Ohio Employers Prepare to Receive a Billion Back

Date: April 19, 2017

Third Rebate from Ohio BWC Anticipated This Summer

Each year, the Ohio Bureau of Workers’ Compensation (BWC) helps nearly 250,000 employers protect their employees. The premiums paid by Ohio’s businesses and public employers help provide safety services to reduce workplace incidents and care to get injured workers back to work and back to life. An improving safety climate, good fiscal management and better than expected investment returns have resulted in the State Insurance Fund being able to return more than $1 billion dollars to Ohio’s private and public employers in 2017.

The BWC is proposing a one-time rebate of approximately $1 billion for private employers and public-taxing districts. This includes an estimated $967 million to private employers and $133 million to public employer taxing districts. In total, over 200,000 employers will receive rebates. The BWC is also considering an additional, significant investment in workplace wellness and safety.

It was approved at the BWC’s board meeting on April 28. Most rebates will be equal to 66% of the employer’s premium for the policy year ending June 30, 2016. The BWC will begin sending checks in early July. Private employers in the group-retro program will have their rebate amount calculated and paid following the 12-month premium calculation scheduled to occur in October 2017.

Both private employers and public employer taxing districts paying into the State Insurance Fund are eligible for the rebate. Details of eligibility will be posted to www.bwc.ohio.gov shortly, but generally, the employer must have been billed premium for the policy year ending June 30, 2016, and be current in meeting their policy requirements. Employers with an outstanding BWC balance will have their rebate first applied to that balance. Employers that report through a Professional Employer Organization should receive their rebate from their PEO, which is required to pass a portion of the rebate on to their members.

Despite a nearly 30 percent reduction in rates since 2011, the net position of BWC continues to grow, primarily due to strong investment returns. Annualized return on investments was 7 percent over the last three fiscal years, including a total net return of 5.8 percent in Fiscal Year 2016. The BWC’s expected annual investment return is four percent. Prudent fiscal management and declining claims also factor into BWC’s financial strength.

kasich-billion-2017

Ohio Governor John Kasich announces plans to return over $1.1 billion to Ohio employers in 2017 from the Ohio Bureau of Workers’ Compensation.

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