BWC Board OKs $1.5B Rebate for Ohio Employers
COLUMBUS, Ohio – The board of directors for the Ohio Bureau of Workers’ Compensation approved a proposal Friday from Gov. Mike DeWine to send $1.5 billion of the agency’s revenues to Ohio employers covered by the BWC system.
BWC, the state’s insurance fund for injured workers, will begin sending checks to approximately 180,000 private and public employers in late September. It marks the fifth time since 2013 the agency has returned at least $1 billion to employers following strong investment returns, falling injury claims and other operational efficiencies, according to the agency.
“I am pleased that BWC’s board agreed with our proposal to give this money to qualifying businesses, local governments, and school districts,” said DeWine. “Employers will be able to reinvest these funds in their operations and their employees, which will further strengthen Ohio’s economy.”
The $1.5 billion equals 88% of the premiums employers paid for the policy year that ended June 30, 2018 (calendar year 2017 for public employers), the agency said. While the bulk would go to private companies, an estimated $114 million would go to counties, cities, townships and other local government entities. Nearly $50 million would go to public school districts.
Employers are free to spend the funds as they wish, but BWC Administrator/CEO Stephanie McCloud urges businesses to invest in workplace safety. “Investing in safety reduces the risks for costly workplace injuries,” she says. “It’s good for the health and safety of employees, it’s good for the company’s bottom line and it’s good for our economy.”
BWC has repeatedly lowered premium rates in recent years, said Stephanie McCloud, administrator/CEO, including a 12% cut for public employers that took effect in January and a 20% cut for private employers that begins Monday. The agency returned $1 billion or more to employers in 2013, 2014, 2017 and 2018. It also returned $15 million in 2016 to counties participating in the Public Work Relief Employees’ Fund, she noted.
In total, BWC said it has saved employers nearly $10 billion in workers’ comp costs through dividends, credits, rate reductions and greater efficiencies since 2011.
Copyright 2022 The Business Journal, Youngstown, Ohio.