The national trend for decades has been the closing of SIF's throughout the country. That trend has been advocated by those who claim that Federal legislation now supports hiring the handicapped and that the dollars paid into the SIFs are not being utilized to assist the payment of total disability awards as intended by the acts. The State of New Jersey has recently reported that the NJ Fund is also in financial difficulty.
Showing posts with label Second Injury Fund. Show all posts
Showing posts with label Second Injury Fund. Show all posts
Wednesday, April 21, 2010
Rescue Legislation for Missouri Second Injury Fund Fails
The Missouri legislature failed to pass legislation that would rescue the state's Second Injury Fund (SIF) from financial collapse. The SIF has been long targeted for extinction by Industry in Missouri. The Attorney General order the SIF to stop making payments in October 2009.
The national trend for decades has been the closing of SIF's throughout the country. That trend has been advocated by those who claim that Federal legislation now supports hiring the handicapped and that the dollars paid into the SIFs are not being utilized to assist the payment of total disability awards as intended by the acts. The State of New Jersey has recently reported that the NJ Fund is also in financial difficulty.
The national trend for decades has been the closing of SIF's throughout the country. That trend has been advocated by those who claim that Federal legislation now supports hiring the handicapped and that the dollars paid into the SIFs are not being utilized to assist the payment of total disability awards as intended by the acts. The State of New Jersey has recently reported that the NJ Fund is also in financial difficulty.
Monday, January 25, 2010
NJ Second Injury Fund Is In Financial Trouble
Governor Christie's transition team reported that the NJ Second Injury Fund (SIF) is insolvent. Several options were presented, if the SIF is going continue to operate.
The SIF was established to compensate totally disabled workers for their pre-existing disabilities shield the last employer from the total cost of the last compensable injury. The was enacted by NJ prior to the existence of the American With Disabilities Act (ADA) and theoretically was to encourage employers to hire handicapped workers.
Since the enactment of the ADA many states have felt that their was no need to continue the SIFs and the growing trend is to eliminate them. The SIF in NJ currently supports the operating funds on the NJ Division of Workers' Compensation.
The transition report concludes:
"The SIF has been experiencing cash flow problems recently due to diversions from the fund in 2003 and 2004 and also as a result of legislative changes made in 2000 and 2003. Prior to 2000, the assessment against employers and insurance companies that finance the Division of Workers Compensation was determined by estimating the costs incurred to run all programs (including benefits) and multiplying that by 150%. In 2000, this was changed to 125% of estimated benefits and 100% of estimated administrative costs. These changes initially did not cause any significant cash flow issues; however, when the State began diverting money the combination of these factors resulted in an insufficient amount of cash being collected through assessments.
Solutions: Due to the legislative changes to the assessment calculations, the fund will never be able to restore solvency. The only solution requires legislative approval to phase out the $40 million “add back” and adjust the $5 million fund balance cap to a percentage of the prior years’ benefit payments. The only other option would be to find a supplemental appropriation to replenish the diverted money from FY2010."
Historically, surpluses in the NJ SIF have been raided by the Legislature and Governor and the funds diverted to the general treasury of the State. Like other NJ agencies, the NJ Division of Workers' Compensation has been challenged by mandated furloughs and short staffing issues. The fiscal problems of the SIF have compounded Medicare delays in the workers' compensation program in dealing with catastrophic and serious disability claims.
Click here to read more about The Second Injury Fund.
The SIF was established to compensate totally disabled workers for their pre-existing disabilities shield the last employer from the total cost of the last compensable injury. The was enacted by NJ prior to the existence of the American With Disabilities Act (ADA) and theoretically was to encourage employers to hire handicapped workers.
Since the enactment of the ADA many states have felt that their was no need to continue the SIFs and the growing trend is to eliminate them. The SIF in NJ currently supports the operating funds on the NJ Division of Workers' Compensation.
The transition report concludes:
"The SIF has been experiencing cash flow problems recently due to diversions from the fund in 2003 and 2004 and also as a result of legislative changes made in 2000 and 2003. Prior to 2000, the assessment against employers and insurance companies that finance the Division of Workers Compensation was determined by estimating the costs incurred to run all programs (including benefits) and multiplying that by 150%. In 2000, this was changed to 125% of estimated benefits and 100% of estimated administrative costs. These changes initially did not cause any significant cash flow issues; however, when the State began diverting money the combination of these factors resulted in an insufficient amount of cash being collected through assessments.
Solutions: Due to the legislative changes to the assessment calculations, the fund will never be able to restore solvency. The only solution requires legislative approval to phase out the $40 million “add back” and adjust the $5 million fund balance cap to a percentage of the prior years’ benefit payments. The only other option would be to find a supplemental appropriation to replenish the diverted money from FY2010."
Historically, surpluses in the NJ SIF have been raided by the Legislature and Governor and the funds diverted to the general treasury of the State. Like other NJ agencies, the NJ Division of Workers' Compensation has been challenged by mandated furloughs and short staffing issues. The fiscal problems of the SIF have compounded Medicare delays in the workers' compensation program in dealing with catastrophic and serious disability claims.
Click here to read more about The Second Injury Fund.
Tuesday, December 8, 2009
NJ Assembly Passes Bill to Stop Raid on Second Injury Fund
Click here to read more about the Second Injury Fund.
Wednesday, August 26, 2009
Administrative Rules in Workers’ Compensation May Not Infringe Upon The Right to Due Process Court Holds
The right to cross examination medical experts, in a bifurcated claim cannot be extinguished by administrative rules, according to a decision rendered by a NJ Appellate Court.
Friday, July 17, 2009
New Jersey Looking to Hire Attorneys to Work For Free
Relief from the hiring freeze that has stalled some cases before the NJ Division of Workers' Compensation maybe thawing. The Division has been barred from replacing vacancies in the staff of Deputy Attorney Generals who staff the Second Injury Fund.
Recently it was reported in Newark Star Ledger that the freeze has been lifted and the State will hire attorneys who will work for free, About 400 lawyers are registered in the unemployment system.
The Second Injury Fund is represented by the State of NJ. Those cases involve some of the most complicated cases in the state as they all involve allegations total disability matters. The lack of attorneys to represent the Second Injury Fund has resulted in the cancellation of some lists. It is unknown whether paid attorneys could be shifted to this work or whether the State plans to allow the attorneys who are hired for free to to this this assignment.
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