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Workers' comp dividend rejected

Published on 07/25/2005

Don't count on getting a dividend from the Ohio Bureau of Workers' Compensation in the next billing cycle.

The Ohio Workers' Compensation Oversight Commission recently voted down the bureau's recommendation that it grant a one-time dividend on employer premium bills from Jan. 1 through June 30. The bureau had recommended an 8 percent dividend worth $70 million in savings to Ohio employers.

"What this means is that Farm Bureau members who are employers are going to have to pay their full workers' comp bill," said Dan Rapp, OFBF's director of member services.

If employers can't pay all their bill at once, they can pay half by the end of August and the rest in November.

Since 1995, employers have received more than $10 billion in one-time dividends from the bureau. The bureau determines dividend recommendations based on its latest surplus balances generated by investment returns. In the previous billing cycle, employers got a 20 percent dividend. Over the last decade, investment returns have averaged 16.5 percent per year, and last year the bureau earned 8.5 percent. The bureau said it projects a $606 million surplus this year.

The workers' comp bureau has been under attack after it was revealed recently that it lost $300 million in investments with three companies and that some of the money it invested in rare coins is missing.

The bureau said it will re-evaluate its surplus balance in November before deciding whether to recommend a dividend for the next six-month pay period.

 
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