MSF Achieves Average Employee Compensation Rates 10%, declares $ 20 million in dividend
- 05/14/21
- WorkersCompensation.com
Helena, MT (WorkersCompensation.com) – On Wednesday, the Montana State Fund (MSF), the largest state employee compensation plan, announced an average rate cut of 10% and a dividend of $ 20 million for policyholders. The decision was made at the most recent spring meeting of the MSF Board of Directors.
Governor Greg Gianforte had this to say about the announcement: “This is great news for job creation in Montana. As we get our economy back on track and the Montans get back to work, it will be great to see the Montana State Fund cut pay rates and announce this dividend for Montana employers. “
Doctors Without Borders has paid a dividend every year since 1999. With the additional $ 20 million, dividends paid to policyholders add up to $ 326 million, of which $ 220 million has been paid since 2015 (the year of the most recent rate increase) and 38% lower than in 1990 (first year of operation) from MSF).
“This is wonderful news for Montana employers. Average employee compensation rates are continuing to decline and safe employers are getting cash back in the form of dividends. The Montana employee compensation system has never been in such good shape,” said MSF Chairman Richard Miltenberger .
Commenting on the decision, Laurence Hubbard, President and CEO of MSF, said: “Last fall, given the economic uncertainty surrounding the coronavirus pandemic, MSF’s Board of Directors took a conservative approach when it paid a dividend of $ 20 million At the same time, they have agreed to re-examine their decision to consider an additional dividend in spring 2021. I am pleased to announce that the Board of Directors will pay an additional dividend of € 20 million by the end of May. We hope it does. These funds can help Montana employers continue to weather the COVID-19 storm. “
Dividends paid to employers are a direct result of better than expected investment performance and positive results in occupational safety and do not represent an overload on interest rates. Qualified employers receive a safety dividend based on the premium paid and the losses incurred during a given dividend year have arisen.
MSF’s financial stability is a positive force in the Montana economy as employee compensation insurance is often the highest cost on an employer’s books, along with payroll. Stability and predictability are important for employers, especially small businesses. MSF insures approximately 19,000 small businesses.
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