Senate Bill 929, which concerns certain workers' compensation supplemental benefits, was sent to the General Assembly's Labor Committee this week. No hearings are scheduled on the proposed legislation and the Assembly is on summer break until September. The bill, which is anticipated to cost $58 million annually in fiscal year 2018, has vociferous objections from the New Jersey Chamber of Commerce, the New Jersey Food Counsel and the New Jersey Business Industry Association.
All costs are to be offset by additional surcharges levied on certain workers' compensation policy holders and self-insured employers that are deposited into the Second Injury Fund.
The fiscal year 2015 budget recommendation proposes an increase of $23.388 million (13.6 percent) in all other funds for the Special Compensation Program. This increase is reflected in a $22.984 million increase in appropriated receipts from the Special Compensation Fund (p. C-13), more commonly known as the Second Injury Fund (SIF). (The discrepancy in revenue versus expenditures is due to the overlap of the fiscal year with the calendar year, which is used to calculate the assessment for the fund.) The SIF is funded entirely by an assessment on workers' compensation policy holders. The increase is due to an increase in the costs of anticipated claims and fringe benefits for employees of the Division of Workers' Compensation, according to the Department of Labor and Workforce Development.
The SIF was established pursuant to R.S.34:15-94, and provides workers' compensation benefits to totally and permanently disabled workers with prior, work-related disabilities.
By: Richard Tavani