The Chase Sensale Group Logo

Assessment Rate to Drop 13.2% in 2015

 Assessment Rate to Drop to 13.2%, Resulting in $45M in Annual Savings:

 

 

The workers' compensation assessment rate for New York employers will drop to 13.2% from 13.8% in 2015, saving employers $45 million, Gov. Andrew Cuomo's office announced Friday.

 

The assessments cover the administrative costs of running the State Workers' Compensation Board, as well as claims from the state Special Disability Fund and the Reopened Case Fund.

 

Cuomo credited the savings to the 2013 Business Relief Act, which he signed into law last year. The assessment rate for employers has declined by a cumulative 30% in the past two years, he said.

 

"Reducing the cost of doing business in New York has been a top priority for this administration and I'm proud to announce that our reforms to the workers' compensation system have lowered rates for the second straight year," Cuomo said in a press release.

 

Prior to passage of the 2013 bill, the New York State Workers' Compensation Board levied an assessment equal to 18.8% of premiums, the highest assessment rate in the nation. Self-insured employers, employers insured by the New York State Insurance Fund and employers insured by private carriers each paid differing assessment rates before the changes.

 

Assessments are now based on a percentage of premiums whether the employer is insured by NYSIF or by a private carrier. Self-insured employers pay a "premium equivalent" based on the previous year's losses.

 

Cuomo said efficiencies implemented in 2014 resulted in $170 million in administrative savings. Of that amount, $18 million will directly benefit New York's public employers, such as municipalities and school districts, the governor's office said.

Back to news >>>