Wlorkers Compensation Cost to Superior School District | Explore Superior

Maintaining Safe Work Environment Saves Money

1565

Experience Mod=Good News= .82

By Monica Tikkanen

Wlorkers Compensation Cost to Superior School District | Explore SuperiorEmployers in Wisconsin have had to cover employees with a worker’s compensation insurance since the law was enacted in 1911. Wisconsin was one of the early states to enact such a law.

The District pays a premium to an insurance company to manage the laws governing worker’s compensation. The cost of the premium to pay benefits is a complicated formula, some of which is based upon wages paid in different employment categories.

Once a base premium is calculated, the base premium is multiplied by what is called an experience modification factor or the called the “experience mod.”

All experience mod always starts with a base of “1.” Any premium amount multiplied by “1” yields the same premium base, but when the experience mod is different than “1” the premium is adjusted specific to the risk that the employer should be charged. For example, if an employer’s history of accidents that lead to benefits tends to be minor, the employer’s experience mod number can be LESS THAN ONE.

When the experience mod is less than one, the employer’s premium is actually less than the base premium. In 2015-16 the experience medication factor for the School District of Superior is .82 or the District only has to pay 82% of the base premium. Saving 18 points (18%) saves the District nearly $61,000 in premium.

The annual premium for 2015-16 is $277,583 and would have been $338,515 if the claim history was worse. Saving premium dollars means a lot to a school district in these challenging budget times.

In the School District’s Mission, Vision and Goal statement, we must “maintain a safe environment” in order to reach Goal # 4, “All members of the learning community will develop and maintain a healthy, physical, emotional and sustainable environment.” To obtain an experience medication factor of .82 does not come be accident, no pun intended.

Safety is the focus when all new employees are orientated through the HR department. Through the District’s “Eyes on Safety” Program, employees who suggest a safety improvement that is implemented will award $100 in a school district account. Safety training is provided continually to various segments of the employees. An administrative safety committee strives to improve safety for students, staff and visitors throughout the year’s committee work.

Experience modification factors are calculated annually by the State and applied to annual premium bases. The District’s experience mod numbers have ranged from .74 to 1.25 in the past 10 years. Striving for a constant safety climate evens out the ups and downs of premium rates for this benefit.

It takes a thousand employees to be vigilant about personal safety to keep the experience modification number on an even keel, and keep each other safe. We are pleased to share the news about a .82 experience mod number with the public.

Monica Tikkanen, HR Director, School District of Superior | Explore Superior

Monica Tikkanen, HR Director, School District of Superior

Monica Tikkanen is the Director of Human Resources for the Superior School District




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