Report: Pinnacol Privatization On Desk for 2021| Employees Compensation Information

Friday, February 26, 2021 | 64 | 0 | min read

The Colorado Springs Gazette reports that lawmakers plan to privatize the privatized Pinnacol Assurance during the 2021 session.

MP Matt Soper

Rep. Matt Soper, R-Delta, is reportedly planning to enact law to exempt Pinnacol from state control in order to raise $ 305 million for a program to help energy workers transition into new careers .

The last serious foray into privatization of the state-approved insurer of last resort was in 2012 when former Governor John Hickenlooper set up a task force to analyze the conversion. The group eventually voted against the procedure.

Soper’s law requires Pinnacol to remove its 650 employees from the state pension plan, which would cost the carrier about $ 234 million. Soper said Pinnacol could use its $ 1 billion reserve to cover pension obligations.

Pinnacol could also lose its status as an insurer of last resort under Soper’s plan. According to his invoice, the insurance officer would have to obtain offers from freight forwarders from 2025 who would like to write insurance cover for employers who would otherwise not be able to take out comp insurance.

Edie Sonn, vice president of communications and public affairs at Pinnacol, said the airline was keen to make an offer.