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Summary of Duties

Duties

The Board of Directors is an independent body of fiduciaries entrusted with setting overall administrative policy for BWC.

Summary of duties

  • Advising BWC's administrator on all policy and operational matters
  • Safeguarding the assets of Ohio's workers' compensation system, including maintaining the solvency of the State Insurance Fund
  • Providing independent verification of BWC's financial and operational performance

Highlights of specific duties
Please see ORC 4121.12 for a comprehensive listing of all board duties.

  • State Insurance Fund - The board has specific responsibility to safeguard and maintain the solvency of the State Insurance Fund and other funds.
  • Investment duties
    • Approve the investment policy developed by the investment committee ensuring that the policy satisfies the requirements in the law
    • Review and publish the investment policy statement annually, and prohibit any investment contrary to the policy
    • Vote to open each investment class and adopt rules establishing standards for investing in the class
    • Submit an annual report to the governor and the leaders of the four legislative caucuses on the value and performance of each investment class.
    • Vote to close any investment class
  • Actuarial duties
    • Prepare and submit (no later than 60-days following introduction) an actuarial analysis of any introduced legislation expected to have a measurable financial impact on BWC. This analysis must include the following:
      1. A summary of the statutory changes being evaluated;
      2. A description of or reference to the actuarial assumptions and actuarial cost method used in this report;
      3. A description of the participant groups used in the report;
      4. A statement of the financial impact of the legislation, including the resulting increase, if any, in employer premiums, in actuarial accrued liabilities and the relevant percent premium increase associated that would be required to amortize the increase in those liabilities as a level percent of employer premiums over a period not to exceed 30 years;
      5. A statement of whether the employer premiums paid to BWC after enactment of the proposed change should be sufficient to satisfy the funding objectives the board establishes.
    • Prepare an annual actuarial report that consists of valuation of the assets, liabilities and funding requirements of all BWC funds, which will include the following:
      1. A summary of compensation and benefits provided;
      2. A summary of the census data and financial information used;
      3. A description of the actuarial assumptions, cost method, and asset valuation method used;
      4. A summary of findings that includes actuarial accrued compensation and benefit liabilities and unfunded actuarial accrued compensation and benefit liabilities;
      5. A schedule showing the effect of any changes in compensation and benefits, actuarial assumptions, or cost methods since the previous report;
      6. This report must be submitted to the legislative committees that hear BWC legislation no later than Sept. 1 of the year following the year studied.
    • Conduct an investigation every five years to update BWC's actuarial assumptions. The investigation should analyze the experience of employers, the mortality, service and injury rates of employees, and the payment of temporary total disability, permanent partial disability, and permanent total disability. The board must submit this report to the standing legislative committees that hear BWC legislation by Nov. 1 following the fifth year studied and must include all of the following:
      1. A summary of relevant decrement and economic assumption experience;
      2. Recommended changes in actuarial assumptions to be used in actuarial variations;
      3. A measurement of the financial effect of the recommended changes.
  • General administrative duties
    • Review BWC's progress in meeting cost and quality objectives, and in complying with relevant statutes
    • Submit an annual report to the Governor, Ohio Senate President and House Speaker, including the following specific criteria:
      1. An evaluation of the cost and quality objectives of the bureau;
      2. A statement of the net assets available for the provision of compensation and benefits, as of the last day of the fiscal year;
      3. A statement of any changes that occurred in the net assets available, including employer premiums and net investment income, for the provision of compensation and benefits and payment of administrative expenses, between the first and last day of the fiscal year;
      4. The following information for each of the six consecutive fiscal years occurring previous to the report:
        • A schedule of the net assets available for compensation and benefits;
        • The annual cost of the payment of compensation and benefits;
        • Annual administrative expenses incurred;
        • Annual employer premiums allocated for the provision of compensation and benefits.
      5. A description of any significant changes that occurred during the six years for the portion of the report described above that affect the ability of the board to compare that information from year to year.
    • Review all independent financial audits
    • Study issues as requested by the Governor or Administrator
    • Contract with all of the following:
      1. Independent actuarial firm to assist administrator in setting premium rates;
      2. Independent investment counsel to assist the investment committee;
      3. Independent fiduciary counsel to assist the board in its duties.
    • Advise and consent on all of the following:
      1. Administrative rules for the classification of occupations or industries, for premium rates and contributions, for the amount to be credited to the surplus fund, for rules and systems of rating, rate revisions, and merit rating;
      2. Administrator duties and authority;
      3. Rules adopted for HPP and QHP;
      4. Rules regarding the Public Employment Risk Reduction Program and the protection of public health-care workers from exposure incidents.
    • Meet with the Governor to discuss administrator performance
    • Develop and participate in a board education program which must consist of the following:
      1. An orientation for newly appointed members;
      2. A continuing education program;
      3. A curriculum that includes member duties, compensation and benefits, ethics, governance processes and procedures, actuarial soundness, investments.
    • Appoint the members of the Audit, Investment and Actuarial committees
    • Create any committee in addition to the Audit, Actuarial, and Investment committees the board deems necessary to perform its duties

 


Terms of service

Terms

  • Initial board members will serve one-, two- or three-year terms.
    Please see member biographies for individual terms.
  • After the initial appointments, board members will serve three-year terms.
  • The Governor appoints board members, with the advice and consent of the Ohio Senate.
  • Members can be reappointed.

Compensation

  • $2,500 for attending one or more Committee meetings each month, and $2,500 for attending one or more board meetings each month
  • Not to exceed $60,000 per year when combined with compensation for committee assignments
  • Must attend at least one board meeting per month to receive compensation for that month