Florida Assessments
Special Disability Trust Fund Assessment (SDTF Assessment)
The SDTF is maintained entirely by annual assessments as well as by the interest that these assessment deposits earn in the State Treasury. The net premiums written by the workers’ compensation carriers in Florida and the net premium applicable to the self-insurers in Florida are the basis for computing the amount to be assessed which is expressed as a percentage of net direct written premiums. Neither carriers nor self-insurers may deduct the cost of reinsurance. However, carriers may deduct dividends paid and refunds returned to policyholders in a given quarter. These premiums are then applied to the current applicable SDTF assessment rate to determine the carrier’s quarterly assessment.
FAQ
- What is the SDTF?
- Since the SDTF fund is barred from accepting new claims, why must carriers still pay the assessments?
- Who estimates the unfunded liability of the SDTF?
- Can I see the estimated unfunded liability report of the SDTF?
- Are the funds in the trust fund used for other purposes besides reimbursing carrier expenses?
- How often is the assessment due?
- When is the assessment due?
- What if the assessment is not paid timely?
- How do I pay the required assessment?
- How is the SDTF Assessments calculated for carriers?
- How is the SDTF Assessments calculated for self-Insurers?
- Who do I contact for questions on assessment rates or on payment of assessments?
What is the SDTF?
The SDTF was created by the Florida Legislature in 1955 to encourage employers to hire and reemploy individuals with pre-existing permanent physical disabilities. If the employee experienced a new injury subsequent to being hired and that work-related injury resulted in a greater permanent impairment, the SDTF would reimburse the employer for excess costs. The SDTF is statutorily barred from accepting any new claims for dates of accident after December 31, 1997.
Since the SDTF fund is barred from accepting new claims for dates of accident after 12/31/1997, why must carriers still pay the assessments?
Section 440.49(9), Florida Statutes requires that workers’ compensation insurers and individual self insured employers continue to be assessed until all the run-off claims (unfunded liability) are paid. This estimated liability has been substantially reduced over time and is independently estimated to be $1,087,287,182 as of June 30, 2015.
Who estimates the unfunded liability of the SDTF?
Section 440.49(9) e, Florida Statutes requires the Division to report annually on the status of the Special Disability Trust Fund. The report, as determined by an independent actuary:
- Updates the estimated undiscounted and discounted fund liability,
- The change in the total number of notices of claim on file with the fund in addition to the number of newly filed notices of claim,
- The change in the number of proofs of claim processed by the fund,
- The fee revenues refunded and revenues applied to pay down the liability of the fund,
- The average time required to reimburse accepted claims, and
- The average administrative costs per claim.
The department or administrator shall submit its report to the Governor, the President of the Senate, and the Speaker of the House of Representatives by December 1 of each year.
Can I see the estimated unfunded liability report of the SDTF?
Yes. Here is a link to the list of recent SDTF Actuarial Reports: Reports
Are the funds in the trust fund used for other purposes besides reimbursing carrier expenses?
No. Florida statute strictly prohibits the Special Disability Trust Fund moneys from being used for anything other than the stated legislated purpose of carrier reimbursement.
How often is the assessment due?
The SDTF assessment is (like the WCATF Assessments) an annual assessment that shall become due and be paid quarterly.
When is the assessment due?
Such amounts shall be paid within 30 days from the date that notice is served upon such carrier or 30 days after notification is sent, whichever is later.
What if the assessment is not paid timely?
If such amounts are not paid within the required time period, there may be assessed for each 30 days that the amount so assessed remains unpaid, a civil penalty equal to 10 percent of the amount so unpaid.
If any carrier fails to pay the amounts assessed against him or her under the provisions of this section within 60 days from the time such notice is served upon him or her, the office, upon being notified by the department, may suspend or revoke the authorization to insure compensation in accordance with the procedure in Section 440.38(3)(a), Florida Statutes.
How do I pay the required assessment?
All payment must be accompanied by an invoice obtained through the web-based START System. Your WCATF assessment must be paid at the same time as the SDTF Assessment.
Send payment using US Postal Service Mail:
Division of Workers’ Compensation
Assessment Unit
P.O. Box 7300
Tallahassee, FL 32399-7300
Send payment using Overnight Courier:
Division of Workers’ Compensation
Assessment Unit
200 E Gaines St
Tallahassee, FL 32399-4221
How are the SDTF Assessments calculated for carriers?
How are the SDTF Assessments calculated for self-Insurers?
Who do I contact for questions on assessment rates or on payment of assessments?
Mark Reichmuth
200 East Gaines Street
Tallahassee, FL 32399-4221
(850) 413-1753
Mark.Reichmuth@MyFloridaCFO.com
