The State Compensation Insurance Fund’s board of directors is authorizing a mid-year 15% dividend for 2019 workers’ comp policies that incepted or renewed between Jan. 1 and August 19, 2019. The dividend equates to a $105 million giveback overall or an average of $1,400 per insured.
State Fund officials say the board will consider dividends for the rest of the 2019 policy year at its February 2020 board meeting, but made clear that there is no guarantee that any additional dividends will be authorized. SCIF last issued a 2.6% dividend for its 2014 policy year that equated to a $37 million return.
“We are excited. Our investment income is very strong this year and the truth is we’re in a positive financial position that it allows us to return this money to policyholders and we wanted to let them know as quickly as possible,” says Jennifer Vargen, State Fund’s executive vice president of public affairs. “It allows businesses to understand their workers’ comp costs and to plan accordingly.”
Dividend payments will be made during the second half of 2020.