Columbus, Ohio – Ohio Governor Ted Strickland today signed House Bill 100, the Bureau of Workers’ Compensation budget bill for fiscal years 2008 and 2009, which includes significant reforms of the bureau’s governing and oversight structures.
The BWC budget for fiscal years 2008 and 2009 is $328.9 million and $329.2 million respectively.
“With the appointment of Bureau of Workers’ Compensation administrator Marsha Ryan and this new budget, we are significantly improving the state's ability to ensure integrity and accountability at the BWC,” Strickland said. “Its reforms will allow us to continue caring for injured workers in a system that Ohio businesses can afford. Leaders in both parties deserve great credit for putting partisanship aside to make this budget a reality."
The Ohio Bureau of Workers’ Compensation underwrites insurance coverage for work-related injuries and illnesses for public and private sector employers conducting business in Ohio and oversees the workers’ compensation programs for self-insured employers.
The budget replaces the current Bureau of Workers’ Compensation Oversight Commission, which primarily has advice and consent powers, with an independent, external board of directors. The professionalized, independent board will be held accountable for its operations. The independent board of directors will be comprised of 11 members, including business and labor representatives and financial experts, who will be appointed by the governor through recommendations of a nominating council.
Among its responsibilities, the board of directors is charged with establishing the overall administrative policy of the Bureau of Workers’ Compensation, approving investment policy and reviewing progress in meeting cost and quality objectives.
The budget also establishes three subcommittees of the board of directors to provide independent advice and verification of BWC financial and operational performance: an audit committee, an investment committee and an actuarial committee.
The audit committee will interview and recommend to the board of directors the accounting firm performing the annual audit and evaluate the annual audits. The investment committee will develop and monitor the implementation of investment policies. The actuarial committee will guarantee that the BWC’s rate-setting operations are carried out at the highest level of integrity.
The BWC Board of Directors Nominating Council must recommend to the governor four nominees for each of the 11 board positions within 30 days. The nominating council will consist of 13 members, including the director of the Department of Development as chair.
The governor will meet annually with the board of directors to discuss the performance of the BWC administrator. The governor retains the authority to hire and fire the administrator; the hiring is subject to advice and consent of the Ohio Senate.
The budget also creates the position of deputy inspector general for the Bureau of Workers’ Compensation and the Industrial Commission, which will serve as the internal inspector for those agencies and investigate wrongful acts or omissions committed by officers or employees.
“Reforming the BWC and ensuring proper oversight of the bureau’s actions are significant steps toward restoring Ohioans’ trust in their government,” Strickland said.
The Ohio Bureau of Workers’ Compensation is the largest exclusive state-funded workers’ compensation system in the country, with more than $19 billion in assets.
In fiscal year 2006, BWC provided workers’ compensation to more than 288,000 employers, processed more than 188,000 new claims and paid out more than $1.9 billion in benefits.
HB 100 also includes the budget for the Ohio Industrial Commission for fiscal years 2008 and 2009. The OIC conducts hearings on workers’ compensation issues and is responsible for providing fair, impartial and easily accessible resolutions to disputes.
Applications for nominations are available at www.ohiobwc.com, under application materials for the Ohio Bureau of Workers' Compensation Board of Directors.