Each year in August the state releases new employer rates for groups in the state fund.
Here is some helpful information on this topic and as always, please feel free to respond back with questions.
Why does this change occur in the middle of the year and not 1/1?
The state’s fiscal year runs July 1- June 30.
How are employers notified of the new rates?
They are mailed an “AC.174 form” detailing the disability and unemployment rates. However, this does not arrive at the employer until AFTER the rate has already been changed. Imagine an insurance carrier communicating a LTD increase months later!
What are rates based on?
The prior year’s claims experience vs. premium paid and existing reserve deficit/surplus.
What is this important?
With the new employer rates, we can begin accurately quoting groups with 10/1 and 1/1 effective dates. Now is the time to prepare lists of groups (excel file is the easiest) that you would like to see proposals on. The earlier the better as the state’s turnaround time releasing data to us slows noticeably in August/September.
What do you need to quote
<300 lives: employer name and TAX ID
>300 lives: employer name, TAX ID, and census with age/sex/salary