The Ohio Bureau of Workers' Compensation Oversight Commission (BWCOC) met Thursday in Columbus and approved an investment policy, an investment committee charter and heard financial reports that offered good and bad news on operating and income figures.
Today, the Workers’ Compensation Oversight Commission adopted a new investment policy for the Ohio Bureau of Workers’ Compensation (BWC). The policy limits BWC investments to fixed-income assets. The policy prohibits BWC investments in equities. In response, the following joint statement was issued by the Ohio Council of Retail Merchants, the National Federation of Independent Business/Ohio, the Ohio Chamber of Commerce, and the Ohio Manufacturers’ Association.
FOR IMMEIATE RELEASE
April 27, 2006
Business Groups Oppose Workers’ Compensation Oversight Commission Investment Policy
COLUMBUS – Today, the Workers’ Compensation Oversight Commission adopted a new investment policy for the Ohio Bureau of Workers’ Compensation (BWC). The policy limits BWC investments to fixed-income assets. The policy prohibits BWC investments in equities.
In response, the following joint statement was issued by the Ohio Council of Retail Merchants, the National Federation of Independent Business/Ohio, the Ohio Chamber of Commerce, and the Ohio Manufacturers’ Association:
“Today, the Workers’ Compensation Oversight Commission (WCOC) adopted a new investment policy for the Bureau of Workers’ Compensation (BWC) which will expose Ohio employers’ to higher and higher workers’ compensation premium rates. As advocates for our thousands of member companies and their hundreds of thousands of employees, our organizations oppose this policy strongly.
“The new policy prohibits the BWC from investing any funds in equities. The policy also restricts the types of fixed-income assets in which the BWC can invest.
“By adopting this ultra-conservative policy, the WCOC is retreating from any investment risk, when it should be setting standards designed to optimize returns while protecting the State Insurance Fund from imprudent BWC investments. The effect will be an underperforming fund with a deteriorating surplus that will require higher than necessary premium rates.
“The BWC has contracted with Wilshire Consulting to conduct an asset-liability study that will provide the WCOC with the proper tools to determine risk tolerance for various asset allocations. We urge the WCOC to use this study as expeditiously as possible as the basis for reconsidering its investment policy.
“The General Assembly recently placed a fiduciary duty on the members of the WCOC. If the WCOC maintains its new investment policy, it will fail its fiduciary obligation to its policy-holders, the employers of Ohio. By doing so, the WCOC will stunt the Ohio economy and kill jobs.
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Contact: John Mahaney, Ohio Council of Retail Merchants (614) 221-7833
Ty Pine, National Federation of Independent Business/Ohio, (614) 221-4107
Andrew Doehrel, Ohio Chamber of Commerce, (614) 228-4201
Eric Burkland, Ohio Manufacturers’ Association, (614) 224-5111
Related Files
Joint Business Association Letter to BWC Oversight Commission
