In a surprising move, Gov. DeWine announced last week that he is asking the Ohio Bureau of Workers’ Compensation (BWC) board of directors to approve another dividend this year to the tune of $5 billion in an effort to help keep businesses open and Ohioans employed. On Monday, BWC’s board met and approved the proposal. BWC will mail dividend checks to eligible employers in mid-December. More information on this dividend can be found here.
This dividend comes on the heels of $1.34 billion in dividend payments being sent to Ohio employers beginning later this month and in early November to help ease the financial pressures employers may be experiencing amid the coronavirus (COVID-19) pandemic. That dividend equals approximately 100% of the premiums paid in policy year 2019. Additionally, a $1.54 billion dividend was sent earlier this spring. These dividends are possible because of strong investment returns on employer premiums, a declining number of claims each year, prudent fiscal management, and employers who work hard to improve workplace safety and reduce injury claims.
With this latest dividend, the amount sent to employers this year will total $8 billion. As with past rebates, employers are free to spend the funds as they wish.
While workers’ compensation in Ohio is a monopolistic system, it continues to be an area where your commercial clients have been positively impacted by BWC’s repeated rebates the past seven years. We encourage you to continue to explore how you can become an advisor to your clients on their Ohio workers’ compensation needs by learning more about OIA’s Group Rating and Retro programs.
For questions, contact Carolyn Mangas at email@example.com.