The City of North Royalton and the North Royalton School District will be receiving a check from the Ohio Bureau of Worker’s Compensation (BWC) to rebate premiums paid. This practice takes place every few years, according to North Royalton Finance Director, Eric Dean. Ohio cities, schools and other employers are receiving rebates for workers’ compensation premiums combined at more than $1 billion. Refunds also were made in 2013 and 2014.
Governor John Kasich stated earlier this year that he wanted to return $1 billion to over 200,000 public and private employers, ranging from $5 to tens of millions of dollars. Most rebates will equal 66% of the employer’s premium for the policy year ending June 30, 2016. The checks were to go start being distributed at the end of July, but neither the city or schools has received their check.
The billion-dollar rebate comes from excess funds in the Bureau of Workers’ Compensation’s net assets, which exceed $8 billion. According to Kasich, the larger assets were generated by strong investment management practices. Mayor Bob Stefanik said, “they raised the rates a couple of years ago and now it’s our money they’re rebating. In 2016, the City of North Royalton paid $231,673.57 in workers’ compensation premiums. They had $142,746.38 in claims, according to Dean. He said they expect to pay over $240,000 for 2017, and the claims are lower to date, about $48,000.
The Ohio Bureau of Workers’ Compensation (BWC) represents about 250,000 employers, who pay premiums to them in order to 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,” according to Ohio BWC officials. “An improving safety climate, good fiscal management and better than expected investment returns have resulted in the State Insurance Fund having a net position of more than $9 billion. So, for the third time in four years, BWC will return more than $1 billion dollars to Ohio’s private and public employers. Combined with nearly 30 percent in average rate cuts and $3 billion in previous rebates and credits, this rebate means BWC will have helped return more than $6 billion to Ohio’s economy.” The Ohio BWC annual report for the year ending in June 2016, states that the bureau paid out $580.3 million in medical benefits and $1.02 billion in compensation.
“After the rebates are paid, the bureau will have close to $9 billion on hand,” according to Ohio BWC officials. The city of is receiving $7.4 million. Cleveland schools are getting $2.3 million. Akron – $1.5 million. The city of North Royalton will receive $166,837 and the North Royalton School District will receive $94,015.
Dean noted that the city will hopefully be paying decreased premiums, starting in 2018, as they will be in a pool with other cities, which will help spread the risk and reduce the premium, which is expected to be about $150-180,000. Stefanik also noted the city employees work hard to prevent safety issues, which also pays off in reduced claims.
By GLORIA PLEVA KACIK
Contributing Writer