Missouri State Auditor Thomas A. Schweich
Missouri State Auditor Thomas Schweich released a report on Missouri’s Second Injury Fund today stating the fund is insolvent due to fund cap limitations within 2005 legislative changes.
Schweich stated in his report that the $28.1 million liability exists due to a three percent cap on the surcharge rate that was implemented in 2005.
“Auditor Schweich’s release is no surprise to the business community,” said Ray McCarty, president of Associated Industries of Missouri. “AIM and other Missouri employers do take issue with his assumption that the surcharge cap caused the insolvency of the fund. In fact, paying claims for non-work related conditions such as diabetes, obesity or old sports injuries has resulted in outrageous payments from the Fund.
“The entire business community embraced a package of reforms and additional funding more than a year ago. But, the plan did not satisfy plaintiffs’ attorneys who simply want to profit at the expense of employers.