On February 22, 2012, an arm of Public Employers Risk Management Association (PERMA) released a “report” claiming that workers’ compensation assessments are a “tax” that is dramatically increases employer costs. This “report” was filled with misleading statistics and misinformation, to which the WCA responded on March 16, 2012.
On September 10, 2012, PERMA released a “new” report that simply repackages its prior claims, perpetuating the same factual and legal inaccuracies.
The WCA believes that sound public policy must be based on accurate information, and not mischaracterizations of the facts and misstatements of the law. As a result, the WCA has again responded to PERMA’s release and set the record straight.
The key points of the WCA report are:
– Assessments are not a “tax.” To the contrary, most assessments are a reinsurance system that benefits employers and insurance carriers. According to PERMA’s own report, nearly 80% of assessments relate to the Special Funds, which reimburse money to employers and carriers. Almost 98% of the money employers and carriers pay in assessments related to the Special Funds is returned to those same employers and carriers.