Much of the time in the Missouri Senate this week was spent debating legislation that would change our state’s laws relating to the Second Injury Fund (SIF) and occupational disease within the Workers’ Compensation system. The SIF was created to help injured workers when a current work-related injury combines with a prior disability to create an increased combined disability.
Created by lawmakers 70 years ago, the SIF is funded by a surcharge employers pay on Workers’ Compensation insurance premiums. This surcharge rate has been periodically adjusted to cover the fund’s yearly costs. In 2005, the fund had a surplus of $25 million, and that same year, the General Assembly passed legislation that permanently capped this surcharge rate at 3 percent. However, our economic climate has seen many changes over the last several years — unemployment rates grew and workers’ compensation premiums fell, generating less revenue for the SIF. Now, this fund has more than $28.1 million in unpaid liabilities with no means to pay out these awards. Simply put, the fund is broke.
Meanwhile, there are hundreds of hard-working Missourians who have yet to get their benefits, and thousands more who haven’t even received a judgment. It’s reported that there are approximately 30,000 backlogged injured workers’ cases.
There has been much discussion on the Senate floor this week on how to fix this issue. Senate Bill 1 would establish priority for paying fund liabilities, starting with expenses relating to legal defense of the fund; permanent, then partial, total disability awards in the order in which they are settled or finally settled by the court system; medical expenses incurred prior to July 1, 2012; and the interest on unpaid awards.
The act would also institute a funding mechanism to bolster the Second Injury Fund when usual collections are inadequate by increasing the surcharge rate that finances the fund. Lawmakers are trying to come to an agreement on what percentage to cap claims. Currently, the cap is set at 3 percent. We need to raise this surcharge rate; the question is, by how much?
In addition, the act affirmatively states that occupational diseases are exclusively covered under Workers’ Compensation laws. This is a contentious issue with some lawmakers in the Legislature. One of the latest debates in the Senate included how those individuals with diseases associated with or caused by asbestos exposure, which includes malignant mesothelioma, asbestosis, and asbestos-related cancers of the lung, colon and other organs, would be compensated under the Worker’s Compensation law.
We need to be mindful of employers who pay into this fund and make sure the final plan approved by the General Assembly works in the best interest for all Missouri citizens. The majority of business owners who have stopped by my office this session have expressed their support for this bill. There are noteworthy arguments proposed by both sides of this issue. As this bill moves forward in the legislative process, I will keep you informed of its progress.
In district news, I’m proud to report that the Sikeston Public Library and Cape Girardeau Public Library are both receipients of the Summer Library Program Grant. These funds will be used to offer summer reading programs for youth in our area, among other projects. Libraries are a critical part of any community, and I’m grateful for all the hard work they do to provide outstanding services to local citizens.
Contact Me
I always appreciate hearing your comments, opinions, and concerns. Please feel free to contact me in Jefferson City at (573) 751-2459. You may write me at Wayne Wallingford; Missouri Senate; State Capitol; Jefferson City, Mo. 65101, or email at wayne.wallingford@senate.mo.gov or www.senate.mo.gov/wallingford.
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