Legislature acts to ease shortfall, pay disabled workers
OKLAHOMA CITY (AP) -- The Oklahoma Legislature rushed through a bill Wednesday to ease a shortfall at the Multiple Injury Trust<br>Fund so an estimated 1,800 permanently injured workers can get their disability
Wednesday, March 22nd 2000, 12:00 am
By: News On 6
OKLAHOMA CITY (AP) -- The Oklahoma Legislature rushed through a bill Wednesday to ease a shortfall at the Multiple Injury Trust Fund so an estimated 1,800 permanently injured workers can get their disability checks.
The measure was promptly signed into law by Gov. Frank Keating.
House Bill 2395 allows the State Insurance Fund to advance money to the injury fund until July 1, 2000, to pay monthly checks based on permanent total disability awards.
Rep. Chris Hastings, R-Tulsa, said the shortfall is the result of a drop in claims and awards, plus a reduction from 10 percent to 8 percent last year in the assessment of awards that goes into the Multiple Injury Trust Fund.
"Even if the Legislature had not approved that reduction, the trust fund would have been short because of a significant decrease in the number of claims and awards" and a decline in the average amount of awards, Hastings said.
Last year's bill produced a substantial savings to employers.
Last week, Richard Cole, special counsel to the Multiple Injury Trust Fund, said about 1,800 people with permanent job-related injuries would not get their next disability checks, which range from $173 to $213 a week.
Officials said Wednesday's action will mean checks will go out on Friday and be received early next week by injured workers.
Sen. Brad Henry, D-Shawnee, sponsor of the bill in the Senate, said it was a stopgap measure that will give lawmakers time to work on "a global" solution to the problem.
"If we don't do anything, they are not going to get paid this week or next week," Henry said.
The bill passed the House 95-0 and the Senate 46-0.
Under the plan, the State Insurance Fund will be paid a 7 percent administrative fee of the outstanding balance of the advanced funds until they are repaid.
The Multiple Injury Trust Fund, previously known as the Special Indemnity Fund, has been known for being notoriously slow in paying claims for permanent partial disabilities.
Records show the fund owes about $34 million in compensation, plus simple interest on the debt, for more than 5,000 claims filed by workers who sustained disabilities from a combination of job-related injuries. The fund is 51/2 years behind in paying those claims.
Officials said the shortfall had threatened to stall a catchup in payment of those claims.
Hastings said the bill will "enable these people to eat and keep their lights on, provide them with some level of subsistence."
Get The Daily Update!
Be among the first to get breaking news, weather, and general news updates from News on 6 delivered right to your inbox!