Office of Connecticut State Treasurer Denise L. Nappier

Office of State Treasurer
Denise L. Nappier

About the Second Injury Fund

The State Treasurer is the Custodian of the Second Injury Fund ("SIF" or "the Fund"), a state operated workers’ compensation insurance fund. During 2005, the Fund made many significant achievements, which included: completely paying off the long-term debt, originally scheduled to be paid off in 2016; dramatically reducing the rates charged to Connecticut businesses; reducing the program’s unfunded liabilities; and, gaining approval for pro-business legislative reforms.

The Second Injury Fund was established in 1945 to discourage discrimination against veterans and encourage the assimilation of workers with a pre-existing injury into the workforce. Prior to July 1, 1995, the Fund provided relief to employers when a worker who already had a pre-existing injury or condition was hurt on the job and that second injury was made “materially and substantially” worse than it would have been if not for the first injury. Employers transferred liability for these workers’ compensation claims to the Fund after 104 weeks, if certain criteria were met under the Connecticut Workers’ Compensation Act.

In addition to “second injury” claims, the Fund today is also responsible for claims which involve uninsured employer claims, cost of living adjustment (COLA) reimbursement claims, and, on a pro rata basis, reimbursement claims to employers of any worker who had more than one employer at the time of the injury. The Fund’s operations are financed by assessments on all Connecticut employers.

Learn more about:

Fiscal Year Highlights	Mission & Operations	Employer Assessments	Reducing Liabilities
Debt Reduction History	Assessment Audit Program	History of the Fund	Blue Ribbon Commission
Legislative Reforms	Documents & Forms	FAQ	News Releases

Fiscal Year 2011 Highlights

The Second Injury Funds’ major achievements during the past year have continued the implementation of Treasurer Nappier’s management reforms.

Highlights for fiscal year 2011 include:

2011 marks the thirteenth consecutive year in which the Fund either reduced or maintained assessment rates for Connecticut businesses - representing the longest period of time without a rate increase in the history of the Fund.
Provided $31.8 million in indemnity, medical and settlement payments to injured workers. The number of injured workers receiving bi-weekly benefits is now 315 compared to 326 a year ago.
Achieved a total of 177 settlements at a cost of $8.1 million. Through June 30, 2011, the Fund has paid 3 injured workers receiving bi-weekly benefits settlements at a cost of $.5 million with an estimated future net savings of $1.3 million
A total savings of $2.2 million in medical costs was realized using the services and Preferred Provider Organization Networks offered by our contracted medical vendors. The Fund worked in conjunction with the nurse consultant to review all bills for causal relation, contract compliance and duplicate payments.
Continued to implement the General Assembly’s 1996 mandate to reduce the financial impact of the Fund on Connecticut’s businesses:
As of June 30, 2011 the Fund’s open claim inventory was 2,593 (See figure 17-1)
Reserves (estimated unfunded liability) for all open claims were $414.9 million, a reduction of $12 million (2.8%) from a year ago. (See figure 17-2)
Worked with the Second Injury Fund Advisory Board to help the Fund carry out its mission.

Figure 13.1

Figure 13-2

CT.gov Home | Send Feedback | Ask a Question | Login