Bismarck Tribune - Bismarck News - WSI surplus must include all funds

WSI surplus must include all funds

Nov 19, 2008 - 04:05:25 CST

By BRIAN DUGGAN
Bismarck Tribune

Attorney General Wayne Stenehjem agrees that Workforce Safety and Insurance cannot cherry-pick which funds to include when calculating its surplus, according to an opinion issued Tuesday.

A 2007 financial audit of WSI found that its surplus was nearly 164 percent of the agency's reserves, or about $467 million. It cannot go above 140 percent by state law.

WSI contended that it could exclude some grants and other funds from its surplus to bring it below the 140 percent limit, but Stenehjem's opinion aligns with State Auditor Bob Peterson's argument that the agency must include all its funds in its calculation.

But since September, that surplus has dropped below that 140 percent limit, even with all of WSI's assets added to its surplus, because of the slumping economy, said Bruce Furness, interim WSI director.

Stenehjem said he will take no immediate action in light of his opinion, adding lawmakers will be better equipped to clarify WSI's surplus law instead of forcing the agency to sell off its assets in light of the sputtering economy.

The Industry, Business and Labor interim committee has recommended a bill that would extend the maximum surplus for WSI from 140 percent to 150 percent of its reserves.

Furness called Stenehjem's opinion a "reasonable solution to the problem," and said he expects the Legislature to find a solution to the surplus law next year.

"I think it will be resolved, I don't know exactly how," he said.

As for the dispute over whether certain funds be counted in the agency's surplus, Furness said WSI will follow the law and comply with Stenehjem's opinion.

"We felt we were doing what was originally intended," Furness said of the state law. "Obviously the auditor didn't and the attorney general agreed with him."

(Reach reporter Brian Duggan at 223-8482 or brian.duggan@;bismarcktribune.com.)

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Comments

Hey Interested. wrote on Nov 19, 2008 8:35 PM:

" You must know some board members. Could you tell me if they ever get tired of management making them look bad? I mean they must be embarrassed, and it seems to me to be because they trust management too much. Pretty much take what ever management says at face value. Wait a minute, I guess that's not their job. They should be embarrassed.

Hopefully with Governor Hoeven we will have a bit more accountability. Can't be any less. "

Interested wrote on Nov 19, 2008 6:52 PM:

" Hey Victor-somewhere else you posted you had heard the discounts were going to be discontinued "next" year. Since it is going to be well into 2009 before the 77 million return of premium filters through every eligible employers account, how does that square with your rumor source ? I am sure you remember that no check is issued, only a credit on the employers next annual premium payment. If you start counting today, it would be November 2009 before some employer sees the refund. Care to comment ?

For Living it- The only employers not eligble for the premium refund are those paying the minumum premium. Unless the legislators change the rules-will be the same when Hoeven apponts the CEO- as of now, the only power he has.

Wonder what the surplus will be when the latest stock market gyrations are recognized in the WSI holdings by the State Investment Board ? Anyone want to bet it will still be above 140% ? I won't. Sounds like the Legislature is going provide some more precision to which and how many assets should be counted. After the next session, at least this issue should be resolved. "

Living It wrote on Nov 19, 2008 1:29 PM:

" Once again it's peaches an cream inside the bullet proof building-i do like how wsi gives 77mil to some employers but not all-i also wonder if some of these same employers received safety grants-but the seriously injured have to do 5 job searches a day for telemarketing jobs-healthy people only have to do two a week and thats any job they want-this is all going right into hoevens lap-enjoy- "

Victor wrote on Nov 19, 2008 12:50 PM:

" Once again WSI breaks the law and suffers no consequences. Why are people so afraid of WSI? Why isn't WSI held accountable? "

Watching WSI wrote on Nov 19, 2008 11:11 AM:

" Here is just another example of WSI practices they try to sell off as legal. The one good thing that came out of the election was that the WSI messure passed. This is the first step to making WSI accountable for its actions. This measure also protects the lower level employees by making sure the big wigs don't get salary increases that are out of this world while the peons obtain small raises. "

Just have to say wrote on Nov 19, 2008 8:55 AM:

" Now if WSI is doing this to hide assets, doesnt it make you wonder how much they have tried to hide about how they really treat injured workers. They have besides the normal attorneys five attorneys from the AG, and they still cannot be honest. The AG has to make the call, and say no youre doing something against the law. This is just a great example of how they do things their own way to hide the truth. Do NOT let those at WSI fool you they know they are doing wrong; they just like to play it off as they did not know the law.

People really need to start questioning what else they are doing illegally against injured workers to create such a surplus. Come on people of this state start demanding more integrity from WSI. "

Can we trust them wrote on Nov 19, 2008 7:12 AM:

" The AP says WSI still has illegally high surplus, WSI tells the Tribune they are below 140%...

Does anyone really know? How can we believe anything coming out of WSI? "

Truth be told wrote on Nov 19, 2008 6:27 AM:

" Who is minding the store at WSI? They always seem to think they are running things according to the law, but when the facts comes out they are just twisting and manipulating the law to try to fit whatever it is they are doing. Just like they thought it was perfectly legal to pull drivers license photos of employees and go show them around town to find out who sent a legal email. Whoever Hoeven appoints to run the place will have his hands full in admonishing a number of obviously incompetent people sitting on high perches at WSI. Otherwise, it will just be more of the same. "

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