Overview
The New York State Legislature amended the Workers' Compensation Law on March 31, 2011, which enacted significant changes to the existing group self-insurance program. The bill was signed into law on April 1, 2011 as Chapter 57 of the Laws of 2011.
Employer Eligibility
The changes to the Law repeals the current provisions of the Law authorizing group self-insured trusts and replaces them with a new program that allows only the most financially stable group trusts to continue to offer coverage. Any existing group that met the new criteria had to reapply and qualify under these new provisions.
These changes became effective January 1, 2012.
Groups that met the minimum qualifications outlined under the new legislation were allowed to continue to offer coverage provided they met and continue to meet the new provisions of the Law, including security deposit posting requirements outlined therein.
Groups that did not meet the new criteria were terminated effective December 31, 2011 and their members had to provide alternate coverage for their employees.
The current program, called the Self-Insured Group (SIG) Program is limited to the groups that met the new provisions and chose to continue their program under the amended Law. In accordance with the amended Law, no new employer groups can be approved to self-insure.
Opportunities for membership in an existing SIG are further limited to the homogeneity requirements of the current Self-Insured Groups.
Report of Group Self Insurers
For information regarding active groups, please access the group status report.
Assessments
Chapter 57 of the Laws of 2013 authorized the Workers' Compensation Board (Board) to streamline the manner in which it collects its administrative and special fund assessments and implement a process that will be consistent among the various categories of payers and based upon active coverage. The Board expects the assessment process will offer all payers a more equitable, predictable and efficient manner to manage their share of Board assessment expenses.
Pursuant to WCL §151, the Chair shall annually establish an assessment rate to be effective January 1 of the subsequent calendar year. In accordance with Title 12 NYCRR Part 318 that governs the assessment process, the assessment rate will be determined by dividing the total estimated annual expenses by a base of total estimated statewide premium. All payers will be required to apply the assessment rate to their premium or premium equivalent and submit payment quarterly.
Information is available on the rules and regulations that govern the assessment process, prescribed forms, frequently asked questions, as well as other information related to assessments.
Questions may be sent to: WCBFinanceOffice@wcb.ny.gov
- Annual Assessment Base Factor Form (Form GA-1.6)
- Private Self-Insurers Remittance Form (Form GA-3)
- Annual Private Self-Insured Assessment (Form GA-5 50-5)
- FAQs
Terminating Self-Insurance
A self-insurer who has discontinued business in New York State, or has arranged for the payment of compensation by alternate methods (NYSIF or insurance carrier coverage), may terminate their status as a self-insurer at any time by notifying the Office of Self-Insurance.