U.S. DEPARTMENT OF LABOR 

EJ.tPLOYMEST STANDARDS ADMINISTRATION 

Office of Workmen's Compensation Programs WashinbtOn, D.C. 

• 

No. 3 

December 15, 1972 

NOTICE TO INSURANCE CARRIERS AND SELF-INSURED EMPLOYERS 

SUBJECT: Assessments for the Special Fund Under Amended 

Section 44 of the Longshoremen's and Harbor 

Workers' Compensation Act, as extended 

Subsection 44(c) of the.Longshoremen's and Harbor Workers' 

Compensation Act, as extended, was amended by P.l. 92-576, 

enacted October 27, 1972 to provide additional ~nts 

· into the special fund to cover increased compensation and 

death benefits and other expenses to be paid from the fund. 

A copy of subsections 44(c) and (d) is attached. Payments into the fund shall be-as follows: 

(1) $5,000 in death cases where the requirements 

set forth in subsection 44(c)(l) are met (see attachment); 

(2) Assessment of insurance carriers and selfinsured employersto cover probable future 

expenses of the fund. Assessments are to be 

-prorated in accordance with subsection 44(c)(2) 

(see attachment); and -

(3) Amounts collected as fines and penalties. 

The amended subsection 44(c)(2) provides that the probable 

expenses of the special fund will be estimated by the 

Department of Labor for calendar year 1973, and for each 

year thereafter, for payments specified in Section 44(j). After such estimate is .made each insurance carrier or selfinsured _employer will then be required to make payments into the furid to cover the expenses on a prorated assessment in the proportion that the total compensation and 

medical payments made on risks covered by this Act and its 

extensions by each carrier and self-insured bears to the 

total of such payments made by all carriers and selfinsureds under the Act during calendar year 1972. The 

formula and schedule for payment will be determined so as 

to maintain adequate reserves in the fund. 

20211 
SPECIAL FUND 

Section 44 of the Longshoremen's and Harbor Workers' Compensation Act 

relating to the special fund was amended by P.L. 92-5]6 to read as 

fol low.s: 

"(c) Payments into such ·fund shall be made as foHows: 

"(l) Whenever· the Secretary determines that there is no person entitled under this Act to compensation for the death of an employee which would otherwise be compensable under this Act, the appropriate employer shall pay $5,000 as compensation for the death of such an 

employee. 

"(2) At the beginning of.each calendar year the Secretary shall 

estimate the.probable expenses.of the fund during that calendar 

year and each carrier or self-insurer shall make payments into the 

fund on a prorated assessment by the-Secretary in the proportion that the total compensation and medical payments made on risks 

covered by this Act by each carrier and self-insurer bears to the 

total of such payments ·made _by all carriers and self-insurers under 

the Act in the prior calendar year in accordance with a formula and 

schedule to be determined from time to.time by the Secretary to 

maintain adequate reserves in the fund. 

"{3) Allamotints collected as fines and penalties under the 

provisions of this Act shall be paid into such fund. 

·· P(d)(l) For the purpose of making rules, regulations. and 

determinations under this section and for providing enforcement 

thereof. the Secretary may investigate and gather appropriate data 

from each carrier and self-insurer. For that purpose, the Secretary 

may enter and inspect such places and records (and make such transcrip- tions thereof), question such employees, and investigate such facts, 

conditions~ practices, or matters as he may·deem necessary or 

appropriate. 

"(2) Each carrier and self-insurer shall make, keep, and preserve such records, and make such reports and provide such additional 

information, as prescribed by regulation or order of the Secretary, 

as the Secretary .deems necessary or appropriate to carry out his 

responsibil iti1::s under this section. 

' "(3) For the purpose of any hearing or investigation related to 

determinations or the enforcement of the provisipns of this section, 

the provisions of section~ 9 and 10 (relating to the attendance of 

witnesses and the production of books, papers, and documents) of the 

Federal Trade Colllllission Act of September 16, 1914, as amended (U.S.C. 

title 15, sec. 49 and 50), are hereby made applicable to the 

jurisdiction, powers, and duties of the Secretary of Labor." 

Attachment to Notice No. 3 
2 

Attached is a card report form LS-513T upon which your company is to report during the month of January 1973, for each compen- sation Act listed on the form under which the company made 

payments during calendar year 1972, the following information: 

(1) Number of cases on which medical or compensation payments 

were made during 1972; 

(2) Total dollar amount of compensation payments made between January l, 1972 and December 31, 1972; and •. · 

(3) Total dollar amount of medical payments made 

between January 1, 1972 and December 31, 1972. 

The reverse of the form should be signed by an officer or· 

official of.the company duly authorized to file the report, who has examined the facts reported, and certifies that they · are true to the best of his knowledge. Printed signatures will 

not be accepted. 

This Office will communicate with you again after all reports have been received, the total amount needed for the fund has 

been estimated for 1973, and the amounts of the prorated 

assessments ascertained. Payment of the assessment by the date 

to be announced later will be a condition of any carrier's or· 

self-insured's renewal of authorization after·June 30, 1973. 

If you need further information about submitting the information 

required by this report, please address inquiries to Mr. John E. 

Stocker, Acting Deputy Director, Office of Workmen's Compensation . Programs, U.S. Department of Labor, Washington, D. C. 20211. 

Vou may also call (Area Code 202-382-1336). 

~ts4-~>~ 

HERBERT A. DOYLE, JR. 

Acting Director, Office of 

Workmen's Compensation Programs 

Attachments