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Ratification of Payment of CY 2024 Louisiana Second Injury Fund Assessment
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DESCRIPTION: Ratification of Payment of CY 2024 Louisiana Second Injury Fund Assessment
AGENDA NO: Click or tap here to enter text.
ACTION REQUEST:
? Approval ? Review Comment ? Information Only ? Other
RECOMMENDATION:
recommendation
Board ratification of action taken by the Chief Executive Officer to timely pay the CY 2024 Louisiana Second Injury Fund assessment to the Louisiana Workforce Commission/Office of Workers' Compensation.
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ISSUE/BACKGROUND:
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The Louisiana Workers' Compensation Second Injury Fund is a State agency which reimburses employers, or if insured, their insurance carriers, for part of their workers' compensation costs in certain instances when an employee with a pre-existing permanent partial disability is injured on the job. The fund is designed to encourage employers to hire disabled employees.
Pursuant to Louisiana Revised Statute 23:1377, the Office of Workers' Compensation Administration Second Injury Board sets the annual assessment rate. For CY 2024, the assessment rate is 7.25%. This rate is based upon the total workers' compensation benefits paid during CY 2023 by all Louisiana employers and insurers and then applied to the total workers' compensation benefits paid to RTA employees in CY 2023.
In CY 2023, RTA paid $1,511,589.47 in total assessable workers' compensation. With the applicable assessment rate of 7.25%, the CY 2024 RTA assessment is therefore $109,590.24.
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DISCUSSION:
Historically, RTA's annual payments to the Fund have been below the $100,000 threshold requiring RTA Board approval. Due to an increase in RTA's CY 2023 workers' compensation benefits
paid to employees, the CY 2024 assessment amount is set at $109,590.24. Notification of this assessment, though dated November 21, 2024, was received on December 4, 2024, requiring immediate processing and payment to avoid penalty.
FINANCIAL IMPACT:
$109,590....
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