Ohio Bureau of Workers’ Compensation (BWC) directors approved Gov. Mike DeWine’s $1.6 billion proposed dividend payment to employers in an emergency meeting Friday morning to soften the economic damage of COVID-19.
According to the BWC:
- This dividend equals approximately 100% of the premiums employers paid in policy year 2018.
- BWC will apply the dividend to an employer’s outstanding balances first, including the recent installment deferrals. Any amounts exceeding outstanding balances will be sent to the employer. For those employers, it means one less bill to worry about.
- As in previous years, the dividend is possible due to strong investment returns on employer premiums, a declining number of claims each year, and prudent fiscal management. It’s also due to employers who work hard to improve workplace safety and reduce injury claims.
- Even with the downturn in the market, BWC can provide this dividend to employers while maintaining funds to take care of injured workers for years to come.
- Approximately $1.4 billion will go to private employers.
- Approximately $200 million will go to local government taxing districts (counties, cities, schools, etc.).
- Checks will start going out later this month.
- This is BWC’s sixth dividend of $1 billion or more since 2013.