Guaranty Fund Assessment: New Self-Insuring Employer
Ohio Administrative Code (OAC) 4123-19-15(C)
Self-Insured Department/Employer Services
November 1, 2021
This policy details the guaranty
fund assessment (GFA) for new SI
This policy applies to new self-insuring
(SI) employers and the Self-Insured Department.
(SI Employer): An employer that has been granted the privilege of paying
compensation and benefits directly.
Insured Review Panel (SIRP): A panel of three (3) persons appointed by
the BWC administrator to provide employers with hearings on matters referred to
the panel, or as requested by the employer.
A. Pursuant to OAC 4123-19-15(C), a new SI employer is required to pay a
guaranty fund assessment (GFA) for the first three years of self-insurance.
GFA assessment shall not apply to
subsidiary entities added to the coverage of an existing self-insuring policy
after the first three years of self-insurance of the existing policy.
B. The GFA shall be calculated at 6% percent of base rate premium,
based on reported payroll for the most
policy year. The calculated rate
will apply for all three yearly assessments.
If the annual reported payroll represents less than 12 months of total payroll,
the payroll will be annualized to calculate the GFA.
1. Example: If eight (8) months payroll equals
$8,000,000 ($1,000,000 a month) then the annualized payroll = $12,000,000, thus
the GFA equals ($12,000,000 payroll x
2.00 base rate/100
x .06 = $14,400).
2. The minimum annual GFA for new self-insuring
employers is $5,000.
C. BWC invoices the GFA at the SI policy effective date and the next two (2) anniversary dates thereafter.
V. Resolution of Complaints
A. Any complaints or disputes
related to this policy must be submitted
in writing to the SI Department
via mail or email as detailed in
the Self-Insured Employer Dispute/Protest
Ohio Bureau of Workers’ Compensation
30 W. Spring St., 22nd Floor
Columbus, Ohio 43215-2256
B. If the SI employer disagrees with the SI Department’s formal
written response, the SI employer
may file a written
request to appeal the decision to the Self Insured Review Panel