WORK COMP-SURCHARGES & FEES

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4942

Introduced , by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

215 ILCS 5/416
820 ILCS 305/4d
820 ILCS 305/7

Amends the Illinois Insurance Code and the Workers' Compensation Act.
Provides for increases in the rate of the Illinois Workers' Compensation
Commission Operations Fund Surcharge, the Illinois Workers' Compensation
Commission Operations Fund Fee, and payments to the Rate Adjustment Fund.
Effective immediately.
LRB104 20520 SPS 33994 b

A BILL FOR

HB4942
LRB104 20520 SPS 33994 b
1

AN ACT concerning employment.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Insurance Code is amended by
5
changing Section 416 as follows:

6

(215 ILCS 5/416)
7

Sec. 416.
Illinois Workers' Compensation Commission
8
Operations Fund Surcharge.
9

(a) As of July 30, 2004 (the effective date of Public Act
10
93-840), every company licensed or authorized by the Illinois
11
Department of Insurance and insuring employers' liabilities
12
arising under the Workers' Compensation Act or the Workers'
13
Occupational Diseases Act shall remit to the Director a
14
surcharge based upon the annual direct written premium, as
15
reported under Section 136 of this Act, of the company in the
16
manner provided in this Section. Such proceeds shall be
17
deposited into the Illinois Workers' Compensation Commission
18
Operations Fund as established in the Workers' Compensation
19
Act. If a company survives or was formed by a merger,
20
consolidation, reorganization, or reincorporation, the direct
21
written premiums of all companies party to the merger,
22
consolidation, reorganization, or reincorporation shall, for
23
purposes of determining the amount of the fee imposed by this

HB4942
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LRB104 20520 SPS 33994 b
1
Section, be regarded as those of the surviving or new company.
2

(b) Beginning on July 30, 2004 (the effective date of
3
Public Act 93-840) and on July 1 of each year thereafter
4
through 2023, the Director shall charge an annual Illinois
5
Workers' Compensation Commission Operations Fund Surcharge
6
from every company subject to subsection (a) of this Section
7
equal to 1.01% of its direct written premium for insuring
8
employers' liabilities arising under the Workers' Compensation
9
Act or Workers' Occupational Diseases Act as reported in each
10
company's annual statement filed for the previous year as
11
required by Section 136. Within 15 days after June 5, 2024 (the
12
effective date of Public Act 103-590) and on July 1 of each
13
year thereafter, the Director shall charge an annual Illinois
14
Workers' Compensation Commission Operations Fund Surcharge
15
from every company subject to subsection (a) of this Section
16
equal to 1.092% of its direct written premium for insuring
17
employers' liabilities arising under the Workers' Compensation
18
Act or Workers' Occupational Diseases Act as reported in each
19
company's annual statement filed for the previous year as
20
required by Section 136. The Illinois Workers' Compensation
21
Commission Operations Fund Surcharge shall be collected by
22
companies subject to subsection (a) of this Section as a
23
separately stated surcharge on insured employers at the rate
24
of 1.092% of direct written premium for the surcharge due in
25
2024
and 2025

and each year thereafter
.
On June 1, 2026, the
26
Director shall charge an annual Illinois Workers' Compensation

HB4942
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LRB104 20520 SPS 33994 b
1
Commission Operations Fund Surcharge from every company
2
subject to subsection (a) of this Section equal to 1.1794% of
3
its direct written premium for insuring employers' liabilities
4
arising under the Workers' Compensation Act or Workers'
5
Occupational Diseases Act as reported in each company's annual
6
statement filed for the previous year as required by Section
7
136. The Illinois Workers' Compensation Commission Operations
8
Fund Surcharge shall be collected by companies subject to
9
subsection (a) of this Section as a separately stated
10
surcharge on insured employers at the rate of 1.1794% of
11
direct written premium for the surcharge due in 2026. On or
12
before the second Monday of May 2027, and on or before the
13
second Monday of May of each year thereafter, if the Chairman
14
determines that the Illinois Workers' Compensation Commission
15
Operations Fund Surcharge rate must be increased to meet the
16
needs of the Commission for the next fiscal year, the Chairman
17
shall propose a new rate and call a vote of the Commission to
18
approve the rate for the next fiscal year. If, by majority
19
vote, the Commission approves the rate, the Chairman shall
20
notify the Governor of the rate and publish the rate on the
21
Commission's website. To determine the rate to be used, the
22
Chairman shall consider the proposed budget for the Commission
23
for the next fiscal year and the estimated amount of moneys to
24
be collected by the Commission based on the previous year's
25
Illinois Workers' Compensation Commission Operations Fund
26
Surcharge rate and the previous year's Illinois Workers'

HB4942
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LRB104 20520 SPS 33994 b
1
Compensation Commission Operations Fund Fee rate. Any increase
2
to the Illinois Workers' Compensation Commission Operations
3
Fund Surcharge rate shall be made in an identical proportion
4
to an increase in the Illinois Workers' Compensation
5
Commission Operations Fund Fee rate as set forth in Section 4d
6
of the Workers' Compensation Act. The Illinois Workers'
7
Compensation Commission Operations Fund Surcharge rate shall
8
not be reduced from the previous year's rate except by an Act
9
of the General Assembly. After the Commission approves the
10
rate and the Chairman publishes the rate on the Commission's
11
website, on June 1, 2027, and on June 1 of each year
12
thereafter, the Director shall charge an annual Illinois
13
Workers' Compensation Commission Operations Fund Surcharge
14
from every company subject to subsection (a) of this Section,
15
equal to the rate approved by the Commission for that fiscal
16
year, of its direct written premium for insuring employers'
17
liabilities arising under the Workers' Compensation Act or
18
Workers' Occupational Diseases Act as reported in each
19
company's annual statement filed for the previous year as
20
required by Section 136. The Illinois Workers' Compensation
21
Commission Operations Fund Surcharge shall be collected by
22
companies subject to subsection (a) of this Section as a
23
separately stated surcharge on insured employers at the
24
established rate of direct written premium for the surcharge
25
due in 2027 and at the established rate each year thereafter.

26
The Illinois Workers' Compensation Commission Operations Fund

HB4942
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LRB104 20520 SPS 33994 b
1
Surcharge shall not be collected by companies subject to
2
subsection (a) of this Section from any employer that
3
self-insures its liabilities arising under the Workers'
4
Compensation Act or Workers' Occupational Diseases Act,
5
provided that the employer has paid the Illinois Workers'
6
Compensation Commission Operations Fund Fee pursuant to
7
Section 4d of the Workers' Compensation Act. All sums
8
collected by the Department of Insurance under the provisions
9
of this Section shall be paid promptly after the receipt of the
10
same, accompanied by a detailed statement thereof, into the
11
Illinois Workers' Compensation Commission Operations Fund in
12
the State treasury.
13

(c) In addition to the authority specifically granted
14
under Article XXV of this Code, the Director shall have such
15
authority to adopt rules or establish forms as may be
16
reasonably necessary for purposes of enforcing this Section.
17
The Director shall also have authority to defer, waive, or
18
abate the surcharge or any penalties imposed by this Section
19
if in the Director's opinion the company's solvency and
20
ability to meet its insured obligations would be immediately
21
threatened by payment of the surcharge due.
22

(d) When a company fails to pay the full amount of any
23
annual Illinois Workers' Compensation Commission Operations
24
Fund Surcharge of $100 or more due under this Section, there
25
shall be added to the amount due as a penalty an amount equal
26
to 10% of the deficiency for each month or part of a month that

HB4942
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LRB104 20520 SPS 33994 b
1
the deficiency remains unpaid.
2

(e) The Department of Insurance may enforce the collection
3
of any delinquent payment, penalty, or portion thereof by
4
legal action or in any other manner by which the collection of
5
debts due the State of Illinois may be enforced under the laws
6
of this State.
7

(f) Whenever it appears to the satisfaction of the
8
Director that a company has paid pursuant to this Act an
9
Illinois Workers' Compensation Commission Operations Fund
10
Surcharge in an amount in excess of the amount legally
11
collectable from the company, the Director shall issue a
12
credit memorandum for an amount equal to the amount of such
13
overpayment. A credit memorandum may be applied for the 2-year
14
period from the date of issuance, against the payment of any
15
amount due during that period under the surcharge imposed by
16
this Section or, subject to reasonable rule of the Department
17
of Insurance including
the
requirement of notification, may be
18
assigned to any other company subject to regulation under this
19
Act. Any application of credit memoranda after the period
20
provided for in this Section is void.
21

(g) Annually, the Governor may direct a transfer of up to
22
2% of all moneys collected under this Section to the Insurance
23
Financial Regulation Fund.
24
(Source: P.A. 103-590, eff. 6-5-24; 104-417, eff. 8-15-25.)

25

Section 10.
The Workers' Compensation Act is amended by

HB4942
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LRB104 20520 SPS 33994 b
1
changing Sections 4d and 7 as follows:

2

(820 ILCS 305/4d)
3

Sec. 4d.
Illinois Workers' Compensation Commission
4
Operations Fund Fee.
5

(a) As of the effective date of this amendatory Act of the
6
93rd General Assembly, each employer that self-insures its
7
liabilities arising under this Act or Workers' Occupational
8
Diseases Act shall pay a fee measured by the annual actual
9
wages paid in this State of such an employer in the manner
10
provided in this Section. Such proceeds shall be deposited in
11
the Illinois Workers' Compensation Commission Operations Fund.
12
If an employer survives or was formed by a merger,
13
consolidation, reorganization, or reincorporation, the actual
14
wages paid in this State of all employers party to the merger,
15
consolidation, reorganization, or reincorporation shall, for
16
purposes of determining the amount of the fee imposed by this
17
Section, be regarded as those of the surviving or new
18
employer.
19

(b) Beginning on July 30, 2004 (the effective date of
20
Public Act 93-840) and on July 1 of each year thereafter
21
through 2023, the Chairman shall charge and collect an annual
22
Illinois Workers' Compensation Commission Operations Fund Fee
23
from every employer subject to subsection (a) of this Section
24
equal to 0.0075% of its annual actual wages paid in this State
25
as reported in each employer's annual self-insurance renewal

HB4942
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LRB104 20520 SPS 33994 b
1
filed for the previous year as required by Section 4 of this
2
Act and Section 4 of the Workers' Occupational Diseases Act.
3
On

Beginning on
July 1, 2024 and on
July 1, 2025

July 1 of each
4
year thereafter
, the Chairman shall charge and collect an
5
annual Illinois Workers' Compensation Commission Operations
6
Fund Fee from every employer subject to subsection (a) of this
7
Section equal to 0.0081% of its annual actual wages paid in
8
this State as reported in each employer's annual
9
self-insurance renewal filed for the previous year as required
10
by Section 4 of this Act and Section 4 of the Workers'
11
Occupational Diseases Act.
On July 1, 2026, the Chairman shall
12
charge and collect an annual Illinois Workers' Compensation
13
Commission Operations Fund Fee from every employer subject to
14
subsection (a) of this Section equal to 0.00875% of its annual
15
actual wages paid in this State as reported in each employer's
16
annual self-insurance renewal filed for the previous year as
17
required by Section 4 of this Act and Section 4 of the Workers'
18
Occupational Diseases Act. On or before the second Monday of
19
May 2027, and on or before the second Monday of May of each
20
year thereafter, if the Chairman determines that the Illinois
21
Workers' Compensation Commission Operations Fund Fee rate must
22
be increased to meet the needs of the Commission for the next
23
fiscal year, the Chairman shall propose a new rate and call a
24
vote of the Commission to approve the rate for the next fiscal
25
year. If, by majority vote, the Commission approves the rate,
26
the Chairman shall notify the Governor of the rate and publish

HB4942
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LRB104 20520 SPS 33994 b
1
the rate on the Commission's website. To determine the rate to
2
be used, the Chairman shall consider the proposed budget for
3
the Commission for the next fiscal year and the estimated
4
amount of moneys to be collected by the Commission based on the
5
previous year's Illinois Workers' Compensation Commission
6
Operations Fund Fee rate and the previous year's Illinois
7
Workers' Compensation Commission Operations Fund Surcharge
8
rate. Any increase to the Illinois Workers' Compensation
9
Commission Operations Fund Surcharge rate shall be made in an
10
identical proportion to an increase in the Illinois Workers'
11
Compensation Commission Operations Fund Fee rate as set forth
12
in Section 416 of the Illinois Insurance Code. The Illinois
13
Workers' Compensation Commission Operations Fund Fee rate
14
shall not be reduced from the previous year's rate except by an
15
Act of the General Assembly. After the Commission approves the
16
rate and the Chairman publishes the rate on the Commission's
17
website, on July 1, 2027, and on July 1 of each year
18
thereafter, the Chairman shall charge and collect the annual
19
Illinois Workers' Compensation Commission Operations Fund Fee
20
from every employer subject to subsection (a) of this Section
21
equal to the determined rate of each employer's annual actual
22
wages paid in this State as reported in each employer's annual
23
self-insurance renewal filed for the previous year as required
24
by Section 4 of this Act and Section 4 of the Workers'
25
Occupational Diseases Act.
All sums collected by the
26
Commission under the provisions of this Section shall be paid

HB4942
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LRB104 20520 SPS 33994 b
1
promptly after the receipt of the same, accompanied by a
2
detailed statement thereof, into the Illinois Workers'
3
Compensation Commission Operations Fund. The fee due pursuant
4
to Public Act 93-840 shall be collected instead of the fee due
5
on July 1, 2004 under Public Act 93-32. Payment of the fee due
6
under Public Act 93-840 shall discharge the employer's
7
obligations due on July 1, 2004.
8

(c) In addition to the authority specifically granted
9
under Section 16, the Chairman shall have such authority to
10
adopt rules or establish forms as may be reasonably necessary
11
for purposes of enforcing this Section. The Commission shall
12
have authority to defer, waive, or abate the fee or any
13
penalties imposed by this Section if in the Commission's
14
opinion the employer's solvency and ability to meet its
15
obligations to pay workers' compensation benefits would be
16
immediately threatened by payment of the fee due.
17

(d) When an employer fails to pay the full amount of any
18
annual Illinois Workers' Compensation Commission Operations
19
Fund Fee of $100 or more due under this Section, there shall be
20
added to the amount due as a penalty the greater of $1,000 or
21
an amount equal to 5% of the deficiency for each month or part
22
of a month that the deficiency remains unpaid.
23

(e) The Commission may enforce the collection of any
24
delinquent payment, penalty or portion thereof by legal action
25
or in any other manner by which the collection of debts due the
26
State of Illinois may be enforced under the laws of this State.

HB4942
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LRB104 20520 SPS 33994 b
1

(f) Whenever it appears to the satisfaction of the
2
Chairman that an employer has paid pursuant to this Act an
3
Illinois Workers' Compensation Commission Operations Fund Fee
4
in an amount in excess of the amount legally collectable from
5
the employer, the Chairman shall issue a credit memorandum for
6
an amount equal to the amount of such overpayment. A credit
7
memorandum may be applied for the 2-year period from the date
8
of issuance against the payment of any amount due during that
9
period under the fee imposed by this Section or, subject to
10
reasonable rule of the Commission including requirement of
11
notification, may be assigned to any other employer subject to
12
regulation under this Act. Any application of credit memoranda
13
after the period provided for in this Section is void.
14
(Source: P.A. 103-590, eff. 6-5-24.)

15

(820 ILCS 305/7)
16

Sec. 7.
The amount of compensation which shall be paid for
17
an accidental injury to the employee resulting in death is:
18

(a) If the employee leaves surviving a widow, widower,
19
child or children, the applicable weekly compensation rate
20
computed in accordance with subparagraph 2 of paragraph (b) of
21
Section 8, shall be payable during the life of the widow or
22
widower and if any surviving child or children shall not be
23
physically or mentally incapacitated then until the death of
24
the widow or widower or until the youngest child shall reach
25
the age of 18, whichever shall come later; provided that if

HB4942
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LRB104 20520 SPS 33994 b
1
such child or children shall be enrolled as a full-time
2
student in any accredited educational institution, the
3
payments shall continue until such child has attained the age
4
of 25. In the event any surviving child or children shall be
5
physically or mentally incapacitated, the payments shall
6
continue for the duration of such incapacity.
7

The term "child" means a child whom the deceased employee
8
left surviving, including a posthumous child, a child legally
9
adopted, a child whom the deceased employee was legally
10
obligated to support or a child to whom the deceased employee
11
stood in loco parentis. The term "children" means the plural
12
of "child".
13

The term "physically or mentally incapacitated child or
14
children" means a child or children incapable of engaging in
15
regular and substantial gainful employment.
16

In the event of the remarriage of a widow or widower, where
17
the decedent did not leave surviving any child or children
18
who, at the time of such remarriage, are entitled to
19
compensation benefits under this Act, the surviving spouse
20
shall be paid a lump sum equal to 2 years compensation benefits
21
and all further rights of such widow or widower shall be
22
extinguished.
23

If the employee leaves surviving any child or children
24
under 18 years of age who at the time of death shall be
25
entitled to compensation under this paragraph (a) of this
26
Section, the weekly compensation payments herein provided for

HB4942
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LRB104 20520 SPS 33994 b
1
such child or children shall in any event continue for a period
2
of not less than 6 years.
3

Any beneficiary entitled to compensation under this
4
paragraph (a) of this Section shall receive from the special
5
fund provided in paragraph (f) of this Section, in addition to
6
the compensation herein provided, supplemental benefits in
7
accordance with paragraph (g) of Section 8.
8

(b) If no compensation is payable under paragraph (a) of
9
this Section and the employee leaves surviving a parent or
10
parents who at the time of the accident were totally dependent
11
upon the earnings of the employee then weekly payments equal
12
to the compensation rate payable in the case where the
13
employee leaves surviving a widow or widower, shall be paid to
14
such parent or parents for the duration of their lives, and in
15
the event of the death of either, for the life of the survivor.
16

(c) If no compensation is payable under paragraph (a) or
17
(b) of this Section and the employee leaves surviving any
18
child or children who are not entitled to compensation under
19
the foregoing paragraph (a) but who at the time of the accident
20
were nevertheless in any manner dependent upon the earnings of
21
the employee, or leaves surviving a parent or parents who at
22
the time of the accident were partially dependent upon the
23
earnings of the employee, then there shall be paid to such
24
dependent or dependents for a period of 8 years weekly
25
compensation payments at such proportion of the applicable
26
rate if the employee had left surviving a widow or widower as

HB4942
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LRB104 20520 SPS 33994 b
1
such dependency bears to total dependency. In the event of the
2
death of any such beneficiary the share of such beneficiary
3
shall be divided equally among the surviving beneficiaries and
4
in the event of the death of the last such beneficiary all the
5
rights under this paragraph shall be extinguished.
6

(d) If no compensation is payable under paragraph (a),
7
(b), or (c) of this Section and the employee leaves surviving
8
any grandparent, grandparents, grandchild or grandchildren or
9
collateral heirs dependent upon the employee's earnings to the
10
extent of 50% or more of total dependency, then there shall be
11
paid to such dependent or dependents for a period of 5 years
12
weekly compensation payments at such proportion of the
13
applicable rate if the employee had left surviving a widow or
14
widower as such dependency bears to total dependency. In the
15
event of the death of any such beneficiary the share of such
16
beneficiary shall be divided equally among the surviving
17
beneficiaries and in the event of the death of the last such
18
beneficiary all rights hereunder shall be extinguished.
19

(e) The compensation to be paid for accidental injury
20
which results in death, as provided in this Section, shall be
21
paid to the persons who form the basis for determining the
22
amount of compensation to be paid by the employer, the
23
respective shares to be in the proportion of their respective
24
dependency at the time of the accident on the earnings of the
25
deceased. The Commission or an Arbitrator thereof may, in its
26
or his discretion, order or award the payment to the parent or

HB4942
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LRB104 20520 SPS 33994 b
1
grandparent of a child for the latter's support the amount of
2
compensation which but for such order or award would have been
3
paid to such child as its share of the compensation payable,
4
which order or award may be modified from time to time by the
5
Commission in its discretion with respect to the person to
6
whom shall be paid the amount of the order or award remaining
7
unpaid at the time of the modification.
8

The payments of compensation by the employer in accordance
9
with the order or award of the Commission discharges such
10
employer from all further obligation as to such compensation.
11

(f) The sum of $8,000 for burial expenses shall be paid by
12
the employer to the widow or widower, other dependent, next of
13
kin or to the person or persons incurring the expense of
14
burial.
15

In the event the employer failed to provide necessary
16
first aid, medical, surgical or hospital service, he shall pay
17
the cost thereof to the person or persons entitled to
18
compensation under paragraphs (a), (b), (c), or (d) of this
19
Section, or to the person or persons incurring the obligation
20
therefore, or providing the same.
21

On January 15 and July 15, 1981, and on January 15 and July
22
15 of each year thereafter the employer shall within 60 days
23
pay a sum equal to 1/8 of 1% of all compensation payments made
24
by him after July 1, 1980, either under this Act or the
25
Workers' Occupational Diseases Act, whether by lump sum
26
settlement or weekly compensation payments, but not including

HB4942
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LRB104 20520 SPS 33994 b
1
hospital, surgical or rehabilitation payments, made during the
2
first 6 months and during the second 6 months respectively of
3
the fiscal year next preceding the date of the payments, into a
4
special fund which shall be designated the "Second Injury
5
Fund", of which the State Treasurer is ex officio custodian,
6
such special fund to be held and disbursed for the purposes
7
hereinafter stated in paragraphs (f) and (g) of Section 8,
8
either upon the order of the Commission or of a competent
9
court. Said special fund shall be deposited the same as are
10
State funds and any interest accruing thereon shall be added
11
thereto every 6 months. It is subject to audit the same as
12
State funds and accounts and is protected by the General bond
13
given by the State Treasurer. It is considered always
14
appropriated for the purposes of disbursements as provided in
15
paragraph (f) of Section 8 of this Act, and shall be paid out
16
and disbursed as therein provided and shall not at any time be
17
appropriated or diverted to any other use or purpose.
18

On January 15, 1991, the employer shall further pay a sum
19
equal to one half of 1% of all compensation payments made by
20
him from January 1, 1990 through June 30, 1990 either under
21
this Act or under the Workers' Occupational Diseases Act,
22
whether by lump sum settlement or weekly compensation
23
payments, but not including hospital, surgical or
24
rehabilitation payments, into an additional Special Fund which
25
shall be designated as the "Rate Adjustment Fund". On March
26
15, 1991, the employer shall pay into the Rate Adjustment Fund

HB4942
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LRB104 20520 SPS 33994 b
1
a sum equal to one half of 1% of all such compensation payments
2
made from July 1, 1990 through December 31, 1990. Within 60
3
days after July 15, 1991, the employer shall pay into the Rate
4
Adjustment Fund a sum equal to one half of 1% of all such
5
compensation payments made from January 1, 1991 through June
6
30, 1991. Within 60 days after January 15 of 1992 and each
7
subsequent year through 1996, the employer shall pay into the
8
Rate Adjustment Fund a sum equal to one half of 1% of all such
9
compensation payments made in the last 6 months of the
10
preceding calendar year. Within 60 days after July 15 of 1992
11
and each subsequent year through 1995, the employer shall pay
12
into the Rate Adjustment Fund a sum equal to one half of 1% of
13
all such compensation payments made in the first 6 months of
14
the same calendar year. Within 60 days after January 15 of 1997
15
and each subsequent year through 2005, the employer shall pay
16
into the Rate Adjustment Fund a sum equal to three-fourths of
17
1% of all such compensation payments made in the last 6 months
18
of the preceding calendar year. Within 60 days after July 15 of
19
1996 and each subsequent year through 2004, the employer shall
20
pay into the Rate Adjustment Fund a sum equal to three-fourths
21
of 1% of all such compensation payments made in the first 6
22
months of the same calendar year. Within 60 days after July 15
23
of 2005, the employer shall pay into the Rate Adjustment Fund a
24
sum equal to 1% of such compensation payments made in the first
25
6 months of the same calendar year. Within 60 days after
26
January 15 of 2006 and each subsequent year through 2024, the

HB4942
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LRB104 20520 SPS 33994 b
1
employer shall pay into the Rate Adjustment Fund a sum equal to
2
1.25% of such compensation payments made in the last 6 months
3
of the preceding calendar year. Within 60 days after July 15 of
4
2006 and each subsequent year through 2023, the employer shall
5
pay into the Rate Adjustment Fund a sum equal to 1.25% of such
6
compensation payments made in the first 6 months of the same
7
calendar year. Within 60 days after July 15 of 2024
and July 15
8
of 2025

and each subsequent year thereafter
, the employer
9
shall pay into the Rate Adjustment Fund a sum equal to 1.375%
10
of such compensation payments made in the first 6 months of the
11
same calendar year. Within 60 days after January 15 of 2025 and
12
each subsequent year thereafter, the employer shall pay into
13
the Rate Adjustment Fund a sum equal to 1.375% of such
14
compensation payments made in the last 6 months of the
15
preceding calendar year.
Within 60 days after July 15 of 2026,
16
the employer shall pay into the Rate Adjustment Fund a sum
17
equal to 1.485% of such compensation payments made in the
18
first 6 months of the same calendar year. Within 60 days after
19
January 15 of 2027, the employer shall pay into the Rate
20
Adjustment Fund a sum equal to 1.485% of such compensation
21
payments made in the last 6 months of the preceding calendar
22
year. Within 60 days after July 15 of 2027, the employer shall
23
pay into the Rate Adjustment Fund a sum equal to 1.6% of such
24
compensation payments made in the first 6 months of the same
25
calendar year. Within 60 days after January 15 of 2028, the
26
employer shall pay into the Rate Adjustment Fund a sum equal to

HB4942
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LRB104 20520 SPS 33994 b
1
1.6% of such compensation payments made in the last 6 months of
2
the preceding calendar year. Within 60 days after July 15 of
3
2028 and each subsequent year thereafter, the employer shall
4
pay into the Rate Adjustment Fund a sum equal to 1.732% of such
5
compensation payments made in the first 6 months of the same
6
calendar year. Within 60 days after January 15 of 2029 and each
7
subsequent year thereafter, the employer shall pay into the
8
Rate Adjustment Fund a sum equal to 1.732% of such
9
compensation payments made in the last 6 months of the
10
preceding calendar year.
The administrative costs of
11
collecting assessments from employers for the Rate Adjustment
12
Fund shall be paid from the Rate Adjustment Fund. The cost of
13
an actuarial audit of the Fund shall be paid from the Rate
14
Adjustment Fund. The State Treasurer is ex officio custodian
15
of such Special Fund and the same shall be held and disbursed
16
for the purposes hereinafter stated in paragraphs (f) and (g)
17
of Section 8 upon the order of the Commission or of a competent
18
court. The Rate Adjustment Fund shall be deposited the same as
19
are State funds and any interest accruing thereon shall be
20
added thereto every 6 months. It shall be subject to audit the
21
same as State funds and accounts and shall be protected by the
22
general bond given by the State Treasurer. It is considered
23
always appropriated for the purposes of disbursements as
24
provided in paragraphs (f) and (g) of Section 8 of this Act and
25
shall be paid out and disbursed as therein provided and shall
26
not at any time be appropriated or diverted to any other use or

HB4942
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LRB104 20520 SPS 33994 b
1
purpose. Within 5 days after December 7, 1990 (the effective
2
date of Public Act 86-1448), the Comptroller and the State
3
Treasurer shall transfer $1,000,000 from the General Revenue
4
Fund to the Rate Adjustment Fund. By February 15, 1991, the
5
Comptroller and the State Treasurer shall transfer $1,000,000
6
from the Rate Adjustment Fund to the General Revenue Fund. The
7
Comptroller and Treasurer are authorized to make transfers at
8
the request of the Chairman up to a total of $19,000,000 from
9
the Second Injury Fund, the General Revenue Fund, and the
10
Workers' Compensation Benefit Trust Fund to the Rate
11
Adjustment Fund to the extent that there is insufficient money
12
in the Rate Adjustment Fund to pay claims and obligations.
13
Amounts may be transferred from the General Revenue Fund only
14
if the funds in the Second Injury Fund or the Workers'
15
Compensation Benefit Trust Fund are insufficient to pay claims
16
and obligations of the Rate Adjustment Fund. All amounts
17
transferred from the Second Injury Fund, the General Revenue
18
Fund, and the Workers' Compensation Benefit Trust Fund shall
19
be repaid from the Rate Adjustment Fund within 270 days of a
20
transfer, together with interest at the rate earned by moneys
21
on deposit in the Fund or Funds from which the moneys were
22
transferred.
23

Upon a finding by the Commission, after reasonable notice
24
and hearing, that any employer has willfully and knowingly
25
failed to pay the proper amounts into the Second Injury Fund or
26
the Rate Adjustment Fund required by this Section or if such

HB4942
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LRB104 20520 SPS 33994 b
1
payments are not made within the time periods prescribed by
2
this Section, the employer shall, in addition to such
3
payments, pay a penalty of 20% of the amount required to be
4
paid or $2,500, whichever is greater, for each year or part
5
thereof of such failure to pay. This penalty shall only apply
6
to obligations of an employer to the Second Injury Fund or the
7
Rate Adjustment Fund accruing after December 18, 1989 (the
8
effective date of Public Act 86-998). All or part of such a
9
penalty may be waived by the Commission for good cause shown.
10

Any obligations of an employer to the Second Injury Fund
11
and Rate Adjustment Fund accruing prior to December 18, 1989
12
(the effective date of Public Act 86-998) shall be paid in full
13
by such employer within 5 years of December 18, 1989 (the
14
effective date of Public Act 86-998), with at least one-fifth
15
of such obligation to be paid during each year following
16
December 18, 1989 (the effective date of Public Act 86-998).
17
If the Commission finds, following reasonable notice and
18
hearing, that an employer has failed to make timely payment of
19
any obligation accruing under the preceding sentence, the
20
employer shall, in addition to all other payments required by
21
this Section, be liable for a penalty equal to 20% of the
22
overdue obligation or $2,500, whichever is greater, for each
23
year or part thereof that obligation is overdue. All or part of
24
such a penalty may be waived by the Commission for good cause
25
shown.
26

The Chairman of the Illinois Workers' Compensation

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LRB104 20520 SPS 33994 b
1
Commission shall, annually, furnish to the Director of the
2
Department of Insurance a list of the amounts paid into the
3
Second Injury Fund and the Rate Adjustment Fund by each
4
insurance company on behalf of their insured employers. The
5
Director shall verify to the Chairman that the amounts paid by
6
each insurance company are accurate as best as the Director
7
can determine from the records available to the Director. The
8
Chairman shall verify that the amounts paid by each
9
self-insurer are accurate as best as the Chairman can
10
determine from records available to the Chairman. The Chairman
11
may require each self-insurer to provide information
12
concerning the total compensation payments made upon which
13
contributions to the Second Injury Fund and the Rate
14
Adjustment Fund are predicated and any additional information
15
establishing that such payments have been made into these
16
funds. Any deficiencies in payments noted by the Director or
17
Chairman shall be subject to the penalty provisions of this
18
Act.
19

The State Treasurer, or his duly authorized
20
representative, shall be named as a party to all proceedings
21
in all cases involving claim for the loss of, or the permanent
22
and complete loss of the use of one eye, one foot, one leg, one
23
arm or one hand.
24

The State Treasurer or his duly authorized agent shall
25
have the same rights as any other party to the proceeding,
26
including the right to petition for review of any award. The

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LRB104 20520 SPS 33994 b
1
reasonable expenses of litigation, such as medical
2
examinations, testimony, and transcript of evidence, incurred
3
by the State Treasurer or his duly authorized representative,
4
shall be borne by the Second Injury Fund.
5

If the award is not paid within 30 days after the date the
6
award has become final, the Commission shall proceed to take
7
judgment thereon in its own name as is provided for other
8
awards by paragraph (g) of Section 19 of this Act and take the
9
necessary steps to collect the award.
10

Any person, corporation or organization who has paid or
11
become liable for the payment of burial expenses of the
12
deceased employee may in his or its own name institute
13
proceedings before the Commission for the collection thereof.
14

For the purpose of administration, receipts and
15
disbursements, the Special Fund provided for in paragraph (f)
16
of this Section shall be administered jointly with the Special
17
Fund provided for in paragraph (f) of Section 7 of the Workers'
18
Occupational Diseases Act.
19

(g) All compensation, except for burial expenses provided
20
in this Section to be paid in case accident results in death,
21
shall be paid in installments equal to the percentage of the
22
average earnings as provided for in paragraph (b) of Section 8
23
of this Act, at the same intervals at which the wages or
24
earnings of the employees were paid. If this is not feasible,
25
then the installments shall be paid weekly. Such compensation
26
may be paid in a lump sum upon petition as provided in Section

HB4942
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LRB104 20520 SPS 33994 b
1
9 of this Act. However, in addition to the benefits provided by
2
Section 9 of this Act where compensation for death is payable
3
to the deceased's widow, widower or to the deceased's widow,
4
widower and one or more children, and where a partial lump sum
5
is applied for by such beneficiary or beneficiaries within 18
6
months after the deceased's death, the Commission may, in its
7
discretion, grant a partial lump sum of not to exceed 100 weeks
8
of the compensation capitalized at their present value upon
9
the basis of interest calculated at 3% per annum with annual
10
rests, upon a showing that such partial lump sum is for the
11
best interest of such beneficiary or beneficiaries.
12

(h) In case the injured employee is under 16 years of age
13
at the time of the accident and is illegally employed, the
14
amount of compensation payable under paragraphs (a), (b), (c),
15
(d), and (f) of this Section shall be increased 50%.
16

Nothing herein contained repeals or amends the provisions
17
of the Child Labor Law of 2024 relating to the employment of
18
minors under the age of 16 years.
19

However, where an employer has on file an employment
20
certificate issued pursuant to the Child Labor Law of 2024 or
21
work permit issued pursuant to the Federal Fair Labor
22
Standards Act, as amended, or a birth certificate properly and
23
duly issued, such certificate, permit or birth certificate is
24
conclusive evidence as to the age of the injured minor
25
employee for the purposes of this Section only.
26

(i) Whenever the dependents of a deceased employee are

HB4942
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LRB104 20520 SPS 33994 b
1
noncitizens not residing in the United States, Mexico or
2
Canada, the amount of compensation payable is limited to the
3
beneficiaries described in paragraphs (a), (b), and (c) of
4
this Section and is 50% of the compensation provided in
5
paragraphs (a), (b), and (c) of this Section, except as
6
otherwise provided by treaty.
7

In a case where any of the persons who would be entitled to
8
compensation is living at any place outside of the United
9
States, then payment shall be made to the personal
10
representative of the deceased employee. The distribution by
11
such personal representative to the persons entitled shall be
12
made to such persons and in such manner as the Commission
13
orders.
14
(Source: P.A. 103-590, eff. 6-5-24; 103-721, eff. 1-1-25;
15
104-417, eff. 8-15-25.)

16

Section 99.
Effective date.
This Act takes effect upon
17
becoming law.

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