NYS Assessment Changes: Updates
On October 23, 2013, the NYS Workers’ Compensation Board released a bulletin regarding the NYS Assessment Changes effective January 1, 2014. The bulletin advised that the NYS Assessment rate will be 13.8% of the standard premium or premium equivalent for self-insured employers. This rate is a result of the Business Relief Act, a part of the 2013-2014 NYS Budget that aimed to assist employers with growing Workers’ Compensation costs.
The Act mandated that the NYS Workers’ Compensation Board create a single assessment methodology for all employers, regardless of their coverage type. The result of this Act means that the NYS Assessment charge for 2014 is 25% lower than 2013, saving NYS employers about $300 million. By creating a single NYS Assessment system for all carriers to use, NYS Workers’ Compensation will see lower assessment costs, a more streamlined process, and a more modern billing system.
New Rating Board Filings Submitted Due to NYS Assessment Changes
The NY Compensation Insurance Rating Board has submitted two filings for review and approval to the Department of Financial Services (DFS) related to the NYS Assessment changes. The first asks for a revision to the NY Workers’ Compensation manual that aligns instructions in the manual with the method the Workers’ Compensation Board has determined to use for the NYS Assessment. The second requests an adjustment to the loss cost for several classes in the Maritime, Admirality and Federal Industry Group, and a revised US Longshore Compensation Coverage Percentage. Because these values have been historically dependent on the NYS Assessment rate, an adjustment is needed to remove the NYS Assessment component of these values from the calculation.
These updates follow the information from the previous blog entry on the NYS Assessment changes found here. With the NYS Assessment changes taking place effective 1/1/14, most employers will see a slight decrease in their Workers’ Compensation insurance costs. For more information on this as well as a competitive quote, call us today at 212-948-4298.