COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 2004-29

July 1, 2004

TO THE HEADS OF ALL STATE AGENCIES

Attention: Fiscal and Administrative Officers, Business Managers, and Payroll and Personnel Officers
Subject: Workers' Compensation Cost Recovery - 2004-05 Reimbursement Rates

All State agencies charging personal service expenditures to funds other than General Fund Budgeted Appropriations are required to reimburse the General Fund or Transportation Fund for the cost of Workers' Compensation coverage using the following procedure.

I. RATES

Separate reimbursement rates have been established for each of the individual appropriations for Workers' Compensation claims. These rates are based on the cost of providing Workers' Compensation benefits and all salaries and wages of employees eligible for the benefit. The rates for the 2004-2005 fiscal year are listed below. The 2004-2005 rates reflect adjustments to compensate for over or under recoveries in rates established for fiscal year 2002-03 and all subsequent rates will include a similar adjustment. The determination of which appropriation would pay an employee's Workers' Compensation benefits defines the appropriate rate to be used in the reimbursement calculation.

The rate applies to all personal service expenditures except those coded to the following accounts:

FY 2004-2005 Rates

General Fund Appropriations
Department of Children and Families 5.50%
Department of Corrections 7.97%
Department of Mental Health and Addiction Services 4.04%
Department of Mental Retardation 5.40%
Department of Public Safety 2.04%
General Government (All Others) 1.21%
Transportation Fund Appropriation
Department of Transportation and Department of Motor Vehicles 2.35%

II. REIMBURSEMENT PROCESS

Reimbursements are to be transferred to the General Fund using a Reimbursable Cost Recovery Form, CO-826. Use the Core-CT expenditure account code 50460, Worker Compensation Awards. The amount of the personal service expenditure and the rate used in the calculation of the reimbursement amount must be shown on the cost recovery document. Completed forms are to be sent to the Office of the State Comptroller, Cost Reporting Unit for processing: 55 Elm Street, Room 109, Hartford, Connecticut 06106. Forms can also be faxed to (860) 702-3699. 

Transportation Fund - Reimbursement for employees whose coverage would be paid out of the Transportation Fund Workers' Compensation appropriation follows the process described above. This includes employees of the Department of Transportation and the Department of Motor Vehicles. However, OSC will deposit reimbursements as refunds of expenditures to the Transportation Fund Workers' Compensation appropriation.

Reimbursements must be processed at least quarterly.

III. REIMBURSEMENT FROM FEDERAL PROGRAMS

All agencies with Federal Programs must negotiate with their cognizant federal agency for the recovery of Workers' Compensation costs. The cost is allowable under our approved State Wide Cost Allocation Plan. All state agencies are required to include provision for the recovery of the applicable cost in their Cost Allocation Plan or Indirect Cost Proposal.

IV. QUESTIONS

Please call the Cost Reporting Unit, Budget and Financial Analysis Division, at (860) 702-3352 if you have any questions.

NANCY WYMAN
STATE COMPTROLLER

NW:REG

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