State of California

  M E M O R A N D U M

  REFERENCE CODE:
  99-018

  DATE:
  April 12, 1999

  TO:
  Health and Safety Officers
  Personnel Officers
  Return-to-Work/Claims Coordinators

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Workers' Compensation Payments, Fiscal Year 1997-1998

  CONTACT:
  Patricia Tompkins, Workers' Compensation Manager
  (916) 324-3247, CALNET 454-3247
  FAX: (916) 322-3769
  OFFICE VISION: DPA(PatriciaThompkins)
  INTERNET: PatriciaThompkins@DPA.CA.GOV


  Enclosed is the workers' compensation payment data (Exhibit 
  A) for Fiscal Year (FY) 1997/98.  This data includes 
  payments made in the FY for all open, active claims, 
  cumulative from the year 1944.  The most significant data, 
  as compared to the previous year, are:
  
  The State's workers' compensation costs total $311,474,034 
  and equate to 3.06 percent of payroll.  This is a $19 
  million (6.9 percent) increase over last year's total 
  costs.
  
  The number of injuries per million dollars of payroll for 
  FY 1997/98 was 3.24, compared to 3.41 for FY 1996/97.  This 
  is the second year with a 5 percent decrease in this 
  category.  The number of open claims was reduced from 
  32,500 for FY 1996/97 to 28,293 for FY 1997/98, which 
  equals 4,207 fewer claims. 
  
  Costs have increased in all benefit categories.  There are 
  significant increases in compensation costs, which include 
  vocational rehabilitation, permanent disability, and 
  temporary disability benefits, as well as in the State's 
  Industrial Disability Leave and LC 4800 time programs.  
  Medical costs have also increased by over 8 million 
  dollars.  Negotiations for the new Master Agreement are in 
  process and it appears there will be an increase in the 
  service fees for the next FY.
   
  Exhibit B lists in descending payment order, the workers' 
  compensation costs for all departments that spent over $1 
  million during FY 1997/98.  These 26 departments represent 
  94.15 percent of all workers' compensation expenditures for 
  the State.
  
  
  
  Kathie Vaughn, Chief
  Benefits Division
  
  
  Attachments will be distributed via mail.