Legislation signed protecting workers' comp benefits

Last Friday, Michigan Gov. Rick Snyder signed a package of bills designed to help workers receive compensation benefits. The 12-bill package is designed to help Delphi Co. reimburse employees who did not receive full and proper benefits following the company's bankruptcy filing in 2005. Delphi stopped payments in 2009 leaving 352 Michigan employees without adequate reimbursements. "These bills will help Delphi workers receive the benefits they earned and deserve," Snyder said. "Reimbursing these claims is the right thing to do in support of Delphi, their employees and for Michigan." HB 5478 and 5479, sponsored by state Rep. Joe Graves, creates the Private Employer Group Self-insurers' Security Fund (PEGSISF). The group will support employers who group together to self-insure their workers' compensation liability and will cover payments from members of the group if they are otherwise unable to pay. The bills are now Public Acts 228 and 229 of 2014. The governor signed 10 other bills supporting Delphi Co. employees: HB 5480, also sponsored by Graves, allows the Funds Administration Trustees to authorize payments on behalf of the PEGSIFS. It also establishes the methods to make a workers' compensation insurance claim. It is now PA 230. HB 5481, sponsored by Graves, provides that the PEGSISF is eligible to receive reimbursements if an injured person is only eligible for a compensation rate less than 50 percent of the state weekly wage. They may petition for a higher disability compensation following two years of continuous disability. It is now PA 231. HB 5483, sponsored by state Rep. Harvey Santana, allows the PEGSISF to assess the group self-insurers in the event of insolvency. It also allows the Workers' Compensation Act director to determine whether there are sufficient funds to secure payment of benefits and administrative expenses of the trust. It is now PA 232. HB 5484, sponsored by Santana, states that the PEGSISF will be represented by the Attorney General. It is now PA 233. HB 5485, also sponsored by Santana, provides that the PEGSISF can file for liability recoveries against the employer members of an insolvent insurer group. It is now PA 234. HB 5486, sponsored by Santana, allows group self-insurers to stop paying assessments to the Self-insurers' Security Fund (SISF). HB 5487, sponsored by state Rep. Phil Phelps, creates an assessment system to allow the SISF to address unpaid worker liability claims resulting from the Delphi Co. bankruptcy. The bill temporarily raises the assessment percentage from 3 percent to 3.5 percent providing the fund with more adequate funding to pay off remaining liability claims. It is now PA 236. HB 5488, sponsored by state Rep. Robert Kosowski, restricts liability reimbursement for all carriers who are delinquent on assessments and payment of workers' compensation benefits. It is now PA 237. HB 5489, sponsored by Brad Jacobsen, allows trustees of the SISF to authorize payments requested by a disabled employee or his or her dependent if the employee was entitled to unemployment benefits between May 18, 1999, and Oct. 7, 2009. It also requires any unspent money be returned to the general fund if the SISF has sufficient funds to cover claims. It is now PA 238. HB 5490, sponsored by state Rep. Frank Foster, ensures that any funds created under the Workers' Disability Compensation Act are protected with the same rights as funds held by an employer or provider. It is now PA 239. For additional information on legislation, visit legislature.michigan.gov. Published: Tue, Jul 01, 2014

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