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 3.3 cents per hour for calendar year 2013.
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 fund.
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 Re-employment 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.
Re-employment Assistance Program (ORS 656.622)
The Re-employment 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
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 Jan. 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.