Keenan Briefings

Briefings

OSIP Requires Self-Insured Employers to File New Forms for Workers’ Compensation Programs

July 23, 2020

On July 7, 2020, the Department of Industrial Relations’ Office of Self-Inured Plans (OSIP) announced the finalization and effective date of its regulations that require public self-insured employers to submit reports with information from which OSIP will evaluate the administrative cost, workers’ compensation expenditures, solvency and performance of public self-insured employer workers’ compensation programs. Beginning with the 2019-2020 annual report, which is due October 1, 2020, OSIP will require self-insured public entities to file annual reports providing demographic data along with claims and financial data about their workers’ compensation programs through the new forms described below.

Self-Insurer’s Profile and Financial Summary Report (Form P-1)

Form P-1 is for employers with stand-alone workers’ compensation programs. It requires reporting of annual operating expenditures, employer demographics, and financial information. Most of this information will come from the employer’s human resources records as well as its certified, independently audited financial statement. In addition to traditional self-insured employers, PIPS members are permissibly self-insured, therefore this form will be required from all individual members of PIPS.

Joint Powers Authority Self-Insurer’s Profile and Financial Summary Report (Form J-1)

Form J-1 is for workers’ compensation programs administered through joint powers authorities (JPAs). It requires similar data regarding workers compensation JPAs, including information about the membership of the JPA and the demographics of its member employers. This form will be required from all JPAs that are members of PIPS.

Aggregate Claims Information (Form AR-2 Addendum)

The regulations also modify the existing annual reports filed by public employers (on Form AR-2) by requiring that they include aggregate claim data covering the most recent fiscal year, each of five preceding fiscal years, and all earlier years with reported claims. The Form AR-2 will require employers to report the number of claims, the amount of disability benefits paid, the amount of medical costs paid, the legal and loss adjustment expenses paid, as well as the estimated future liabilities. This information will be provided by Keenan.

These regulations are part of a multi-year process on the part of OSIP, public employers and other stakeholders. Throughout this process, Keenan provided OSIP with detailed feedback, participating in pre-regulatory and regulatory meetings, providing detailed written comments and assisting several clients to participate in an OSIP reporting pilot project. As such, Keenan has spent months preparing to help its self-insured employer and self-insured JPA clients to comply with these new reporting requirements.

For the 2019-2020 annual report due on October 1, 2020 and in the years that follow, Keenan will assist its self-insured public agency clients by:

  • Completing the new Form AR-2 Addendum.
  • For self-insured public agencies and members of PIPS, by assisting with the identification of the various sources of information clients can use to complete forms P-1 and J-1. Budgets, Treasurer Reports and Audited Financial Reports will be key sources of this information.

Public agencies seeking more information regarding the new reporting obligations should contact their Keenan Risk Management Analyst. They can also check out the resources found at the links below.

Keenan Briefing on OSIP reporting obligations:

https://www.keenan.com/Resources/Briefings/Briefings-Detail/new-reporting-requirements-for-self-insured-employer-workers-compensation-programs

DIR announcement of effective date of new regulations:

https://www.dir.ca.gov/DIRNews/2020/2020-59.html


Keenan & Associates is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Clients are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the clients’ business activities.