Pennsylvania Code › Title 34 - LABOR AND INDUSTRY › Part VIII - Bureau of Workers' Compensation › Chapter 125 - WORKERS' COMPENSATION SELF-INSURANCE › Subchapter B - GROUP SELF-INSURANCE › Section 125.135 - Classification system; experience rating; contributions rates

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A fund shall adhere to the uniform
				  classification system and uniform experience rating plan filed with the
				  Commissioner of the Insurance Department by a rating organization under Article
				  VII of the act (77 P. S. §§
											1035.1-1035.22).
(b) A fund shall base its member contribution
				  rates on no less than the current effective loss costs plus the fund's approved
				  loss-cost multiplier. A fund may also reduce a member's contribution rates for
				  up to 5 years by 5% if the member establishes a workplace safety committee
				  which received certification by the Department and continues to meet
				  certification requirements under section 1002 of the act (77 P. S. §
											1038.2) and regulations thereunder.
(c) No later than 45 days prior to the
				  beginning of a fund year, a fund may request the Bureau's permission to change
				  its loss-cost multiplier for member contributions payable during that next fund
				  year. The request to change a fund's loss-cost multiplier shall be on a form
				  prescribed by the Bureau. The fund may support its loss-cost multiplier request
				  with a report prepared by an independent actuary but an actuarial report is not
				  required.
(d) If the Bureau
				  determines that the loss-cost multiplier requested under subsection (c) is
				  unreasonably low, so that it impairs the fund's ability to meet its expenses,
				  the Bureau will notify the fund that the loss-cost multiplier request is
				  denied. The notification will be sent to the fund no later than 30 days after
				  the filing of the request. Use of a loss-cost multiplier which has not been
				  approved by the Bureau shall result in the revocation of the fund's permit
				  under section 805(a) of the act (77 P. S. §
											1036.5).
(e) No later than 45 days prior to the
				  beginning of a fund year following its third year of operation, a fund may
				  request permission of the Bureau to deviate from the uniform classification
				  system, uniform experience rating plan, loss costs and discounts outlined in
				  subsections (a) and (b), including the use of retrospectively rated and
				  deductible plans. An applicant comprised of a majority of prospective members
				  who are participants in a group insurance purchase cooperative/safety group for
				  at least 3 years prior to the submission of its application or comprised of a
				  majority of prospective members who are political subdivisions approved as
				  self-insurers under section 305 of the act (77 P. S. §
											501) may also request permission of the
				  Bureau to deviate from the requirements of subsections (a) and (b).
(f) A deviation request under subsection (e)
				  shall be supported by a report prepared by an independent actuary projecting
				  the incurred loss experience of the fund forits next fund year by various
				  levels of actuarial confidence and rendering an opinion that the total
				  contributions received if the deviation is permitted will be adequate to
				  satisfy the applicant's obligations and expenses. A request for deviation from
				  the loss costs of a rating organization shall include a schedule of the loss
				  costs proposed for the fund year.
(g) If the Bureau determines that the
				  deviation requested under subsection (e) may impair the fund's ability to meet
				  its obligations, it will notify the fund that the deviation request is denied.
				  The notification will be sent to the fund no later than 30 days after the
				  filing of the request. Use of loss costs which have not been approved by the
				  Bureau will result in the revocation of the fund's permit under section 805(a)
				  of the act (77 P. S. §
											1036.5).
This section cited in 34 Pa. Code §
												125.133 (relating to
						application).