The Workers' Benefit Fund
Oregon workers' compensation administration and programs are funded
by insurer, employer, and worker assessments. The Workers'
Benefit Fund is one of two funds to which monies from the assessments
are deposited. The other fund is the Consumer
and Business Services Fund.
Workers' Benefit Fund covers the following continuing expenditures:
with Disabilities Program (ORS 656.628)
Assistance Program (ORS 656.622)
Claims Program (ORS 656.625)
Program (ORS 656.506)
Employer Payments (ORS 656.054 & .735)
Disability Benefit (ORS 656.210)
Payments (for pre-1986 Vocational Assistance Costs)
(Oregon Laws 1985, Chapter 600, Section 15)
of the Oregon Institute of Occupational Health Sciences
of the Oregon Health Sciences University (ORS 656.630)
due workers who have not received payment from an insurer
in default (ORS 656.445)
of the Bureau of Labor and Industries for activities related
to investigation of alleged injured worker discrimination
retain from the monies earned by all subject employees an amount
determined by the director for each hour or part of an hour the
employee works. The director also assesses each employer an amount
equal to that retained from the employees' earnings (ORS 656.506).
The combined Workers' Benefit Fund assessment rate for employers
and employees is 2.8 cents per hour for calendar year 2012. An amount
equal to one sixteenth of one cent of the money deductible from
workers' wages is transferred from the Consumer and Business Services
Fund for half of the funding for the Oregon Institute of Occupational
Health Sciences. Quarterly transfers are also made from the Consumer
and Business Services Fund for noncomplying employer payments and
rehabilitation payments. In addition, recoveries, fines, and penalties
related to the above programs and payments are returned to this
report and pay the Workers' Benefit Fund assessment quarterly along with their state
withholding taxes, unemployment insurance tax, and certain transit taxes. As part of
the Combined Payroll Tax Reporting System, the Department of Revenue banks employers'
Workers' Benefit Fund assessment payments and the Employment Department captures the
report data. The Department of Consumer and Business Services, Fiscal and Business Services,
manages employers' Workers' Benefit Fund assessment accounts and performs account resolution
activities (e.g., transfers, refunds, billings, and collections).
Reference: ORS 656.605 & OAR 436.070
Workers with Disabilities
Program (ORS 656.628)
The Workers with Disabilities Program encouraged the employment of disabled workers
whether their impairment was due to congenital causes, injury, or disease. It allowed
for reimbursement for subsequent injuries for the percent of claim costs that could
be attributed to the disability. The legislature's special session in 1990 ended the
identification of new claims for eligibility under the Workers with Disabilities Program,
when incentives under the Reemployment Assistance Program were increased. Although
no new claims against the reserve have been accepted since May 1, 1990, reimbursement
for claim cost continues for those claims previously found eligible.
Reemployment Assistance Program (ORS 656.622)
The Reemployment Assistance Program, provides employers incentives to rehire or hire
injured workers. Employment is encouraged through premium exemption and providing funds
for wage subsidies, worksite modifications, certain purchases, and claim cost reimbursement
for eligible employers and workers. The program also offers reimbursement to insurers
and self-insured employers for certain related administrative costs.
Reopened Claims Program (ORS 656.625)
The Reopened Claims Program provides reimbursement to insurers, self-insured employers,
and self-insured employer groups for costs arising from specific claims costs associated
with Boards Own Motion (BOM) orders or voluntary re-openings by insurers. These orders
are done under the authority of ORS 656.278.
Retroactive Program (ORS 656.506)
The Retroactive Program provides increased benefits to workers or
their beneficiaries for benefit levels that are lower than what
is currently being paid for like injuries. The increased benefits
are received mainly by beneficiaries of workers who suffered fatal
injuries and by workers who have been determined to have a permanent
Noncomplying Employer Payments (ORS 656.054 & .735)
Noncomplying employer payments are for claims costs of injured workers who were employed
by an employer that did not have workers' compensation insurance coverage at the time
of the worker's injury. These payments previously came out of the Consumer and Business
Services Fund, but this was changed in 1995 legislation. Sedgwick Claims Management
Services Inc. processes these claims as the department's claim processing agent, and
is reimbursed by the department. The department is responsible for collecting all claims
costs from the noncomplying employer. The Department of Revenue, Department of Justice,
and contracted private vendors assist the Department of Consumer & Business Services
in the recovery of claims costs not readily recoverable.
Supplemental Disability Benefit (ORS 656.210)
The Supplemental Disability Benefit was established to provide a more accurate replacement
of lost wages for workers with multiple jobs for injuries occurring on or after January
1, 2002. The Workers' Benefit Fund will pay this Supplemental Disability Benefit.
If you have questions about this webpage, please contact
Lori Graham, 503-947-7502.