The Second Injury Fund operations are financed by assessments on all Connecticut employers. The State Treasurer, as Custodian of the Fund, establishes the assessment rate on or before May 1st of each year.
Insured employers pay a surcharge on their workers' compensation insurance policies based on "direct written premiums" calculated and issued by insurance companies who collect and remit this assessment to the Fund. The assessment for self-insured employers is based on "paid losses" for medical and indemnity benefits incurred in the prior calendar year.
There were 4 assessments made in Fiscal Year 2022 on insured employers totaling $24.2 million. Self-insured employers were assessed 4 times during Fiscal Year 2022 totaling $4.6 million for a combined assessment on all Connecticut employers of $28.8 million for Fiscal Year 2022.
Assessment rates, which are used to determine how much Connecticut businesses will pay to the Fund have either remained the same or been reduced over the past twenty-two years.
For insurers, the assessment rate for fiscal year 2023 will remain at 2.25%. Concurrently, the rate for self-insured employers will be 2.75%. The rate is 1.56% for assigned risk policies. By maintaining low assessment rates Connecticut businesses are projected to save $5.8 million during Fiscal Year 2023.