Liabilities From Insolvent Trusts Now Down to $34 Million, Board Reports

Thursday, July 5, 2018 | 0

The outstanding liability left by the insolvency of 20 New York self-insured group trusts has shrunk, from more than $900 million to $34 million, the state Workers' Compensation Board reported.

Clarissa Rodriguez

Legislation passed in 2011 requires the board to make regular reports on the status of the trusts, and the latest report shows that the debt has been whittled down considerably in the last seven years.

Most of the remaining liability is in the Empire State Transportation Workers' Compensation Trust, about $30.5 million, and in the Empire State Towing and Recovery Association Self-Insurance Trust, about $3.6 million, the report shows.

The insolvencies triggered a number of lawsuits against trust managers, and the board has now signed final settlement agreements with 2,900 defaulted trust members.

The total number of defaulted trust claims administered by the by the board has dropped, from more than 7,500 in 2011, to 203 today, according to the report, which was signed by board Chairwoman Clarissa Rodriguez.

The board has reduced the liabilities in part by issuing bonds under authority provided by legislation. The proceeds from the bonds have been used to execute 20 assumption-of-liability policies, Rodriguez said.