Starting this month, State Compensation Insurance Fund employees will be furloughed two days a month, but thanks to efforts by SCIF’s management, the sting will not be as painful for its customers or employees as originally thought.  Despite being told it’s included in the furlough, SCIF management is still doing everything possible. In the meantime, the Department of Personnel Administration says SCIF was able to work out an arrangement that would keep it from interfering with its mission.

“SCIF will be participating in the furlough but in a self directed fashion, so it can remain open during normal business hours,” Lynelle Jolley, spokeswoman for the Department of Personnel Administration, tells Workers’ Comp Executive.

In addition to its function as the workers’ comp carrier of last resort, SCIF adjusts the workers’ comp claims for all the state agencies.

Jolley says like other state agencies, SCIF had the choice of either closing on the first and third Friday of each month or doing a self-directed furlough. This will allow SCIF to have its employees take their two furlough days on a staggered basis, so it can stay open during regular business hours.  It will be up to SCIF how it chooses to schedule furlough days.

“The employees pay will adjusted to reflect their two days,” Jolley says.

Starting this Friday the “vast majority” of state agencies will be closed on those two days, according to the governor’s office. Governor Schwarzenegger’s executive order applies to all state agencies regardless of funding source.  SCIF is not included in the general fund, but is funded through employer premium. 

Jennifer Vargen, spokeswoman for SCIF says DPA is well aware of SCIF’s unique circumstance. “We’ve been telling DPA, and they’ve understood that we must stay open to serve our customers,” she says. “I can confirm that if State Fund becomes subject to a furlough, we will remain open during normal business hours.”

Sources tell Workers’ Comp Executive that SCIF’s management including President Janet Frank had been working diligently with DPA to determine SCIF’s status and perhaps even get an exemption to the furlough. Employees were kept in the loop during the process. SCIF claims adjusters expressed concerns that if SCIF was shuttered twice a month, the backlog could easily overwhelm adjusters on the days they did work.

SCIF has roughly 7,800 employees.

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