SIF to assess $60 million for five years
Under a plan approved by the Budget and Control Board on May 9, the unfunded liabilities of the Second Injury Fund, slated to close June 30, would be paid off by assessments of $60 million each for the next five years.
The board would commission an actuarial valuation after the first year and subsequently to ensure it is collecting enough funds. Earlier in the year an actuarial study by KPMG calculated as of June 30, 2013 the Fund would have unfunded liabilities of $346.3 million and cash balance of nearly $91.7 million.
The plan adopted by the Budget and Control Board mirrors the consensus among a panel invited in February to advise the Fund on paying off its liabilities. The panel consisted of representatives from the insurance industry, the South Carolina Self-Insurers Association, the State Accident Fund, the SC Department of Insurance, and the SC Workers’ Compensation Commission.
Legislation passed in 2007 stipulates the Second Injury Fund will be closed as of July 1, 2013, when all remaining obligations and residual activity will be transferred to the Budget and Control Board for an orderly winding down. The self-insurers association was prominent among those agitating for the Fund’s closure. But opposition to the Fund was widespread in the business community and reached a high point in 2005 when the Fund levied assessments totaling $253.3 million.
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