By Therese Baxter, Seattle Mariners & Seattle Seahawks
President, WSIA

Here's what we covered at the January 18, 2007 Board of Directors meeting, that you should find of interest ...

Legislative Report

The 2007 Legislative Session promises to be a defensive one for the Employer Coalition, though we will continue to pursue our issues of import.  WSIA’s priorities for 2007 are: Wage Simplification, Final Settlement Agreements, and a study of the root problems with the growing pension trend.  The Department of Labor & Industries is pursuing bills on “claim suppression,” setting up a medical advisory committee, and vocational rehabilitation reform.  More can be found on the good, the bad and the ugly legislative issues at our website at www.wsiassn.org.  There is a link on the front page that will take you to the latest LegLink legislative report – posted weekly.

Approximately 10 legislators attended the Board’s lunch for legislators on January 18th.  Some 20 legislators had RSVP’d.

Department Claims Adjudicator Certification Testing Issues

The Board reviewed three aspects to the Department’s Claims Adjudicator Certification testing.  First, the Board is proud to announce that after a decade of fighting for it, the Department is FINALLY going to allow adjudicators the option to maintain their state certification through obtaining 75 Continuing Education Units over the 5 year period, instead of re-testing.  If the adjudicator wishes, they can still re-test, but this gives those certified adjudicators the flexibility in how they maintain their certification.  Adjudicators will still have to take the test for initial certification.  Second, WSIA initiated a study group the day before the December 2006 certification testing.  The study group proved successful, as at least 7 of the 10 people who passed the exam participated in the study group.  In advance of the March 2007 exam, as well as the other scheduled exam dates, WSIA is working to make the review more formal and even more thorough – potentially making this an all day study session.  This review session is for WSIA members ONLY.  Lastly, there is a series of meetings being held to evaluate the current state Claims Adjudicator Certification testing program – from the application process to the content and validity of the exam to the purpose of the exam.  Those issues will be addressed with the Department, and potential solutions offered to the most vexing problems.  Watch the WSIA website for periodic updates on our progress!

Claims Reference Checklists

As a result of the hard work of the Liaison Committee in holding the Department accountable on specific claims issues, the Department developed a number of checklists to assist claims adjudicators in making sure all relevant information is being supplied to the Department when handling closing orders, pension orders, vocational rehabilitation determinations, wage orders, fraud orders, and information regarding reopening applications.  These checklists are very helpful, and are posted at the WSIA website (linked on the front page) for our members.

SIEDRS & ORCA Updates

The Self-Insured Electronic Data Reporting System (SIEDRS) project is well underway.  Voluntary participation began January 1, 2007.  The WSIA Board STRONGLY encourages self-insured employers to get on board as soon as possible, A number of organizations have already volunteered to participate effective the January 1, 2007 implementation date for voluntary submittal of data.  It is important to note that after June 29, 2007, there will be fewer technical support staff dedicated solely to the SIEDRS project.  You can prepare your system any time, and test when you are ready.  Mandatory participation will occur July 1, 2008, so it is very important that you budget and plan ahead to be in compliance.  This is particularly important for public entity self-insured employers that must budget and plan far ahead.  To get an enrollment package, contact the Department at SIEDRS@lni.wa.gov.  Note your name, email address, telephone number, and name of the self-insured employer or third party administrator that you represent.

Regarding the ORCA project (Online Reporting and Client Accessibility), Self-Insurance Section staff will have access to these scanned reports in mid to late April, and the entire self-insured community will have access beginning in May 2007.

The Department will have a booth at the WSIA Annual Conference in Spokane on May 10-11 that will share information regarding SIEDRS and ORCA.  Check it out!

Pension Discount Rate

With a change in Directors at the Department of Labor & Industries, any change in the pension discount rate has been postponed for now.  WSIA has successfully fought off this $100 million impact for the past 7 years, as we see no justification for the change.  However, the recently conducted, legislatively mandated audit of the Department did indicate that the Department should adjust this rate to reflect actual rates of return on their investments.  We have no doubt heard the last of this issue, and WSIA will continue to fight it until the Department can legitimately explain the need for more funds to be reserved on already financed pensions.

Wage Orders

The battle continues with the Department on the issuance of wage orders.  This is a double-edged sword though, given that you fight for wage orders and many times the wage orders have the incorrect amount referenced on them.  Between the documentation issues and the lack of accuracy on many of these orders, the value of obtaining them is called into question.  However, all it takes is another bad court decision or legislative change in the law to make things worse.  We recommend that you weigh the value of the wage orders carefully, provide the information needed, and double-check the work of the Department’s adjudicators.

Heat Related Illness Rules

After last summer, a new round of rules is being considered to address concerns regarding heat related illness.  In 2006, despite increased education to employers and workers, there was another heat related death and a number of ill workers.

Insolvency Trust Fund Pensions Applied to Second Injury Fund

WSIA’s Executive Director Dave Kaplan has called into question the Department’s practice of attributing some of the pensions awarded to the claims they manage (after a self-insurer defaults on its obligations) to the Second Injury Fund.  The question is why the defaulted self-insured employer’s surety is not being used to pay these costs FIRST, before anything is socialized to the entire self-insured community.  If the pension is attributed to the Second Injury Fund, then the entire self-insured community pays this cost.  If the pension is paid by the Insolvency Trust Fund, then the surety is used up first and only the additional cost of claims associated with that individual self-insurer are socialized.  The Department has promised to look into this issue.

Updated February 2007

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