COLUMBUS — Another strong year of investment returns for Ohio’s insurance fund for injured workers justify an additional $1.5 billion in rebate checks for public and private employers, the agency said Monday.
Gov. Mike DeWine made the announcement after touring one of those employers, DynaLab Electronic Manufacturing Services in Reynoldsburg. If approved by the governing board of the Bureau of Workers’ Compensation at its meeting next month, this would mark the sixth round of such rebates totaling $5.7 billion since 2011. The checks could be in the mail in September.
“This money will help Ohio employers expand their businesses, create jobs, and invest in capital improvements,” Mr. DeWine said. “Ohio’s economy is strong, and this proposal reinforces our goal of creating more jobs in the state.”
Such announcements have become almost an annual rite of spring, first under former Gov. John Kasich and now under his successor, a fellow Republican. But the bureau has warned the roughly 240,000 employers that pay premiums into the fund not to assume economic conditions that will allow for continued rebates in the future.
Bureau officials have also opted to cut rebate checks rather than work those savings into additional premium cuts, another indication that they shouldn’t be considered a guaranteed annual source of revenue.
Last year the BWC also cut checks for $1.5 billion. In all, the BWC figures it has given back nearly $10 billion through rebates, premium reductions, credits, and safety grants since 2011.
Of the $1.5 billion, about $114 million would go to local governments and $50 million to schools. Local governments in Lucas County would see a little more than $7 million, while schools in the county would see nearly $2.2 million.
The bureau’s investments earned $1.3 billion, or 5.1 percent, last year on total assets valued at $26.9 billion.
“Our investment portfolio is strong, our injury claims are falling, and our safety and wellness initiatives are making a difference,” BWC Administrator Stephanie McCloud said. “All of these actions mean big savings for employers, and we’re delighted to share this success with them.”
This year’s rebate, if approved, would equal 88 percent of the total premiums paid by employers for the year that ended on June 30, 2018.
First Published May 20, 2019, 5:13 p.m.
