Unverified rumors relating to fund mismanagement abound at the Commission
Editor’s comment: As we have repeatedly advised, the current administration now has a number of required funds that drive Illinois business batty. They were creations of the current administrators who got them enacted or reinstated while we weren’t looking. These funds cost Illinois employers well over $20 million per year. When and if Illinois business ever returns to power, we hope to make substantial changes or eradicate some of the funds altogether.
If you go to the Commission’s website, they are listed as:
- IWCC Operations Fund—this is effectively the “workers’ comp tax” designed to fund the Commission at the sole cost of Illinois business.
- Rate Adjustment Fund—this fund provides COLA increases to total and permanent claimants along with widows and dependents. We have pointed out Illinois already has the highest such benefits in the U.S.; is it truly necessary to tack on annual increases?
- Second Injury Fund—this arcane fund provides lots of expense to Illinois employers and benefits to about 100 citizens in a state of 7-8 million.
- Self-Insurers Security Fund—this fund provides “insurance” to employees of insolvent self-insured companies.
- Injured Workers’ Benefit Fund—this is now being trumpeted as “insurance” for workers who are injured working for employers that don’t have WC insurance.
Some of these funds are described on the Commission’s website at: http://www.state.il.us/agency/iic/funds.htm.
We are told by numerous sources that fund management in either the Rate Adjustment Fund or Second Injury Fund is sadly lacking and benefits are not being paid as required by law. There may be an investigation by the Attorney General or other investigative body starting any day. Watch this space for news and further developments.
