Work comp: Results of Special Compensation Fund assessment

Since 2021, the Workers' Compensation Report of Benefits Paid (or SCF assessment) is filed via Work Comp Campus.

Instructions

Insurers and self-insured employers assessment resources

If you have questions, send a message to dli.assessment@state.mn.us.

Introduction 

The Special Compensation Fund (SCF) assessment funds Minnesota's workers' compensation programs. Most of the assessment dollars go to funding the supplementary, second-injury, uninsured and occupational disease benefit programs. The assessment also funds the operating expenses of the workers' compensation divisions of the Department of Labor and Industry (DLI), the Court of Administrative Hearings and the Workers' Compensation Court of Appeals; the state portion of Minnesota OSHA Compliance; rate regulation at the Department of Commerce; and fraud prevention at the Bureau of Criminal Apprehension.

The SCF assessment is directly invoiced by DLI. The first half of the assessment is due Aug. 1 every year and the second half is due the following Feb. 1. Invoices are mailed approximately 30 days before the due date. Assessment amounts of $1,000 or less are invoiced with first-half invoices only.

In fiscal year 2026, the SCF experienced an unprecedented year, with supplementary benefit and second injury fund reimbursements to insurers and self‑insured employers exceeding $40 million. Consequently, a modest increase to the assessment rate will be implemented; DLI’s 2026 SCF assessment is set at $68.9 million. 

The liability was divided between the insurers and self-insurers by the ratio of their 2025 indemnity payments to the total indemnity reported by both groups.

Insurer premium surcharge rate

The insurer premium surcharge rate applied for the purpose of determining the SCF assessment is 5.09%. The rate was determined by dividing the insurer portion of the SCF state-fiscal-year 2027 liability ($52,729,496) by the 2025 designated statistical reporting pure premium reported by all insurers ($1,036,350,811).

The amount each insurer is assessed is determined by multiplying 5.09% by the designated statistical reporting (DSR) pure premium for calendar-year 2025. The total amount assessed is divided into two invoices, the first due Aug. 1, 2026, and the second due Feb. 1, 2027 (unless the total amount due is $1,000 or less; then the entire amount is due Aug. 1, 2026).

The insurer portion of the 2026 assessment will be adjusted for actual 2025 data reported by the Minnesota Workers' Compensation Insurers Association. As a result of 2014 amendments to Minnesota Statutes 176.129, subdivision 2a, the current assessment is considered to be an estimate based on the prior year's data. The reconciliation and final determination (true-up) for insurers will be completed by December 2026. See 2014 Minnesota Laws Chapter 182.

Self-insured assessment rate

The self-insured assessment rate is 13.29%. It was determined by dividing the self-insured portion of the SCF state-fiscal-year 2027 liability ($16,170,504) by the total 2025 indemnity reported by the self-insured employers ($121,698,340).

The amount each self-insurer is assessed is determined by multiplying 13.29% by the indemnities self-reported to DLI for calendar year 2025. The total amount assessed is divided into two invoices, the first due Aug. 1, 2026, and the second due Feb. 1, 2027 (unless the total amount due is $1,000 or less; then the entire amount is due Aug. 1, 2026).

Further information

If you need further information, send a message to dli.assessment@state.mn.us.