California Department of Industrial Relations Director John C. Duncan has issued an announcement advising all interested parties that Mervyn’s LLC is in default of its obligations to pay workers’ compensation benefits for injuries during the period it was self-insured, Feb. 1, 1990 through Aug. 28, 2004.
Mervyn’s LLC is the successor to Mervyn’s. Mervyn’s had been a “partial” participant in the alternative security program (ASP) within the Self Insurance Plans (SIP) program since its certificate of consent to self insure was revoked after its spin-off from Target Corp. At the time of revocation, Mervyn’s posted $220,000 as required by regulations governing self-insured employers at that time. The balance of the deposit was covered by an ASP assessment which was paid yearly since 2003.
Both the deposit Mervyn’s had posted to secure these payments and the liability to pay benefits have been turned over to the California Self Insurers Security Fund. By law the Fund has 30 days to initiate payment. Through prior arrangement all payments to injured employees has been made through the end of November.
The Fund is a nonprofit mutual benefit corporation created by the State of California. Its purpose is to provide continuation of statutory workers compensation obligations to the employees of private employers which were legally self-insured for workers compensation in California and defaulted in their workers compensation obligations.
Mervyn’s employees with workers’ compensation claims for injuries received in the period Feb. 1, 1990 through Aug.28, 2004 may now contact the Tristar Risk Management Senior Claims Supervisor at Julieann.email@example.com.
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