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MISSOURI
DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS
Jefferson City, MO –
FOR MORE INFORMATION CONTACT: Barb Meyer or Karla Hogg at (573)
751-7500
FOR IMMEDIATE RELEASE: October 29, 2004
Missouri Workers' Compensation
Administrative Tax Abated for 2005; Decline in Second Injury Fund
Surcharge
Governor Bob Holden announced today that the administrative tax on Missouri workers compensation insurance premiums will be abated in 2005, saving employers more than $18 million.
The administrative
tax will decline to 0
percent of premiums next year. This reduction will be reflected in
payments
made in 2006. The surcharge that funds benefits from the Second Injury
Fund
will decline to 3.5 percent, saving employers more than $9 million in
2005.
"This administration is
committed to working with the business community to reduce workers'
compensation costs while maintaining the integrity of the workers'
compensation
system," Holden said.
Gary Estenson, Acting Director of
the Division of Workers Compensation, said the ongoing streamlining
procedures
in the office allow the department to abate the tax.
Division streamlining efforts include increased use of
electronic
filings and electronic communications with employers and claimants
about docket
settings that have significantly reduced mail costs.
“Not only have these measures proven extremely cost-effective, but instantaneous communications have reduced case processing time and also reduced the error rate for information exchanged between the Division and Division constituents. " Estenson said.
State law requires the director of
the division of workers' compensation to determine the rate of tax to
be paid
in the following calendar year, based on projected expenditures. The revenue from the Second Injury Fund
surcharge pays benefits to injured workers who had previous
disabilities. The amount of surcharge must
be adequate to
cover payments from the fund during the calendar year.
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Information and Planning · 3315 W. Truman
Blvd.
· P.O. Box 1958 · Jefferson City, MO
65102-1958
573-751-7500 · 573-751-6552 (Fax)
Relay Missouri: 1-800-735-2966 (TDD) 1-800-735-2466 (Voice)