Worker's compensation-provision for adverse deviation.

Plain English Breakdown

The official source material does not provide specific details about changes to premium rates or impacts on workers' benefits.

Worker's Compensation Investment Earnings Act

This law allows the Department of Workforce Services to consider investment earnings from a specific fund when setting worker's compensation rates.

What This Bill Does

• Authorizes the Department of Workforce Services to count up to five percent of past investment earnings as revenue in the Worker's Compensation Account for determining rates.
• Limits the amount of investment earnings considered to not exceed five percent of the previous five years' average market value of the fund set aside for adverse deviation.

Who It Names or Affects

• Employers who pay worker's compensation premiums.
• The Department of Workforce Services, which sets rates for the program.

Terms To Know

Actuarially reasonable provision for adverse deviation

A financial cushion set aside to cover unexpected costs in the worker's compensation fund.

Limits and Unknowns

• The law only allows up to five percent of investment earnings to be used as revenue.
• It is unclear how much the premiums for employers will actually decrease.

Official Summary Text

Bill Summary - 24LSO-0198

Bill No.:

HB0072

Effective:

7/1/2024

LSO No.:

24LSO-0198

Enrolled Act No.:

HEA No. 0002

Chapter No.:

6

Prime Sponsor:

Joint Appropriations Committee

Catch Title:

Worker's compensation-provision for adverse deviation.

Has Report:

No

Subject:

Worker's compensation rate setting.

Summary/Major Elements:

This act authorizes the Department of Workforce Services to consider investment earnings on funds set aside in the Worker's Compensation Account for the "provision for adverse deviation" (PFAD) as revenue when setting the Worker's Compensation rates. The amount that may be considered revenue may not exceed five percent (5%) of the previous five (5) year average market value of the PFAD.

By considering investment earnings on the PFAD as revenue under this act, the rates for premiums collected from employers may be decreased.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

24LSO-0198

ORIGINAL House

Bill No
.
HB0072

ENROLLED ACT NO. 2,

HOUSE OF REPRESENTATIVES

SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2024 Budget Session

AN ACT relating to worker's compensation; authorizing consideration of specified investment earnings for determining rates under the worker's compensation program; conforming provisions for the actuarially reasonable provision for adverse deviation; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 27
‑
14
‑
201(e)(i)(F), (vii)(A) and by creating a new paragraph (viii) is amended to read:

27
‑
14
‑
201.

Rates and classifications; rate surcharge.

(e)

The division in fixing rates shall provide for the costs of benefits and the expenses of administering the worker's compensation account allowed by law, subject to the following:

(i)

The account shall be one (1) account but shall include provision for all expenses allowed by this act, loss adjustment expenses and unpaid losses, including:

(F)

An actuarially reasonable
contingency margin
provision for adverse deviation
to reflect the uncertainty inherent in estimates of unpaid losses and loss adjustment expenses.

(vii)

For purposes of this section:

(A)

"Fully reserved" means that the workers' compensation account established by W.S.

27
‑
14
‑
701 has, in the opinion of a qualified actuary, funds sufficient on a discounted basis to provide for all unpaid loss and loss adjustment expenses as well as an actuarially
appropriate
reasonable
provision for adverse
contingencies
deviation
;

(viii)

Investment earnings from the investment of the amount held as the actuarially reasonable provision for adverse deviation shall be considered revenue to the worker's compensation account as provided in this paragraph. The annual amount of investment earnings available for consideration as revenue under this paragraph shall be determined by the department in an amount equal to not less than zero percent (0%) and not more than five percent (5%) of the previous five (5) year average market value of the amount held as the actuarially reasonable provision for adverse deviation, calculated from the first day of the fiscal year.

Section 2
.

This act is effective July 1, 2024
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1