Filing marks eighth consecutive decrease; cumulative 55% decrease since 2004

SAN FRANCISCO – State Compensation Insurance Fund today announced it filed July 1, 2007 workers’ compensation insurance rates calling for an 11% average decrease in collectible premium. The new rates will affect new and renewal workers’ compensation policies with an effective date on or after July 1, 2007. The filing is State Fund’s eighth consecutive rate reduction.

Small employers (premiums between $1,000 and $75,000) with superior safety records will continue to receive a 10% workplace safety credit. "Small businesses account for a major portion of the California economy and State Fund is pleased to be able to pass on savings to reward these employers for maintaining safe workplaces," said Interim State Fund President Lawrence Mulryan.

State Fund’s rates have fallen steadily since 2003, and the decreases over the past four years now reflect a cumulative savings of 55% below pre-2004 rate levels. Contributing to the 11% reduction in collectible premium is an average 8% percent reduction in manual rates.

Mr. Mulryan commented, "We are continuing to see significant decreases in cost that are directly attributable to the 2004 passage of SB 899, the Governor's reform legislation, as well as AB 227 and SB 228 in 2003. State Fund will pass these savings back to employers in the form of lower rates to help the California economy continue to grow."

State Fund Board Chair Jeanne Cain said, "The 11% rate decrease represents State Fund's ongoing commitment to deliver excellent service to California employers and their employees at the lowest possible cost. State Fund has provided stability to the workers' compensation market for 93 years and we are proud to carry on that tradition."

Editor's Note: State Fund has approximately 222,000 policyholders ranging from small businesses to large group associations. Created by the California Legislature in 1914, State Fund is a nonprofit, self-supporting, fairly competitive public enterprise that guarantees a permanent workers’ compensation insurance marketplace at cost for California employers. State Fund has acted as both a moderating and stabilizing influence on the workers’ compensation market. .