May 4, 2016

Senate reports bill to prohibit SIF fund transfers to state budget

The Senate Labor Committee this week considered and reported a bill [S.7379--Martins] that would prohibit the transfer of State Insurance Fund balances to the general fund to close State Budget deficits.

The bill’s sponsor, Sen. Jack M. Martin, R-7, points out that since its inception more than $1 billion has been diverted from the SIF to the state budget and other government purposes. The transfer of the money from the fund has prohibited the SIF from using these reserve funds to rebate policyholders and to lower premiums. S.7379 would keep the money in the fund and it would enable SIF to lower the cost of doing business in New York.

History. Since almost all New York state employers must provide workers' compensation coverage for their employees, the SIF was created in 1914 to act as an insurer of last resort for the purpose of insuring employers against liability for personal injuries or death sustained by their employees.