SAN FRANCISCO – State Compensation Insurance Fund announced the filing of its January 1, 2008 rating plan, making no change in the average collectible rate level. State Fund’s rate level remains 55% below pre-reform 2003 rate levels. The new rates will apply to new and renewal workers’ compensation policies with an effective date on or after January 1, 2008.

State Fund’s rating plan adopted the Workers’ Compensation Insurance Bureau’s recommended changes in individual class loss costs. Individual employers will therefore see differences in their pricing due to changes in their classification loss costs, their experience modifications, and other changes in rating plan features. Overall, however State Fund’s average collectible rate level will be unchanged.

Small employers (premiums between $1,000 and $59,999) with superior safety records will continue to receive a 10% workplace safety credit. "Small businesses are crucial to the California economy. State Fund is pleased to be able to reward these employers for maintaining safe workplaces," said State Fund President Janet Frank.

State Fund held the line on rates despite the Workers’ Compensation Insurance Rating Bureau’s filed recommendation for a 5.2% average rate increase effective January 1. Ms. Frank commented, "Employers are enjoying the benefit of a healthy, competitive workers’ compensation market that is directly attributable to passage of the Governor’s reform legislation in 2004, SB 899, and earlier 2003 reform legislation, AB 227 and SB 228. State Fund’s rate filing reflects our role as a carrier of choice for many employers, as well as the safety net for any employer needing workers’ compensation insurance in California."

State Fund Board Chair Jeanne Cain said, "I am very proud of State Fund’s track record for providing excellent service to California employers and their employees at the lowest possible cost. Prices are down substantially from their high point in 2003 and stable going into 2008. In 2008 State Fund will mark its 94th year of providing stability to the workers' compensation market and we are proud to carry on that tradition."

EDITOR’S NOTE: Established by the California Legislature in 1914, San Francisco-based State Compensation Insurance Fund is a self-supporting, nonprofit, fairly competitive public enterprise that provides workers’ compensation insurance coverage at cost to California employers.