Dec 8, 2017
2018 WC overall rate level decreases 5.1 percent
The New Jersey Compensation Rating and Inspection Bureau received approval from the DOBI for a rate revision of -5.1 percent to become effective Jan. 1, 2018, applicable to new and renewal policies. The NJCRIB distributed Circular Letter No. 1931 detailing this rate revision, along with other changes presented in Manual Amendment Bulletins No. 479 and No. 480.
Rate level. The cumulative effect of all filed rating element changes results in a final collectible premium level reduction of 5.1 percent from the 2017 level. However, most individual classification rates will change based on the latest data reported in accordance with the Statistical Plan. The classification rates are published in Circular Letter No. 1931.
The elements included in the cumulative overall rate level are upward adjustments of 0.3 percent for benefit changes and 3.6 percent for loss adjustment expense, the security fund and bureau expense. Countering these is a downward adjustment of 9.1 percent for loss experience. Having no impact, the trend factor is 0 percent.
There is no change in the $0.03 per unit of exposure Foreign Terrorism Risk Premium Charge and the $0.01 per unit of exposure Domestic Terrorism, Earthquakes and Catastrophic Industrial Accidents Premium Charge.
Classification relativities. The year 2018 begins with a total of 564 classifications, including maritime and federal employments. Eight of these do not carry a rate assignment and another eight of the rated classifications are left unchanged. Of those classifications remaining, 119 undergo increases and 429 undergo decreases. There is no change in rates for private estate or residence employees.
Policy surcharges. There is an upward adjustment of the Second Injury Fund surcharge from 5 percent to 5.15 percent and the Uninsured Employers Fund surcharge increases from 0.08 percent to 0.12 percent.
Expense constant. For commercial classifications, the expense constant remains at $160, but increases from $80 to $160 for a residence employee policy.
Minimum premium. The minimum premium multiplier remains at 170, but the maximum premium increases from $900 to $950.
Maximum/minimum payroll. The maximum weekly payroll to be used for active executive officers, individual proprietors, partners and LLC members changes from $2,500 to $2,570, and the minimum weekly payroll changes from $630 to $640. Also, the minimum yearly payroll for a member of a board of education changes from $6,550 to $6,600 and the minimum for other appointed or elected officers changes from $1,310 to $1,330.
Benefits. The maximum weekly disability benefit is increased from $896 to $903 and the minimum benefit is increased from $239 to $241. In the case of permanent partial disabilities, the range of maximum benefit will be from $241 to $903, with no change in the minimum weekly benefit of $35.
PPAP factor. The Plan Premium Adjustment Program minimum factor is applied to standard premium in order to reflect the risks inherent in the residual market. This factor remains at 20 percent.
Schedule Rating Plan. The schedule rating credit and debit maximum remains at 25 percent.
Forms. The New Jersey Premium Discount endorsement-Schedule Y (WC 29 04 11 D) is replaced with the (WC 29 04 11 E) endorsement to reflect the new premium discount schedule. Also, the New Jersey Premium Discount endorsement-Schedule X (WC 29 04 12 A) is replaced with (WC 29 04 12 B) endorsement.
Classifications. Payroll amounts have been revised in the footnotes of pertinent class codes.
Other changes. Included with the NJCRIB filing are changes to experience-rating factors/tables and retrospective rating values.