter
Second Injury Fund
Illinois
Compiled Statutes, Chapter 820, Paragraph 305, Sections 7-8
The
Second Injury Fund provides an incentive to employers to hire disabled
workers. Illinois' SIF is more narrowly constructed than most other
states. If a worker who had previously incurred the complete loss
of a member or the use of a member (one hand, arm, foot, leg, or
eye) is injured on the job and suffers the complete loss of another
member so that he or she is permanently and totally disabled (PTD),
the employer is liable only for the injury due to the second accident.
The fund pays the amount necessary to provide the worker with a
PTD benefit.
Insurers
and self-insured employers pay assessments up to 1/8 of 1% of compensation
payments, excluding hospital, surgical, or rehabilitation payments,
made in the six-month period preceding the payment date.
By law, every January 1st and July 1st, the Commission examines
the fund balance. If the fund balance is $500,000, then the assessment
is cut in half. If the balance is $600,000, then the assessment
will not be made. If the balance falls to $400,000, the half-assessment
will be reinstated; if it drops to $300,000, the full assessment
will be reinstated.
The
Rate Adjustment and Second Injury assessments are sent together
each January and July. Payment is due March 15 and September 15.
If
an employer fails to make timely payment, the Commission may impose
a penalty equal to 20% of the amount due or $2,500, whichever is
greater.
Contact
person: Inez Gardner,
IWCC Fiscal Office, 312/814-1446
Assessment
Form
Cover
letter
Self-Insurers
Security Fund
Illinois
Compiled Statutes, Chapter 820, Paragraph 305, Sections 4a-5, 4a-7
The Self-Insurers Security Fund was created in 1986 to pay benefits
to employees of private self-insurers that became insolvent after
1986. Self-insured employers pay assessments based on their compensation
payments, up to a maximum of 1.2% of compensation payments, excluding
hospital, surgical, or rehabilitation payments, made during the
preceding year.
Assessments
are sent out at the direction of the Self-Insurers Advisory Board.
Payment is due within 30 days. Penalties are handled through
the circuit court.
Contact
person: Maria
Sarli-Dehlin, IWCC Self-Insurance Division, 312/814-6065
Assessment
Form
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