Governor  Dannel P. Malloy
 

Second Injury Fund

Employer Assessment

The Second Injury Fund operations are financed by assessments on all Connecticut employers.  The State Treasurer, as Custodian of the Fund, establishes the assessment rate on or before May 1st of each year.

Insured employers pay a surcharge on their workers’ compensation insurance policies based on “direct written premiums” calculated and issued by insurance companies who collect and remit this assessment to the Fund.  The assessment for self-insured employers is based on “paid losses” for medical and indemnity benefits incurred in the prior calendar year.

There were 4 assessments made in Fiscal Year 2016 on insured employers totaling $33.7 million.  Self-insured employers were assessed 4 times during Fiscal Year 2016 totaling $6.1 million for a combined assessment on all Connecticut employers of $39.8 million for Fiscal Year 2016.

Assessment rates, which are used to determine how much Connecticut businesses will pay to the Fund, have either remained the same or been reduced over the past seventeen years.

For insurers, the assessment rate for fiscal year 2018 will remain at 2.75% and 3.25% for self-insured employers.

During the Nappier administration stricter oversight allowed a reduction of rates charged to Connecticut businesses for assessments paid to the Treasury’s Second Injury Fund.  The cumulative effect of all the rate reductions since 1999 is a net savings of $1.3 billion for Connecticut businesses, which includes $103 million in projected savings during Fiscal Year 2018.  This reflects a total reduction of 73% in rates assessed for insurance companies and 78% for self-insured companies.

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