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.