2023 Oregon Revised Statutes › Volume : 16 - Trade Practices, Labor and Employment › Chapter 656 - Workers’ Compensation › Section 656.506 - Assessments for programs; setting assessment amount; determination by director of benefit level.

(1) As used in this section:
(a) "Employee" means a subject worker as defined in ORS 656.005 (28).
(b) "Employer" means a subject employer as defined in ORS 656.005 (13).
(2) Every employer shall retain from the moneys earned by all employees an amount determined by the Director of the Department of Consumer and Business Services for each hour or part of an hour the employee is employed and pay the money retained in the manner and at such intervals as the director shall specify.
(3) In addition to all moneys retained under subsection (2) of this section, the director shall assess each employer an amount equal to that assessed pursuant to subsection (2) of this section. The assessment must be paid in such manner and at such intervals as the director may specify.
(4) The Department of Consumer and Business Services shall deposit moneys collected pursuant to subsections (2) and (3) of this section, and any accrued cash balances, into the Workers’ Benefit Fund. Subject to the limitations in subsections (2) and (3) of this section, the amount of the hourly assessments provided in subsections (2) and (3) of this section annually may be adjusted to meet the needs of the Workers’ Benefit Fund for the expenditures of the department in carrying out the department’s functions and duties pursuant to subsection (7) of this section and ORS 656.445, 656.622, 656.625, 656.628 and 656.630. Factors to be considered in making such adjustment of the assessments must include, but not be limited to, the cash balance as determined by the director and estimated expenditures and revenues of the Workers’ Benefit Fund.
(5) The Legislative Assembly intends that the department set rates for the collection of assessments pursuant to subsections (2) and (3) of this section in a manner so that at the end of the period for which the rates are effective, the balance of the Workers’ Benefit Fund is an amount of not less than 12 months of projected expenditures from the fund in regard to the department’s functions and duties under subsection (7) of this section and ORS 656.445, 656.622, 656.625, 656.628 and 656.630, in a manner that minimizes the volatility of the rates assessed. If the department determines that the balance of the fund will fall below the balance required under this subsection, the department shall devise and report to the Workers’ Compensation Management-Labor Advisory Committee a plan to increase the balance to the required amount. The department may set the assessment rate at a higher level if the department determines that a higher rate is necessary to avoid unintentional program or benefit reductions in the time period immediately following the period for which the rate is being set.
(6) Every employer required to pay the assessments referred to in this section shall make and file a report of employee hours worked and amounts due under this section upon a combined report form prescribed by the Department of Revenue. The report must be filed with the Department of Revenue:
(a) At the times and in the manner prescribed in ORS 316.168 and 316.171; or
(b) Annually as required or allowed pursuant to ORS 316.197 or 657.571.
(7) There is established a Retroactive Program for the purpose of providing increased benefits to claimants or beneficiaries eligible to receive compensation under the benefit schedules of ORS 656.204, 656.206, 656.208 and 656.210 that are lower than currently being paid for like injuries. However, benefits payable under ORS 656.210 may not be increased by the Retroactive Program for claimants whose injury occurred on or after April 1, 1974. Notwithstanding the formulas for computing benefits provided in ORS 656.204, 656.206, 656.208 and 656.210, the increased benefits payable under this subsection must be in such amount as the director considers appropriate. The director annually shall compute the amount which may be available during the succeeding year for payment of such increased benefits and determine the level of benefits to be paid during such year. If, during such year, it is determined by the director that there are insufficient funds to increase benefits to the level fixed by the director, the director may reduce the level of benefits payable under this subsection. The increase in benefits to workers is payable in the first instance by the insurer or self-insured employer subject to reimbursement from the Workers’ Benefit Fund by the director. If the insurer is a member of the Oregon Insurance Guaranty Association and becomes insolvent and the Oregon Insurance Guaranty Association assumes the insurer’s obligations to pay covered claims of subject workers, including Retroactive Program benefits, the benefits are payable in the first instance by the Oregon Insurance Guaranty Association, subject to reimbursement from the Workers’ Benefit Fund by the director. [Amended by 1955 c.323 §1; 1965 c.285 §70; 1971 c.768 §1; 1973 c.55 §1; 1974 c.41 §8; 1977 c.143 §2; 1979 c.845 §5; 1983 c.391 §1; 1985 c.739 §1; 1990 c.2 §31; 1993 c.760 §1; 1995 c.332 §63; 1995 c.527 §1; 1995 c.641 §20; 1999 c.118 §1; 2001 c.591 §1; 2001 c.974 §7; 2014 c.48 §7; 2019 c.494 §1; 2021 c.257 §4]
Note:
Section 4, chapter 71, Oregon Laws 2017, provides:
Sec. 4.
The Director of the Department of Consumer and Business Services shall adjust under ORS 656.506 (7) the amount and duration of benefits that accrue on and after the effective date of this 2017 Act [January 1, 2018] for injuries that occurred before the effective date of this 2017 Act. An insurer, or a self-insured employer, shall pay benefits that exceed the amount and duration of benefits that would have been due to a worker under the law that existed at the time of the worker’s injury and the director shall reimburse the insurer or self-insured employer from the Workers’ Benefit Fund. [2017 c.71 §4]