MEMORANDUM NO. 98-28
July 1, 1998
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Fiscal and Administrative Officers, Business Managers, and Payroll and Personnel Officers|
|Subject:||Workers' Compensation Cost Recovery|
Effective July 1, 1996 all State agencies charging personal service expenditures to funds other than General Fund Budgeted Appropriations were required to reimburse the General Fund for the cost of Workers' Compensation coverage using the following procedure.
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 1998-99 fiscal year are listed below. The 1998-99 rates reflect adjustments to compensate for over/under recoveries in rates established for fiscal year 1996-97 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 expenditure objects 01-050 Fees; 01-130 Patient or Inmate Workers; 01-220 Accumulated Sick Leave at Death or Disability; 01-090, 01-390, 01-490, 01-590, 01-690, or 01-790 Accumulated Sick Leave at Retirement; 01-920 Interest Penalty; and 01-950 Buy Back Option.
|Department of Children and Families||1.00%|
|Department of Corrections||1.54%|
|Department of Mental Health and Addiction Services||0.42%|
|Department of Mental Retardation||2.08%|
|Department of Public Safety||1.40%|
|Department of Transportation||0.93%|
|General Government (All Others)||0.47%|
Reimbursements are to be transferred to the General Fund using either a Transfer Invoice, CO-608, or a Reimbursable Cost Recovery Form, CO-826. Use Expenditure Object 05-320, Employee Fringe Benefit Costs. The amount of the personal service expenditure and the rate used in the calculation of the reimbursement amount must be shown on the transfer document. Completed forms are to be sent to the Office of the Comptroller, Management Services for processing. Please forward a copy of all Worker's Compensation cost recovery transfer documents to the Cost Reporting Unit, Budget and Financial Reporting Division.
Reimbursements must be processed at least quarterly.
Reimbursement for employees whose coverage would be paid out of the Transportation Fund's Workers' Compensation appropriation is to be deposited into that appropriation.
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.
Please call the Cost Reporting Unit, Budget and Financial Reporting Division, at (860) 702-3364 if you have any questions.
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