Insurer, employer, and worker assessments fund the Oregon workers' compensation administration and programs. The Consumer and Business Services Fund is one of two funds to which monies from the assessments are deposited. This fund is managed by the Treasury Department. The other fund is the Workers' Benefit Fund, which is managed by DCBS.
The Workers' Compensation Premium Assessment Operating Account of the Consumer and Business Services Fund covers:
- Operating expenses of the Workers' Compensation Division
- Operating expenses of the Workers' Compensation Board
- Workers' compensation related functions of the Director's Office, the Ombudsman's Offices, Central Services, and Financial Regulation divisions
- Operating costs of the Oregon Occupational Safety and Health Division (also known as Oregon OSHA) not covered by federal funds
- The Self-Insured Employer Adjustment Reserve and the Self-Insured Employer Group Adjustment Reserve
Revenues are generated from assessments imposed by the director on the direct earned premium of insurers and a simulated earned premium of self-insured employers. Effective Jan. 1, 2013, the assessment will be set at an amount equal to 6.2 percent of the premiums charged for workers' compensation coverage, the same as in 2012. Self-insured employers and self-insured employer groups will continue to pay an additional 0.2 percent into a reserve to pay claims in the event of bankruptcy.
The Consumer and Business Services Fund is a dedicated fund and not part of the state's general fund. However, expenditures must be appropriated by the legislature and approved by the governor.
The Self-Insured Employer Adjustment Reserve and the Self-Insured Employer Group Adjustment Reserve (ORS 656.614) provide funds to pay the claims of workers of self-insured employers when the claims costs exceed the sum of employer security deposits, excess coverage, and other assets available to pay claim costs due to employer insolvency. Generally a third-party administrator processes the claims and submits requests for reimbursement to the department.