image of people working IWCC  
link to home page
Pat Quinn, Governor
Pat Quinn, Governor

IWCC Links Skip to Content Skip to State Links

 Annual Report
 Appellate Court
 Opinions
 Assessments
 Basic Info
 Benefit Rates
 Calendars &
 Call Sheets
 Case Info
 Commission
 Decisions
 Contact
 Information
 español
 Forms
 Fraud

 Freedom of
 Information Act

 Frequently
 Asked
 Questions

 Handbook

 Injured Workers'
 Benefit Fund

 Insurance
 Jobs
 Links
 Medical Fee
 Schedule
 Meeting Notices

 News

 Occupational
 Diseases Act

 Polski

 Rate
 Adjustment Fund
 Rules
 Self-Insurance
 Small Business
 Advisory

 Surchange
 Settlement
 Workers'
 Compensation
 Act
Inspector General

 Assessments  

TABLE OF CONTENTS

IWCC Operations Fund 
Rate Adjustment Fund 
Second Injury Fund 
Self-Insurers Security Fund




IWCC Operations Fund

Illinois Compiled Statutes, Ch. 820, Para. 305, Sec. 4d; Ch. 215, Para. 5, Sec. 416

Purpose

The IWCC Operations Fund was created in 2003 to pay for the administrative costs of the agency. Illinois became the 46th state in the country that funds the w.c. agency's administrative expenses through an assessment of some kind.

Assessment

Insurance carriers:  Each year, the Illinois Department of Insurance (IDOI) collects a 1.01% surcharge on workers’ compensation insurance premiums from insurance carriers.  It sends out an assessment letter each July.  Payment is due 30 days after the assessment is sent.

Self-insured employers:  Each year, the IWCC collects an assessment of .0075% of payroll from self-insured employers. 

Penalty for nonpayment

If the employer fails to pay the fee on time, it shall pay the greater of $1,000 or 5% of the deficiency for each month or part of a month that the deficiency remains unpaid. The Commission does not have the ability to waive part or all of the penalty. Please remit payment as soon as possible to stop the accrual of penalties.

Contacts

For insurance carriers' questions: Doug Hollis, IL Dept. of Insurance (217/782-0055)

For self-insurers' questions about payment method/history:  Robert Kern, IWCC Fiscal Office (312/814-1647)

For self-insurers' questions on the time period of self-insured status, payroll amount listed on the bill, or to update contact information: Maria Sarli-Dehlin, IWCC Self-Insurance Office (312/814-6065) or Jean Cannon, IWCC Self-Insurance Office (217/782-6330)


Rate Adjustment Fund

Illinois Compiled Statutes, Chapter 820, Paragraph 305, Sections 7-8

Purpose

The Rate Adjustment Fund was created in 1975 to pay cost-of-living increases to individuals who are either permanently and totally disabled or the survivors of fatally injured workers. Individuals who receive awards for permanent and total disability or death benefits are eligible. Benefits are paid each month, beginning on July 15 of the second year after the award is entered by the Commission. Recipients are given an amount equal to the percentage increase in the statewide average weekly wage, as calculated by the Department of Employment Security.

Assessment

Twice each year, self-insured employers, insurance companies, and governmental units pay 1.25% of all compensation payments, excluding hospital, surgical, or rehabilitation payments, made in the six-month period preceding the payment date.  The Rate Adjustment and Second Injury assessment form and cover letter are sent each February and August. Payment is due each March 15 and September 15.  (The current assessment is due March 17th.)  All payments should be rounded to the nearest cent.

Payment of the assessment is required until official approval to cease payment is given as follows: 

Insurance carriers:  If an insurance company terminates a workers' compensation policy, the company should notify Doug Hollis, IDOI, at 217/782-0055.  The IDOI will provide a letter confirming the termination of the workers' compensation insurance policy to the company and the IWCC. After the IWCC receives the confirmation letter, assessments will cease.  We cannot stop assessing a company until we receive the IDOI letter.

Self-insured employers:   If a self-insured company terminated its self-insurance privilege, ceased doing business in Illinois, filed for reorganization, or was acquired by or merged into a conventionally insured company, it will continue to be assessed until all workers' compensation claims have been resolved and the statute of limitations has expired. The company is required to return the assessment form to the Commission until the Commission has confirmed that all workers' compensation claims have been resolved.  If you believe your self-insured company should no longer be assessed, please contact Maria Sarli-Dehlin, IWCC Self-Insurance Division, at 312/814-6065.

By law, every February 1st and August 1st, the Commission examines the fund balance. If the fund balance is above $4 million, then the assessment is cut in half. If the balance is above $5 million, then the assessment will not be made. If the balance falls below $3 million, the full assessment will be reinstated.

Penalty for nonpayment

If an employer knowingly and willfully fails to make timely payment, the Commission shall impose a penalty equal to 20% of the amount due or $2,500, whichever is greater.

Contacts

Robert Kern, IWCC Fiscal Office (312/814-1647)


Second Injury Fund

Illinois Compiled Statutes, Chapter 820, Paragraph 305, Sections 7-8

Purpose

First established in the 1950s, the Second Injury Fund provides an incentive to employers to hire disabled workers. Illinois' SIF is more narrowly constructed than most other states. If a worker who had previously incurred the complete loss of a member or the use of a member (one hand, arm, foot, leg, or eye) is injured on the job and suffers the complete loss of another member so that he or she is permanently and totally disabled (PTD), the employer is liable only for the injury due to the second accident. The fund pays the amount necessary to provide the worker with a PTD benefit.

Assessment

Insurers and self-insured employers pay assessments up to 1/8 of 1% of compensation payments, excluding hospital, surgical, or rehabilitation payments, made in the six-month period preceding the payment date.  The Rate Adjustment and Second Injury assessment form and cover letter are sent each February and August. Payment is due each March 15 and September 15.

By law, every January 1st and July 1st, the Commission examines the fund balance. If the fund balance is $500,000, then the assessment is cut in half. If the balance is $600,000, then the assessment will not be made. If the balance falls to $400,000, the half-assessment will be reinstated; if it drops to $300,000, the full assessment will be reinstated.

Penalty for nonpayment

If an employer knowingly and willfully fails to make timely payment, the Commission shall impose a penalty equal to 20% of the amount due or $2,500, whichever is greater.

Contacts

Robert Kern, IWCC Fiscal Office (312/814-1647)


Self-Insurers Security Fund

Illinois Compiled Statutes, Chapter 820, Paragraph 305, Sections 4a-5, 4a-7

Purpose

The Self-Insurers Security Fund was created in 1986 to pay benefits to employees of private self-insurers that became insolvent after 1986.

Assessment

Self-insured employers pay assessments based on their compensation payments, up to a maximum of 1.2% of compensation payments, excluding hospital, surgical, or rehabilitation payments, made during the preceding year.

Assessments are sent out at the direction of the Self-Insurers Advisory Board.  Payment is due within 30 days.

Penalty for nonpayment

Penalties are handled through the circuit court. 

Contacts

Maria Sarli-Dehlin, IWCC Self-Insurance Division (312/814-6065)

 

 
Copyright 2002 State of Illinois   Privacy Statement   Contact Us