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