Mo. auditor confirms insolvency of Second Injury Fund
Friday, January 11, 2013 | 11:18 a.m. CST;
updated 8:19 p.m. CST, Saturday, January 12, 2013
JEFFERSON CITY — A report from the Missouri auditor confirms that a state fund for disabled workers is insolvent.
State Auditor Tom Schweich said Friday that Missouri's Second Injury Fund had barely $3 million as of the end of 2012 but had unpaid obligations of $28 million.
The fund covers workers' compensation claims for employees who have previous injuries or disabilities and then suffer a new job-related injury. Auditors and financial analysts have warned for several years that the fund was on a path toward insolvency. But lawmakers have done nothing to address it.
The fund gets its money from a surcharge on workers' compensation insurance premiums paid by businesses. Auditors trace the fund's financial woes to a 2005 law that capped surcharges at 3 percent.
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