Rep Sheppard bill clarifying ownership of surplus workers comp insurance funds passes

first_img07May Rep. Sheppard bill clarifying ownership of surplus workers’ comp insurance funds passes House Legislation reflects original intent, provides guidance to courtsThe Michigan House today voted in support of a bill that ensures employers who pay into self-insured workers’ compensation funds are rightly entitled to any surplus dollars, as they are member-owned asset pools.“The Workers’ Compensation Agency already considers employers the just owners of any surplus funds, so this bill sensibly clarifies statute to reflect an equitable practice,” said bill sponsor Rep. Jason Sheppard.House Bill 4362 amends the Workers’ Disability Compensation Act of 1969 to clarify that employer members in a self-insured group possess ownership of proportional shares in the any surplus assets.“The goal of this bill is to clarify the original intent of the legislature,” Rep. Sheppard said. “These insurance funds are owned by group members and no one else, it’s that simple.”HB 4362 also requires groups to establish processes and procedures for the distribution of excess assets in case of surplus or dissolution as approved by the Workers’ Compensation Agency.The legislation will be considered further in the Senate. Categories: Sheppard Newslast_img

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