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Workers’ Comp seeks 881 percent hike in funding
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Posted on Mar 12 2005
The NMI Retirement Fund is asking the government to increase the annual funding for the Workers’ Compensation Commission from $80,000 to $785,000—an increase of 881 percent.
“In the past, we only got $80,000 but based on our experience, it’s insufficient,” said Fund administrator Karl T. Reyes Friday.
The NMI Fund manages the WCC, which according to a 2003 audit report, operates without reserve funds to meet potential claims of its over 5,000 members.
Reyes said that, as of 2003, WCC spent a total of $1.1 million for personnel and claims costs.
He said that, in the last two years alone, WCC handled two major cases which cost the commission over $500, 000 each.
To mitigate the situation, Reyes said the Fund board approved last Thursday a $1.3 million 2006 budget for WCC. This includes over $700,000 from the government.
“Of all Fund programs, WCC is the only one that gets funding from the government. Everything else we handle ourselves,” said Reyes.
Reyes said the government knows full well that WCC is underfunded, citing a report done by J. Scott Magliari & Co., which showed that WCC is exposed to a potential liability claim of $208 million.
WCC covers death claims amounting to $40,000 as well as injury and medical claims.
Reyes said that in the past, death claims proved more manageable than injury or medical claims. “Medical costs due to injury usually turns out to be a lot more.”
