Governor DeWine, BWC propose $1.5 billion for Ohio employers

Governor Mike DeWine (center) and BWC Administrator/CEO Stephanie McCloud (left) tour Reynoldsburg's Dynalab, Inc., where they announced the proposal to send $1.5 billion to Ohio employers this year.

Governor Mike DeWine and BWC Administrator/CEO Stephanie McCloud on Monday proposed giving $1.5 billion to Ohio employers this year following strong returns on the agency’s investments.

“This is great news for Ohio,” said Governor DeWine. “This money will help Ohio employers expand their businesses, create jobs, and invest in capital improvements. Ohio’s economy is strong, and this proposal reinforces our goal of creating more jobs in the state.”

In addition to money for private businesses, the $1.5 billion proposal also includes money for public employers, including approximately $114 million for local governments and around $50 million for public schools. 

The money would be Ohio’s fifth investment return to private and public employers of at least $1 billion since 2013 and sixth overall during that time.

“Our investment portfolio is strong, our injury claims are falling, and our safety and wellness initiatives are making a difference,” said Administrator McCloud. “All of these actions mean big savings for employers, and we’re delighted to share this success with them.”

BWC invest employers premiums to grow the fund that supports injured worker claims. When investment returns are strong, BWC shares a portion of the investments with qualifying employers in the form of a dividend.

The $1.5 billion dividend equals 88 percent of the premiums employers paid for the policy year that ended June 30, 2018 (calendar year 2017 for public employers). BWC insures roughly 242,000 public and private employers.

Governor DeWine and Administrator McCloud announced their proposal this morning at Dynalab Electronic Manufacturing Services in Reynoldsburg. 

“I really appreciate this news today and what Governor DeWine and BWC are doing to help businesses succeed,” said Dynalab, Inc. President Gary James. “To compete in the global market, we must be on the cutting edge at all times and that takes resources. The check we’ll receive in late summer will definitely help.”

McCloud will present the proposal to the BWC Board of Directors on Wednesday during board committee meetings. A vote would follow at the board’s June 28 meeting. If approved, checks would be issued to employers in September.

BWC earned $1.3 billion in net investment income in 2018, a net return of 5.1 percent on assets of $26.9 billion.

The proposal continues a trend of lowering workers’ comp costs for Ohio’s private and public employers. BWC has repeatedly lowered premium rates in recent years, including a 12 percent cut for public employers that took effect in January and a 20 percent cut for private employers that begins July 1. The agency disbursed $1 billion or more to employers in 2013, 2014, 2017 and 2018. It also distributed $15 million in 2016 for public employers.

In total, BWC has saved employers nearly $10 billion in workers’ comp costs through dividends, credits, rate reductions, and greater efficiencies since 2011.

Safety pays for Columbus brewery

Land-Grant Brewing Co. learned BWC is more than “a cost of doing business.” The agency offers a variety of safety services, including safety experts, health and wellness plans and tens of thousands of dollars in grants to improve workplace safety so businesses can succeed.

Read their full story on the BWC Blog.

Looking out for aging workers

By Stephanie McCloud, BWC Administrator/CEO

Americans are living longer, and they’re working longer too. Today, one in every five American workers is over 65, and in 2020, one in four American workers will be over 55, according to the U.S. Bureau of Labor Statistics.

At the Ohio Bureau of Workers’ Compensation (BWC), we have 71 workers over the age of 65; 18 are over the age of 70. We truly appreciate our older workers and the years of service to our agency and the people of Ohio.

We recognize the value they bring to our agency, and the contributions of mature workers in general to the work force. They bring skills and knowledge to the workplace honed by decades of service and experience. They are dependable and productive. They have a strong work ethic.

They mentor our younger workers.

At BWC, our core mission is to protect Ohio’s workers and employers through the prevention, care and management of workplace injuries and illnesses. Workplace safety is a critical component of that mission, especially when it comes to our more seasoned workers. They are more susceptible to injury because of age-related challenges – decreases in mobility and sensory functions, reduced strength and balance, and longer reaction times.

When a 25-year-old worker falls on the job, for instance, she might bruise a knee. For a 70-year-old worker, it’s potentially a broken hip and a long recovery.

Older workers helped build our great state, and we want to keep them active, healthy and engaged in their work. We’re a charter partner in the STEADY U Ohio initiative to curb the epidemic of slips, trips and falls among older Ohioans. (One in three older adults will fall this year, according to the Ohio Department of Health.) These are the leading causes of worker injury, and they most often strike workers 45 and older (like me!).

These incidents are costly. The total estimated cost of falls among Ohioans aged 65 and older (medical costs, work loss) is nearly $2 billion annually in Ohio, according to the Ohio Department of Health. Most are preventable. At Steady U, workers and employers can find tips, tools and resources designed to reduce these incidents.

We urge all Ohioans to join us in creating a culture of safety across this state. Safe workplaces mean fewer, if any, injuries on the job, as well as steady production and lower costs for employers. And they mean more workers can go home healthy each day after their shift.

We are here to help. We have experts, grant dollars and other resources to make Ohio a safer place. To learn more, contact us at 1-800-644-6292 or visit our Division of Safety & Hygiene web page.

BWC eBriefs

From the BWC Blog

BWC’s Library teamed up with Ohio Memory – the statewide digital library program run by the Ohio History Connection and State Library of Ohio – to create an online archive of safety posters from as far back as the 1920s. See these posters and read more in BWC Librarian Amelia Klein’s blog, A new online poster archive takes visitors on a safe trip through time.

Upcoming program deadlines

Private employers interested in the Drug-Free Safety Program, Industry-Specific Safety Program and Transitional Work Bonus Program during the next program year must apply by May 31.

That’s also the deadline for private employers that participate in the Policy Activity Rebate program to complete the required 11 activity credits.

New safety training videos

The BWC Library has new safety training videos available for loan. Topics include cold stress and hypothermia, heat stress, and drugs and alcohol. To see the full listing, click here.

To find out more about the BWC Library's video collection and how to be a borrower, click here.

If you have questions and would like to speak with the video librarian, call 614-644-0018 or email library@bwc.state.oh.us

Better You, Better Ohio!

The backbone of a successful business is its workers, and the backbone of Ohio is its workforce. At BWC, we take our mission to take care of Ohio's workforce seriously.

That's why we offer Better You, Better Ohio! – a health and wellness program for Ohioans who work for small employers in high-risk industries.

The program provides a wealth of resources for workers to take ownership of their health and well-being and employers to manage and reduce their costs with a healthier workforce. Join the more than 10,000 who are already participating!