In the Bureau of Workers’ Compensation (BWC) actuarial committee today, the Bureau announced their recommendation to lower private employer premiums by 7.1%. This rate reduction is projected to save employers $71.5 million dollars and will be the fourth time private employer premiums have shrunk since 2017.
The continued lowering of workers’ compensation premiums is a boost to the state’s business climate and economy since it will lower operating costs at a time when many businesses are facing smaller revenues due to the coronavirus. Keeping over $70 million dollars in the hands of Ohio’s job creators and entrepreneurs will also assist in the state’s economic rebound by freeing up money for employers to use to grow their business and hire more employees.
The Ohio Chamber commends the efforts taken by BWC during the last year to assist employers who are navigating the challenges arising from the coronavirus pandemic. In 2020, BWC gave back over $8 billion dollars in dividends to employers across Ohio, lowered workers’ compensation premiums by 13% and shipped nearly 50 million face coverings for employers to distribute to their employees. These efforts helped employers keep individuals on their payroll, make rent payments and keep Ohioans safe in the workplace.
Despite the cost of these efforts, the Bureau remains in a strong financial position thanks to prudent investment strategies with a net position of $7.6 billion dollars on Dec. 31, 2020.
The proposed 7.1% rate cut will likely go before the BWC’s Board of Directors next month and will take effect on July 1, 2021 if approved by the Board.