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Table of Contents
IWCC
Operations Fund
Rate Adjustment Fund
Second Injury Fund
Self-Insurers Security Fund
IWCC Operations
Fund
Illinois
Compiled Statutes, Ch. 820, Para. 305, Sec. 4d; Ch. 215, Para. 5,
Sec. 416
Purpose
The
IWCC Operations Fund was created in 2003 to pay for the administrative
costs of the agency.
Assessment
Insurance
carriers: Each year, the Illinois Department of Financial
and Professional Regulation (IDFPR) collects a 1.01% surcharge on
workers’ compensation insurance premiums from insurance carriers.
It sends out an assessment bill each July. Payment is due
30 days after the assessment is sent.
Self-insured
employers: Each year, the IWCC collects an assessment
of .0075% of payroll from self-insured employers. 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
was due September 15, 2008.
Penalty
for nonpayment
If
the employer fails to pay the fee on time, it shall pay the greater
of $1,000 or 5% of the deficiency for each month or part of a month
that the deficiency remains unpaid.
Contacts
For
insurance carriers' questions: John
O’Brian, 217/782-0055, IDFPR Insurance Division
For
self-insurers' questions about payment method/history: Ami
Gilkes (312/814-1647) or
Maria Parrino
(312/814-6616), IWCC Fiscal Office
For
self-insurers' questions on the time period of self-insured status,
payroll amount listed on the bill, or to update contact information: Maria
Sarli-Dehlin (312/814-6065) or Jean
Cannon (217/782-6330), IWCC Self-Insurance Office
Rate
Adjustment Fund
Illinois
Compiled Statutes, Chapter 820, Paragraph 305, Sections 7(f), 8(e)19-8(g)
Purpose
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 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 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.
Assessment
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. The Rate Adjustment and Second
Injury assessment form and cover
letter are sent each January and July. Payment is due March
15 and September 15. All payments should be rounded to the
nearest cent.
Payment
of the assessment is required until official approval to cease payment
is given as follows:
Insurance
carriers: 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 the IWCC.
After the IWCC receives the confirmation letter, assessments will
cease. We cannot stop assessing a company until we receive
the IDFPR letter.
Self-insured
employers: 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. If you believe your self-insured
company should no longer be assessed, please contact Maria
Sarli-Dehlin, IWCC Self-Insurance Division, at 312/814-6065.
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.
Penalty
for nonpayment
If
an employer knowingly and willfully fails to make timely payment,
the Commission shall impose a penalty equal to 20% of the amount
due or $2,500, whichever is greater.
Contacts
Ami Gilkes (312/814-1647)
or Maria Parrino
(312/814-6616), IWCC Fiscal Office
Second Injury Fund
Illinois
Compiled Statutes, Chapter 820, Paragraph 305, Sections 7-8
Purpose
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.
Assessment
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. The
Rate Adjustment and Second Injury assessment
form and cover letter are sent
each January and July. Payment is due March 15 and September 15.
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.
Penalty
for nonpayment
If
an employer knowingly and willfully fails to make timely payment,
the Commission shall impose a penalty equal to 20% of the amount
due or $2,500, whichever is greater.
Contacts
Ami
Gilkes (312/814-1647) or Maria
Parrino (312/814-6616), IWCC Fiscal Office
Self-Insurers
Security Fund
Illinois
Compiled Statutes, Chapter 820, Paragraph 305, Sections 4a-5, 4a-7
Purpose
The
Self-Insurers Security Fund was created in 1986 to pay benefits
to employees of private self-insurers that became insolvent after
1986.
Assessment
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. The last assessment was mailed
on 11/3/08.
Penalty
for nonpayment
Penalties
are handled through the circuit court.
Contacts
Maria Sarli-Dehlin,
(312/814-6065), IWCC Self-Insurance Division
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