State of California

  M E M O R A N D U M

  REFERENCE CODE:
  99-002

  DATE:
  January 12, 1999

  TO:
  Personnel Officers
  Return-to-Work/Claims Coordinators

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Master Agreement with State Compensation Insurance Fund

  CONTACT:
  Patricia Tompkins, Manager Workers' Compensation Program
  (916) 324-3247, CALNET 467-3247
  FAX: (916) 322-3769
  OFFICE VISION: DPA(PatriciaTompkins)
  INTERNET: PatriciaTompkins@DPA.CA.GOV


  The Department of Personnel Administration (DPA) and State 
  Compensation Insurance Fund (SCIF) have agreed to a six-
  month extension to the Master Agreement.  The extension 
  became effective January 1, 1999, and will expire on June 
  30, 1999.  The extension was necessary to continue workers' 
  compensation coverage for the departments that operate 
  under the Master Agreement while allowing negotiations to 
  continue.  The extension will also allow time for the new 
  administration to review and comment on the continuing 
  negotiation process.
  
  The extension cap is $22 million dollars for the six 
  months.  The monthly cost per open disability claim will 
  increase to $109 and the monthly litigation cost per claim 
  will be $75.  These amounts may be adjusted if there is a 
  general salary increase that affects SCIF's operating 
  costs.  The terms of the Master Agreement remain the same 
  with the one exception that we have removed the clause that 
  mandated the State caseloads to no more than 15% above 
  private caseloads.
  
  As part of this extension SCIF, has agreed to cooperate 
  with DPA in obtaining a business review of their 
  performance in claims adjustment and legal services 
  provided under the Master Agreement.  This has been a 
  priority in our negotiations.  The vendor we select for the 
  business review will have specific expertise in assessing 
  the quality of workers' compensation claims adjustment 
  services.  We feel this is a critical step in improving our 
  relationship with SCIF and providing direction for 
  attaining the level of service and pricing that we are 
  striving for.  The cost of the business review will be 
  recovered on an equitable basis from the state departments 
  whose claims are adjusted under this agreement.  We 
  appreciate your support in this endeavor.  If you have any 
  questions in regard to the Master Agreement, please contact 
  Patricia Tompkins.
  
  
  
  
  Kathie Vaughn, Chief
  Benefits Division