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Senate approves indexing for Employers Reinsurance Fund, sponsor says employer cost impact will be small
Summary
Senate Bill 13, intended to index the Employers Reinsurance Fund to maintain a $5 million floor and permit actuarially recommended adjustments, passed the Senate after sponsor testimony estimating a small employer cost increase and assurances the fund can only be used in limited ways.
Senate Bill 13, which would index the Employers Reinsurance Fund to preserve a $5 million target and authorize related technical changes, passed the Senate after sponsor remarks and floor questions.
Sponsor (Senator Tempest) said actuaries recommended indexing the fund “to keep it at $5,000,000” and defended the bill as a measure to ensure funds are available for their intended purpose. He acknowledged concerns that indexing could allow the fund to grow substantially over time but said statutory limits prevent inappropriate use. “The actuaries have recommended to the Industrial Commission that this be indexed to keep it at $5,000,000 ... and let me assure you, it won't be, because it can only be used in certain ways,” the sponsor said.
A floor estimate presented during debate suggested the bill would produce a modest increase in employer costs — described on the floor as roughly 0.25 percentage points for a limited period, with an illustrative cost for a small employer given in the discussion — and senators asked staff to provide statistics to address remaining concerns.
The clerk reported the vote for SB13 as 22 ayes, 3 nays and 4 absent; the bill was referred to the House for further action.
