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Multiple Injury Trust Fund Receives Additional Aid
from CompSource Oklahoma
Okla. City, OK - CompSource Oklahoma (CSO) again came to the rescue
of disabled Oklahoma workers showing its continued support and
willingness to help the state in time of need.
On October 26, in a special emergency meeting the Board of Managers for CompSource
Oklahoma approved an $11.3 million line of credit be issued to the Multiple Injury Trust
Fund allowing it to continue sending weekly checks to some 2,000 Oklahoma workers.
"We are very pleased to be able to help the Multiple Injury Trust Fund
during their time of need," said CompSource Oklahoma Commissioner
and CEO, Terry McCullar. "It's an important issue, one that we were
immensely concerned about and one that we are glad to see has come
to resolution through the legislature."
A bill was signed Tuesday by Gov. Frank Keating permanently solving
the fund's long-term cash flow problems by increasing the assessment
tax to a maximum of 6 percent (five percent on self insureds). Although
the increase is estimated to generate about $25 million a year for the MITF,
the proposed increase will not be enough to support payments on its own
until May 2002 which is why CompSource Oklahoma was asked to step in.
Although CompSource Oklahoma is not responsible for the liabilities of the
MITF, this is the sixth time the quasi-state agency has come forward to assist
MITF. CSO originally loaned $38 million to MITF to help them on repayment
of permanent partial awards that had been delinquent for over five years.
An additional $6 million was loaned at a later date.
During the last two years of MITF cash shortages, CompSource Oklahoma
has continued to pay dividends to its policyholders in which the MITF
has also shared. Considering dividends and loans, approximately $100 million
of CSO's cash and investments have been utilized toward the rescue of
the MITF of which approximately $70 million have been direct payments to them.
"We are grateful to the lawmakers of Oklahoma for passing legislation which
will allow us to continue to pay benefits to injured workers…and grateful to
CSO for serving as a stop gap measure until the new legislation takes effect,"
said Richard Cole, Special Council for the MITF.
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