The NJ Legislature is considering expanding the multitiered program to compensate the victims of industrial illness. This time a supplemental benefit program is being offered to compensate healthcare workers who contracted COVID-19.
Showing posts with label Second Injury Fund. Show all posts
Showing posts with label Second Injury Fund. Show all posts
Tuesday, June 20, 2023
Tuesday, April 20, 2021
NJ Governor Murphy Concerned About Economically Straining the Second Injury Fund
NJ Governor Philip D. Murphy signed the COVID supplementary dependency bill (S2476 approved 4/19/2021) for essential workers and expressed concern over funding the benefits directly from the Second Injury Fund. He urged that alternate revenue proposals be considered going forward.
Wednesday, June 6, 2018
US Supreme Court - NY State Permitted to Close State Fund
The US Supreme Court [SCOTUS] has declined to review the challenge by multiple insurance carriers to the closure of the New York State Insurance Fund. Consistent with a national trend to terminate Second Injury Funds as being obsolete, economically impractical, and no longer warranted, SCOTUS, by declining the Petition for a writ of certiorari, validated the methodology employed by the State of New York to implement the termination of the Fund.
Friday, April 1, 2016
NJ Supreme Court to Review An Increase of Partial Disability Award in Total Disability Claim
One of the basic tenants of workers' compensation is that awards maybe reviewed and modified where the medical status has changed.1 The NJ Supreme Court on March 14, 2016 granted Certification to review a favorable Appellate Court ruling that permitted a totally and permanently disabled injured worker to receive an increase of a prior (2006 injury) partial disability award, even though the worker had been declared to be totally and permanently disability from a subsequent (2008 injury) injury.
Monday, January 14, 2013
Second Injury Fund: Missouri Auditor Says Fund It, or Shut It Down
Thomas A. Schweich, MO State Auditor (Jan. 11, 2013)
Click here to read to report
Read more about "Second Injury Funds" and workers' compensation
Mar 20, 2012
Workers' Compensation: Are Second Injury Funds Going to be History Soon? As the Second Injury Fund debate in Missouri becomes more heated, one must consider the underlying issues challenging its existence. Whatever ...
Apr 21, 2010
The Missouri legislature failed to pass legislation that would rescue the state's Second Injury Fund (SIF) from financial collapse. The SIF has been long targeted for extinction by Industry in Missouri. The Attorney General order ...
Jan 25, 2010
NJ Second Injury Fund Is In Financial Trouble. Governor Christie's transition team reported that the NJ Second Injury Fund (SIF) is insolvent. Several options were presented, if the SIF is going continue to operate. The SIF was ...
May 09, 2011
In an editorial it declares that injured workers should receive benefits that they have been awarded un the Missouri workers' compensation Second Injury Fund which is now underfunded and unable to meet payment.
Wednesday, December 19, 2012
NJ Workers Compensation Premiums Go Up for 2013
NJ Compensation Rating and Inspection Bureau has announced rate increases for 2013 as follows:
Revision of Rates and Rating Values – Effective January 1, 2013
The Commissioner of Banking and Insurance (“Commissioner”) has approved an 8.3%
increase in manual rates and rating values applicable to New Jersey workers compensation and employers liability insurance effective January 1, 2013 on a new and renewal basis.
SURCHARGES
New Jersey law mandates application of separate policyholder surcharges to finance the
Second Injury and Uninsured Employers’ Funds. Based on the Department of Labor and Workforce Development’s estimate of 2013 Fund requirements, the policyholder surcharge percentages effective January 1, 2013, on a new and renewal basis to be applied to the modified premium are:
Second Injury Fund 6.76%
Uninsured Employers’ Fund 0.00%
Read more about "premiums" and Workers' Compensation:
....
Jon L.Gelman of Wayne NJ, helping injured workers and their families for over 4 decades, is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson).
Revision of Rates and Rating Values – Effective January 1, 2013
The Commissioner of Banking and Insurance (“Commissioner”) has approved an 8.3%
increase in manual rates and rating values applicable to New Jersey workers compensation and employers liability insurance effective January 1, 2013 on a new and renewal basis.
SURCHARGES
New Jersey law mandates application of separate policyholder surcharges to finance the
Second Injury and Uninsured Employers’ Funds. Based on the Department of Labor and Workforce Development’s estimate of 2013 Fund requirements, the policyholder surcharge percentages effective January 1, 2013, on a new and renewal basis to be applied to the modified premium are:
Second Injury Fund 6.76%
Uninsured Employers’ Fund 0.00%
Read more about "premiums" and Workers' Compensation:
Sep 21, 2011
The team also discovered that for the entire 35-year timeframe of the study, rising premium rates were closely linked with the Dow Jones Industrial Average or Treasury bonds. As either the Dow or interest rates on Treasury ...
Jul 18, 2012
Governor Andrew M. Cuomo today announced that for the first time in four years, New York State employers will see a reduction in workers' compensation premium rates. The Governor asked for a reconsideration of the ...
Nov 13, 2012
The study, of what it calls "skyrocketing rates" yielding higher premiums, reveals that higher premiums are instead associated with decreases in the Dow Jones Industrial Average and interest rates on U.S. Treasury bonds.
....
Jon L.Gelman of Wayne NJ, helping injured workers and their families for over 4 decades, is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson).
Saturday, November 24, 2012
The "New Normal," Special Compensation Funds and Viability
The Court , in allowing $4.7 Million to be transferred by the state Legislature to the general treasury, held that the special fund was funding source subject to legislative review and appropriation. “….Because the legislature set the percentage rate of premiums from the State Compensation Fund and private carriers to be placed in the Special Fund, the funds are public monies,” and is therefore a public fund.
Second Injury Funds have been phased out throughout the US. Major industrial states have eliminated them over the past several decades, a move historically supported as employers, insurance companies and the American Bar Association.
New Jersey still has such a fund, ie., The Second Injury Fund. It has been decimated economically after the economic downturn and a series of similar repeated raids by the legislature. While a constitutional amendment has been enacted to prohibit raids, the economy has not increased enough to withstand the fiscal challenges.
Other states face similar problems. Missouri’s fund has not been able to pay beneficiaries for decades as it heads for extinction. New York’s fund has been challenged since assessments are soaring beyond what Industry feels are sustainable in the week economy.
The real challenge facing the nation’s patchwork of workers’ compensation programs is how to fund them generally in light of increased medical costs, lack of premiums due to unemployment and the “new normal” now emerging across the nation.
Read the decision: Industrial Commission of Arizona, et al. v. Janice K. Brewer, Governor, et al. , 1 CA-CV 11-0119 , (AZ App 2012), decided 11/23/2012.
Monday, May 21, 2012
Too Big To Fail?
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| Seal of Missouri. (Photo credit: Wikipedia) |
Read more: No changes made for Missouri injured worker fund
Southeast Missourian
In addition, more than 31000 cases are pending against the Second Injury Fund. The fund is financed through a surcharge that employers pay on their workers' compensation insurance. That charge was capped at 3 percent under a 2005 workers' compensation ...
Monday, April 23, 2012
Federal Court Dismisses Lawsuit to Preserve Missouri Second Injury Fund
A Federal Judge in Missouri dismissed a Federal lawsuit that was filed to forced the State of Missouri to fund its Second Injury Fund for workers' compensation beneficiaries.
The Court held:
“'Decisions over what programs to fund or not to fund generally represent a basic right and power possessed by the legislative branch....' 'Plaintiffs have cited no case law, and the Court is not aware of any, which stands for the proposition that a legislative decision to de-fund a program can represent a taking of a plaintiff’s entitlement.'”
Hon. Nanette Kay Laughrey
Click here to read the decision, Pettet v. May, No. 2:11-CV-04049-NKL (USDC W.D.Mo) Decided April 19, 2012
Click here to read the report in The Kansas City Business Journal
Related articles
The Court held:
“'Decisions over what programs to fund or not to fund generally represent a basic right and power possessed by the legislative branch....' 'Plaintiffs have cited no case law, and the Court is not aware of any, which stands for the proposition that a legislative decision to de-fund a program can represent a taking of a plaintiff’s entitlement.'”
Hon. Nanette Kay Laughrey
Click here to read the decision, Pettet v. May, No. 2:11-CV-04049-NKL (USDC W.D.Mo) Decided April 19, 2012
Click here to read the report in The Kansas City Business Journal
Related articles
Monday, May 9, 2011
Missouri, The Second Injury Fund and Paying Up
The St. Louis Post Dispatch today called upon the State of Missouri to do the right thing and stop hold injured workers hostage. In an editorial it declares that injured workers should receive benefits that they have been awarded un the Missouri workers' compensation Second Injury Fund which is now underfunded and unable to meet payment.
Citing the flight of an injured iron worker, Harold Frick, it calls for immediate payment now and compromise going forward to resolve the economic issues facing the Missouri workers' compensation system. Like most workers' compensation systems throughout the US, Missouri's system is facing serious economic challenges as it is confronted by a declining economic base upon which to draw premiums to support the system,
In order to insure that workers who have been injured previously can obtain gainful employment, the many legislatures created a second injury fund to insulate subsequent employers from responsibility for prior disability if the employee in question became totally disabled from a compensable accident or event during the last employment. The fund was established to encourage the employment of the handicapped by alleviating the burden placed upon the employer for compensation benefits should the injured worker become totally and permanently disabled. A question now exists on how to finance these funds that have disolved already in many jurisdictions.
For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered occupational accidents and illnesses.
Related articles
Citing the flight of an injured iron worker, Harold Frick, it calls for immediate payment now and compromise going forward to resolve the economic issues facing the Missouri workers' compensation system. Like most workers' compensation systems throughout the US, Missouri's system is facing serious economic challenges as it is confronted by a declining economic base upon which to draw premiums to support the system,
In order to insure that workers who have been injured previously can obtain gainful employment, the many legislatures created a second injury fund to insulate subsequent employers from responsibility for prior disability if the employee in question became totally disabled from a compensable accident or event during the last employment. The fund was established to encourage the employment of the handicapped by alleviating the burden placed upon the employer for compensation benefits should the injured worker become totally and permanently disabled. A question now exists on how to finance these funds that have disolved already in many jurisdictions.
For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered occupational accidents and illnesses.
Related articles
Wednesday, April 21, 2010
Rescue Legislation for Missouri Second Injury Fund Fails
The Missouri legislature failed to pass legislation that would rescue the state's Second Injury Fund (SIF) from financial collapse. The SIF has been long targeted for extinction by Industry in Missouri. The Attorney General order the SIF to stop making payments in October 2009.
The national trend for decades has been the closing of SIF's throughout the country. That trend has been advocated by those who claim that Federal legislation now supports hiring the handicapped and that the dollars paid into the SIFs are not being utilized to assist the payment of total disability awards as intended by the acts. The State of New Jersey has recently reported that the NJ Fund is also in financial difficulty.
The national trend for decades has been the closing of SIF's throughout the country. That trend has been advocated by those who claim that Federal legislation now supports hiring the handicapped and that the dollars paid into the SIFs are not being utilized to assist the payment of total disability awards as intended by the acts. The State of New Jersey has recently reported that the NJ Fund is also in financial difficulty.
Monday, January 25, 2010
NJ Second Injury Fund Is In Financial Trouble
Governor Christie's transition team reported that the NJ Second Injury Fund (SIF) is insolvent. Several options were presented, if the SIF is going continue to operate.
The SIF was established to compensate totally disabled workers for their pre-existing disabilities shield the last employer from the total cost of the last compensable injury. The was enacted by NJ prior to the existence of the American With Disabilities Act (ADA) and theoretically was to encourage employers to hire handicapped workers.
Since the enactment of the ADA many states have felt that their was no need to continue the SIFs and the growing trend is to eliminate them. The SIF in NJ currently supports the operating funds on the NJ Division of Workers' Compensation.
The transition report concludes:
"The SIF has been experiencing cash flow problems recently due to diversions from the fund in 2003 and 2004 and also as a result of legislative changes made in 2000 and 2003. Prior to 2000, the assessment against employers and insurance companies that finance the Division of Workers Compensation was determined by estimating the costs incurred to run all programs (including benefits) and multiplying that by 150%. In 2000, this was changed to 125% of estimated benefits and 100% of estimated administrative costs. These changes initially did not cause any significant cash flow issues; however, when the State began diverting money the combination of these factors resulted in an insufficient amount of cash being collected through assessments.
Solutions: Due to the legislative changes to the assessment calculations, the fund will never be able to restore solvency. The only solution requires legislative approval to phase out the $40 million “add back” and adjust the $5 million fund balance cap to a percentage of the prior years’ benefit payments. The only other option would be to find a supplemental appropriation to replenish the diverted money from FY2010."
Historically, surpluses in the NJ SIF have been raided by the Legislature and Governor and the funds diverted to the general treasury of the State. Like other NJ agencies, the NJ Division of Workers' Compensation has been challenged by mandated furloughs and short staffing issues. The fiscal problems of the SIF have compounded Medicare delays in the workers' compensation program in dealing with catastrophic and serious disability claims.
Click here to read more about The Second Injury Fund.
The SIF was established to compensate totally disabled workers for their pre-existing disabilities shield the last employer from the total cost of the last compensable injury. The was enacted by NJ prior to the existence of the American With Disabilities Act (ADA) and theoretically was to encourage employers to hire handicapped workers.
Since the enactment of the ADA many states have felt that their was no need to continue the SIFs and the growing trend is to eliminate them. The SIF in NJ currently supports the operating funds on the NJ Division of Workers' Compensation.
The transition report concludes:
"The SIF has been experiencing cash flow problems recently due to diversions from the fund in 2003 and 2004 and also as a result of legislative changes made in 2000 and 2003. Prior to 2000, the assessment against employers and insurance companies that finance the Division of Workers Compensation was determined by estimating the costs incurred to run all programs (including benefits) and multiplying that by 150%. In 2000, this was changed to 125% of estimated benefits and 100% of estimated administrative costs. These changes initially did not cause any significant cash flow issues; however, when the State began diverting money the combination of these factors resulted in an insufficient amount of cash being collected through assessments.
Solutions: Due to the legislative changes to the assessment calculations, the fund will never be able to restore solvency. The only solution requires legislative approval to phase out the $40 million “add back” and adjust the $5 million fund balance cap to a percentage of the prior years’ benefit payments. The only other option would be to find a supplemental appropriation to replenish the diverted money from FY2010."
Historically, surpluses in the NJ SIF have been raided by the Legislature and Governor and the funds diverted to the general treasury of the State. Like other NJ agencies, the NJ Division of Workers' Compensation has been challenged by mandated furloughs and short staffing issues. The fiscal problems of the SIF have compounded Medicare delays in the workers' compensation program in dealing with catastrophic and serious disability claims.
Click here to read more about The Second Injury Fund.
Tuesday, December 8, 2009
NJ Assembly Passes Bill to Stop Raid on Second Injury Fund
Click here to read more about the Second Injury Fund.
Wednesday, August 26, 2009
Administrative Rules in Workers’ Compensation May Not Infringe Upon The Right to Due Process Court Holds
The right to cross examination medical experts, in a bifurcated claim cannot be extinguished by administrative rules, according to a decision rendered by a NJ Appellate Court.
Friday, July 17, 2009
New Jersey Looking to Hire Attorneys to Work For Free
Relief from the hiring freeze that has stalled some cases before the NJ Division of Workers' Compensation maybe thawing. The Division has been barred from replacing vacancies in the staff of Deputy Attorney Generals who staff the Second Injury Fund.
Recently it was reported in Newark Star Ledger that the freeze has been lifted and the State will hire attorneys who will work for free, About 400 lawyers are registered in the unemployment system.
The Second Injury Fund is represented by the State of NJ. Those cases involve some of the most complicated cases in the state as they all involve allegations total disability matters. The lack of attorneys to represent the Second Injury Fund has resulted in the cancellation of some lists. It is unknown whether paid attorneys could be shifted to this work or whether the State plans to allow the attorneys who are hired for free to to this this assignment.
Tuesday, May 13, 2008
Are Second Injury Funds Going to be History Soon?
Second Injury Funds [SIF] are now undergoing a critical evaluation as the economy continues to deteriorate. Originally created post World War II, the SIFs encouraged the employers to hire handicapped employees who were hired and had pre-existing disability. The concept afforded a shared responsibility through pooled insurance and insulated the employer from the burden of on apportioning liability in total and permanent disability cases.
Recently, however, the SIF had become raided by State politicians in an effort to balance their State budgets. New Jersey highlights such a concern, and within the last decade funds have been raided three times in order to satisfy debt in the general treasury. Not only does it renege on the promise of providing benefits to injured workers, it slows down the bureaucracy of administrating a workers’ compensation program by inadequately funding staff. At recent hearings before the New Jersey State Senate there were a multitude of complaints concerning inadequate staffing of the SIF, including the need for more attorneys to represent SIF. As a result of this outrage there is pending before the state legislature a resolution to amend the New Jersey’s constitution to prohibit such raiding in the future of funds directed to employee benefits.
SIFs had been challenged by the insurance industry over the last 10 years and they have attempted to disband them and wind down their benefit distribution contributions. Such a challenge was recently opposed in the State of Missouri where an attempt to eliminate the SIF by 2011 was defeated.
Opponents the SIF’s indicate that the Americans with Disabilities Act insulates the employee from retaliatory claims, and the SIFs are no longer necessary. Additionally, insurance carriers would like more control over the distribution of the benefit dollars and the SIF appears as an additional obstacle to employers in crafting settlements in total and permanent disability cases.
It is likely that this debate will continue and that the trend towards elimination of SIFs will also continue.
Recently, however, the SIF had become raided by State politicians in an effort to balance their State budgets. New Jersey highlights such a concern, and within the last decade funds have been raided three times in order to satisfy debt in the general treasury. Not only does it renege on the promise of providing benefits to injured workers, it slows down the bureaucracy of administrating a workers’ compensation program by inadequately funding staff. At recent hearings before the New Jersey State Senate there were a multitude of complaints concerning inadequate staffing of the SIF, including the need for more attorneys to represent SIF. As a result of this outrage there is pending before the state legislature a resolution to amend the New Jersey’s constitution to prohibit such raiding in the future of funds directed to employee benefits.
SIFs had been challenged by the insurance industry over the last 10 years and they have attempted to disband them and wind down their benefit distribution contributions. Such a challenge was recently opposed in the State of Missouri where an attempt to eliminate the SIF by 2011 was defeated.
Opponents the SIF’s indicate that the Americans with Disabilities Act insulates the employee from retaliatory claims, and the SIFs are no longer necessary. Additionally, insurance carriers would like more control over the distribution of the benefit dollars and the SIF appears as an additional obstacle to employers in crafting settlements in total and permanent disability cases.
It is likely that this debate will continue and that the trend towards elimination of SIFs will also continue.
Wednesday, April 30, 2008
A Constitutional Amendment To Stop The Raiding Of The Second Injury Fund For The General Treasury is Proposed in New Jersey
An amendment has been proposed, which has received bipartisan support, to stop the raiding of the second injury trust funds and their diversion to the general treasury. Senate Majority Leader Stephen Sweeney has proposed a constitutional amendment [SCR-60] requiring contributions collected from assessments on wages to be used for employee benefits and prohibiting use of the contributions for any other purpose.Over the past years he executive branch has raided the second injury fund trust funds and has diverted the money to the general treasury of the State of New Jersey to cover shortfalls. Second injury fund revenues are collected as a line item surcharge on workers' compensation premiums from all employers of the State of New Jersey. The fund not only supports second injury fund beneficiaries, but it also supports general funding of the New Jersey Division Workers Compensation.
Most states in the United States have eliminated the second injury fund concept. The rationale for elimination of benefits is that the insurance carriers want greater control over the revenue to be paid to beneficiaries involving total disability. Additionally, the second injury fund concept was established in order that employers hire handicapped employees. It is now considered that the Americans With Disabilities Act affords protection to injured workers who have disabilities and the second injury funds are no longer required.
The proposed resolution is receiving bipartisan support and should it be adopted the constitutional question will appear on the ballot as a Constitutional amendment to be voted upon by all citizens of the state of New Jersey.
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