House Concurrent Resolution 73

(By Delegates Kiss, Martin, Staton, Douglas, Manuel, Mezzatesta, Pino, Varner, Givens and Michael)


Requesting the Joint Committee on Government and Finance to contract a qualified independent actuary to study the effects of legislative acts amending the laws governing workers' compensation, as enacted during the years one thousand nine hundred ninety-two through one thousand nine hundred ninety-eight, inclusive, to determine the extent to which the state is maintaining the plan set forth in such acts amending the laws governing workers' compensation, and that the Joint Committee on Government and Finance, upon completion of the study, recommend possible future action which may be undertaken, if necessary, to assure that policies and procedures result in the prompt and fair compensation of persons entitled to the protection which the workers' compensation law affords.

Whereas, Workers' compensation benefits are paid to approximately seventy thousand West Virginia citizens annually because of injuries occurring in the workplace and disease resulting from their employment; and
Whereas, In many instances the benefits received from workers' compensation are the sole source of support for injured workers and their dependents during a period of disability and the sole means of obtaining medical care and hospitalization; and
Whereas, Maintaining a prompt and fair system of compensation for the loss of injured workers' services is critical to the economy and quality of life in West Virginia; and
Whereas, It is the policy of the State of West Virginia to provide a system of workers' compensation that fairly and adequately provides for the financial and medical needs of West Virginia workers who are injured on the job; and
Whereas, It is the policy of the State of West Virginia that West Virginia workers are to receive dignity, respect and honor for their contribution to the overall well being of the economy and quality of life of the state; and
Whereas, the Legislature determined that the Workers' Compensation Fund was found to lack permanent adequate funding to meet its liabilities on a sound actuarial basis; and
Whereas, In order to safeguard the economy and quality of life in West Virginia, the Legislature has passed numerous acts amending the laws governing workers' compensation in the last six years; and
Whereas, Among the recent action an act was passed in one thousand nine hundred ninety five, which consisted of a comprehensive reform plan intended to amortize the unfunded liability on the Workers' Compensation Fund over a forty year period; and
Whereas, The Legislature intended for the impact of the amortization of the liability to be equally borne by both employers and employees throughout the state; and
Whereas, To accomplish equal distribution of impact, the plan included provisions for higher contributions from employers as well as reduced benefit awards to claimants; and
Whereas, In the event that the amortization should be projected to be completed in a period of less than the forty years planned, due consideration could be given to the possibility of easing the burden on employees by restructuring the reduction of benefits to include higher awards; and
Whereas, The Legislature is concerned that the current system of workers' compensation in West Virginia may be inadequately providing fair and adequate compensation for all West Virginia workers who have been injured on the job by excessively denying claims for total disability and by insufficiently pursuing premiums owed by employers who are delinquent in paying their premiums, thus shifting an unfair amount of the burden of the amortization on the workers and on employers who are in compliance; and
Whereas, a significant number of West Virginia workers are employed in occupations that are dangerous and present a high risk of serious injury or death; and
Whereas, The Legislature remains determined to ensure that the administration of the Workers' Compensation System emphasize fair rates and the prompt collection of premiums; therefore be it
Resolved by the Legislature of West Virginia
That the Joint Committee on Government and Finance is hereby requested to conduct a study of the effects of the reform measures implemented by the Legislature from one thousand nine hundred ninety two through one thousand nine hundred ninety eight, inclusive; and, be it
Further Resolved, That the Joint Committee on Government and Finance shall contract an qualified independent actuary who will be directed to study the full impact of all changes upon the unfunded liability of the Workers' Compensation System, especially relating to whether the unfunded liability will be eliminated by the target date of forty years from the implementation of the plan, or whether the liability may be eliminated earlier than the target date and to determine as definite a time frame as possible for the elimination of the liability; and to determine whether the financial impact of the implementation of the plan is in fact equally borne by employers and by employees throughout the state, and if it is not being equally borne, what is the estimated division of the burden between the employers and employees, and that the all reports that the actuary shall make to the Joint Committee on Government and Finance shall be considered open to the public upon receipt by the Committee; and, be it
Further Resolved, That the committee shall have authorization from the Legislature to request, receive and examine all reports, documents, testimony, actuary and financial information or analysis, and any other such material as it may be deemed necessary for the independent actuary to make the determinations requested by the Legislature and for the Joint Committee on Government and Finance to accomplish the goals herein set forth; and be it
Further Resolved, That the actuary shall be directed to report to the Joint Committee on Government and Finance by January 1, 1999, on findings, conclusions and recommendations, and that the Joint Committee shall submit to the Legislature drafts of any legislation it may deem necessary to effectuate any recommendations it may make to address the findings, conclusions and recommendations of the actuary.