09/30/2020
Another $1.5 Billion for Ohio Employers
Source: Ohio Bureau of Workers' Compensation, September 30, 2020
The Bureau of Workers’ Compensation has officially announced that they will provide a 1.5 billion dollar dividend to Ohio employers to ease the economic pressures created by the Covid-19 pandemic. This is the second rebate provided by BWC this year and will return 100% of eligible employers billed premium for the July 1,201 through June 30, 2020 policy year.
Why is BWC giving a dividend?
We are issuing a dividend of up to $1.5 billion to ease the financial pressures your organization may be experiencing amid the coronavirus (COVID-19) pandemic. This is our second dividend of this magnitude this year, following Gov. DeWine’s order that his agencies do everything they can to mitigate COVID-19’s impact on Ohioans. Even after the dividend, the net position of the State Insurance Fund for injured workers remains strong due to investment returns, declining injuries and decreasing reserves.
Please note: Because BWC is providing two dividends in the same year, we are not expecting to issue a dividend in 2021.
How much will an employer receive?
BWC defines the private employer dividend as 100% of billed premium for eligible employers for the policy period of July 1, 2019 through June 30, 2020. BWC will apply the percentage to the blended premium amount. BWC defines the public employer dividend as 100% of billed premium for eligible employers for the policy period of January 1, 2019 through December 31, 2019. BWC will apply the percentage to the blended premium amount.
When will I receive my dividend?
BWC will mail dividend checks to eligible employers in late October and early November.
I have an outstanding balance on my account. How will this impact my dividend?
An employer who has an outstanding balance — including but not limited to deferred installments, balances in an appeal status and balances owed resulting from a transfer of experience or liability from a predecessor entity — will have its dividend payment reduced by the amount of the outstanding balance. If an employer’s outstanding balance exceeds the dividend amount, BWC will offset the employer’s account by the amount of the dividend.
An employer whose dividend is applied to an outstanding balance will receive detail regarding how the dividend was applied on their next scheduled invoice. Employers will be able to see their updated account information at any time on bwc.ohio.gov.
I am in a group-retrospective-rating program. How will BWC calculate my dividend?
BWC defines premium for private and public group-retrospective-rated employers as individual, experience-rated premium.
I am in a Deductible Program. How will BWC calculate my dividend?
BWC defines premium for private employers participating in a Deductible Program as discounted, blended premium.
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