State of California M E M O R A N D U M REFERENCE CODE: PML 96-007 DATE: March 15, 1996 TO: Personnel Officers FROM: Department of Personnel Administration Benefits and Training Division SUBJECT: Workers' Compensation Cost Data, Fiscal 1994-1995 CONTACT: Jamie Meyers, Manager, Workers' Compensation & Safety Program (916) 327-4024, Calnet 467-4024 Office Vision: DPA (JLMEYERS) INTERNET: JLMEYERS@SMTP.DPA.CA.GOV Enclosed is the workers' compensation cost data (Exhibit A) for all of State Government for the period July 1, 1994 through June 30, 1995. The most significant findings are: *The State's workers' compensation costs total $255.3 million and represent 2.72 percent of payroll. This is a $3.3 million decrease in the total costs and a 10 percent decrease in the costs as a percentage of payroll. This is the second year that we have had a decrease in total costs and costs as a percentage of payroll. *Wage continuation program payments (Industrial Disability Leave and Labor Code sections 4800 and 4800.5)decrease by $3.25 million. This is the third consecutive year of decreased in the amount paid for this benefit. Exhibit B lists in descending payment order the costs of all departments who spent over $1 million during FY 1994-95. These 26 departments account for 96 percent of all workers' compensation expenditures. Continued reductions in workers' compensation costs are due to both the legislative reforms and the increased efforts of State departments to reduce costs and return employees back to work. Patricia Pavone, Chief Benefits and Training Division Attachments will be mailed with hard copy of PML.