Annual Reports of Insurance Distributions
Alaska Statute 23.30.155(m) requires that each insurer providing workers' compensation coverage in Alaska, or their adjuster, file a report annually with the Alaska Workers' Compensation Board. The annual report requirement also applies to employers who are uninsured or self-insured. The report provides information on workers' compensation activity in Alaska for the previous year, including the number of claims filed, the type of claims filed, total dollars spent on medical, total dollars spent to compensate for lost wages and death benefits, total dollars spent on rehabilitation, and total dollars spent litigating claims. The report is due on or before March 1st.
Annual reports must be filed electronically, in the manner prescribed by the Board. Failure to file the report in the time and manner prescribed by the board can result in substantial monetary penalties. Details on report filing can be found below
Together with the annual report, each insurer, adjuster, uninsured employer, or self insured employer must submit payment of their Second Injury Fund (SIF) contribution and their Workers' Compensation Fund fee. These fees fund reimbursements from the SIF and help support the Division of Workers' Compensation operations.
FILING AN ANNUAL REPORT
Each year the Division of Workers' Compensation issues a bulletin which sets out the reporting requirements, record layout and file formatting requirements for the upcoming annual report filing.
ANNUAL PENALTY ASSESSMENTS
After importing and reviewing the annual report data, Workers' Compensation will return a preliminary annual report penalty assessment. Upon receiving the preliminary report, you have 60 days to submit corrections to the original annual report filing. After that time, unless an extension has been granted, all penalties are final. Final penalty assessments may be appealed by petition to the Alaska Workers' Compensation Board. The penalty report includes
- SIF penalties for late compensation report filing, pursuant to AS 23.30.155(c)
- Waiver of 155(c) penalties pursuant to AS 23.30.155(m). Waiver of penalties is based on total late payments for reporting year / total all payments for reporting year (p. 82, Legislative Audit Report, No. 07-4601-00, October 31, 1999)
- Civil penalties for late report filing pursuant to AS 23.30.155 (m)
- Error listing and civil penalty for incomplete and inaccurate report, pursuant to AS 23.30.155(m) and 8 AAC 45.136.
WORKERS COMPENSATION FEES
Beginning March 2001, employers, insurers, and self insurers are required to pay a service fee for state administration of workers' compensation (Chapter 89 SLA 2000).
- The service fee for insurance companies is included in the annual premium tax assessment under AS 21.09.210. There will be no additional filing requirements with the Division of Workers' Compensation. The fee transfer will be processed by the Alaska Division of Insurance.
- Employers who are self insured under AS 23.30.090 must submit a service fee with their annual report. The amount of the service fee is a percentage of total payments reported on the annual report, excluding the amount of the SIF contribution. The service fee will be phased in over four years (see Bulletins).
- Employers who are uninsured must submit a service fee with their annual report. The amount of the service fee is a percentage of total payments reported on the annual report, excluding the amount of the SIF contribution. The service fee will be phased in over four years (see Bulletins for current rates).
- The Second Injury Fund (SIF) contribution is a percentage of compensation paid by the insurer during the year. Compensation includes all amounts paid for temporary total disability, temporary partial disability, permanent partial impairment, and permanent total disability. The annual rate is announced by the Board on or before December 15th of each year.
- The SIF contribution is due at the time the annual report is submitted. Do not submit SIF contributions with termination reports.
- SIF contributions are assessed against each claim, based on the year of the injury and the SIF contribution rate in effect at that time (see Bulletins for current rates).
- SIF contributions are paid on all claims, irrespective of whether SIF reimbursement is being received on the claim. Note that this is a change from prior practice.
A check payable to the Second Injury Fund must be submitted for total SIF payments listed in the annual report. A single aggregate check should be submitted rather than a separate SIF check for each claimant.