State Fund Holds larger Surplus, Pays smaller Dividends than other State-Chartered Carriers

The Ohio Bureau of Workers' Compensation and California State Fund have one thing in common: Both ended 2013 with more than $6 billion in surplus. No other state fund came anywhere close to that kind of cash stockpile. But while the Ohio BWC has decided to give $2 billion back to its policyholders over the past two years, California State Fund is hoarding its cash. The carrier's board of directors approved a relatively miserly $37 million dividend payment to 2014 policyholders, following an $85 million dividend in 2013. At least one insurance industry observer says it's time for ...