Gov. Edward Rendell reported that Pennsylvania will decrease workers’ compensation insurance rates, saving the state’s employers approximately $100 million on their 2006 premiums. The Governor said Pennsylvania continues to cut the cost of doing business in the state.
This is the third time Pennsylvania has reduced workers’ compensation costs in the last four years.
The $100 million in workers’ comp savings for Pennsylvania businesses comes less than a week after the Governor proposed $221 million in additional business tax cuts as part of his 2006-2007 budget. Overall, with the tax cuts proposed in the new budget, if passed by the legislature, Governor Rendell will have eliminated $986 million worth of business taxes since he took office three years ago.
“Today we are continuing our effort to drive down the cost of doing business in Pennsylvania,” Gov. Rendell said. “Three years ago, this administration implemented a new workplace safety initiative called Work Safe PA to give businesses and employees the information and technical assistance needed to enhance safety practices in the workplace. And it’s working — today we see the tangible benefits of that effort in the form of lower workers’ compensation costs.
“Businesses have benefited from lower workers’ compensation premiums in three out of the last four years, partly because our workplaces are safer. When there are fewer workplace accidents, the cost of doing business goes down and productivity goes up.”
With the additional workers’ comp reduction of $100 million, reductions have totaled more than $200 million under Gov. Rendell.
The Department of Labor & Industry’s Certified Workplace Safety Committee program helps businesses establish safety practices that protect workers. Businesses with Certified Workplace Safety Committees receive a five percent discount on their workers’ comp premiums, in addition to the average 8.58 percent decrease announced.
The overall 8.58 percent loss cost decrease is an average. Some employers may see more of a decrease, while others may not.
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