The Special Compensation Fund (SCF) assessment funds Minnesota's workers' compensation programs. Most of the assessment dollars go to funding the supplementary and second-injury benefit programs. The assessment also pays the operating expenses of the workers' compensation divisions of the Department of Labor and Industry, the Office of Administrative Hearings and the Workers' Compensation Court of Appeals.
As a result of legislation by the 2002 Minnesota Legislature, the assessment process has changed. Companies are no longer required to report semi-annually. The report is now being done on an annual basis. The report form is mailed to companies at least 45 days before the due date of April 1.
The Special Compensation Fund assessment is now directly invoiced by the Minnesota Department of Labor and Industry. The first half of the assessment is invoiced by June 30 of each year, and is due Aug. 1 of that year. The second billing is due Feb. 1 of the following year, and is mailed approximately 30 days before the due date.
The estimated state-fiscal-year 2012 funding requirement for the Special Compensation Fund was determined to be $89,600,000. The liability was divided between the insurers and self-insurers by the ratio of their 2010 indemnity payments to the total indemnity reported by both groups.
| 2010 indemnity | Ratio | Estimated liabilities | DSR pure premium | |
| Insurers | $310,102,135 | 76.23% | $68,304,226 | $767,354,846 |
| Self-insurers | $ 96,683,117 | 23.77% | $21,295,774 | |
| Total | $406,785,252 | 100.00% | $89,600,000 | $767,354,846 |
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The insurer premium surcharge rate applied for the purpose of determining the Special Compensation Fund assessment was 8.9013 percent. The rate was determined by dividing the insurer portion of the Special Compensation Fund state-fiscal-year 2012 liability ($68,304,226) by the 2010 designated statistical reporting pure premium reported by all insurers to the Minnesota Workers' Compensation Insurers Association ($767,354,846).
The imputed self-insured assessment rate was 22.0264 percent. It was determined by dividing the self-insured portion of the Special Compensation Fund state-fiscal-year 2012 liability ($21,295,774) by the total 2010 indemnity reported by the self-insured employers ($96,683,117).
The 2011 assessment will not be adjusted for actual 2011 data reported April 1, 2012. Per statute, the current assessment is to be based on the prior year's data.
If you need further information, contact John Kufus at (651) 284-5179 or dli.assessment@state.mn.us.
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