Surcharge Fee Refund Deadline is June 1, 2010

As we previously reported, The Illinois Chamber of Commerce filed suit on the basis that the 1.5% surcharge on workers’ compensation insurance premiums and a similar “payroll tax” on self-insured employersconstituted an unauthorized tax on Illinois employers and insurers. The suit sought to reduce the level of the fees assessed against employers and insurance carriers and to strike the provisions allowing for use of any of the collected monies by the General Revenue Fund. That litigation recently resulted in a tentative $44 million settlement.

All employers that paid a Workers’ Compensation Operations Fund Surcharge from July 1, 2003 to June 30, 2009 may be entitled to a partial refund of that surcharge payment pursuant to the settlement.

NOTE: Self-insurers do not pay this surcharge and therefore are not eligible for the refund. The class action, filed by a different party, only sought relief for employers that paid the WC Operations Fund Surcharge.

All claims must be submitted to the Claims Administrator at the address below by June 1, 2010.

Robert Langendorf
Claims Administrator
134 N. LaSalle St., Suite 1515
Chicago, IL 60602
Telephone (312) 782-5933

The Claims Administrator shall determine which claimants are eligible for partial refunds. The Claim Form and other Class Action Settlement documents must be completed along with the Claim Form Worksheet, which explains how to determine the potential amount of refund based on previous workers’ compensation insurance invoices showing the amount of surcharge billed, proof of the amount of previous workers’ compensation insurance premium payments, or certification of the number of employees employed during the settlement period. Pursuant to the settlement terms, all claims will be reduced pro rata if the aggregate amount of claims received exceeds the settlement amount.

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