Workers comp rebate would return $1.5B to Ohio employers

Written on Apr 26, 2018

Hannah News Service

Gov. John Kasich and Ohio Bureau of Workers' Compensation Administrator/CEO Sarah Morrison announced a $1.5 billion employer rebate Tuesday based on strong investment returns, becoming the administration's fourth "billion dollars back" since 2013.

Morrison said the $1.5 billion rebate, which still needs approval from the bureau’s board of directors, would include $48 million for public schools and $111 million for local government jurisdictions. With past rebates, billing credits, rate cuts and grants factored in, she said the latest “billion back” would bring total BWC savings to $8 billion under the Kasich administration.

As with past rebates, she gave BWC investments the lion’s share of the credit for the latest billion dollars back.

“We’ve had healthy income and returns on our investment portfolio, and it’s only right to share that success with our private and public employers,” she said. “We know that the more money we leave with the employer, the more they can invest in their employees and grow their business.”

Morrison said BWC’s net position was $11 billion in assets in February. Mark Palmer, the board’s investment committee chairman, attributed BWC investment growth to the addition of real estate and international stocks to the bureau’s previous portfolio of U.S. stocks and bonds. The governor interjected to say he had blocked the use of hedge funds.

“We want diversity, we want growth, but we want conservative [investments],” he said.

With employee claims correspondingly down, Kasich asked Palmer what he “worried” about going forward. “Health care costs,” the committee chairman replied.

Please click here and here for more information on the rebate from the BWC.

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