Gov. Mike DeWine’s proposed $1 billion workers’ compensation dividend would bring the amount returned to Ohio employers during his administration to $10.2 billion, according to his office.
State records show nearly 80% of that total was distributed through three extraordinary dividends in 2020, when Ohio used the Bureau of Workers’ Compensation system to provide financial relief during the COVID-19 pandemic.
The BWC Board of Directors is scheduled to vote Aug. 28. These are five takeaways from the article, which reported the proposed payment to roughly 250,000 public and private employers.
1. Nearly $7.9 billion was distributed in 2020
BWC approved three dividends totaling $7.88 billion in 2020, accounting for about 77% of the $10.2 billion that DeWine’s office says would have been returned during his tenure if the latest proposal is approved.
The agency distributed $1.54 billion in April, equal to about 100% of employers’ premiums for the 2018 policy year. It approved another $1.34 billion in October, roughly matching premiums for the 2019 policy year.
A $5 billion dividend followed in November. That payment was approximately four times what employers had been billed for the 2019 policy year.
An Ohio auditor’s bulletin said the payments were intended to ease financial pressure on private and public employers during the pandemic.
2. The administration’s figures don’t produce an exact year-by-year total
DeWine’s office said the proposed dividend would bring distributions during his administration to $10.2 billion.
The publicly announced rounded figures total about $10.4 billion: $1.5 billion in 2019, $7.88 billion in 2020 and the proposed $1 billion payment.
The governor’s announcement did not provide a year-by-year accounting explaining the roughly $200 million difference. The discrepancy could involve rounding or adjustments to the amounts ultimately distributed, but the available figures do not resolve it.
3. The new dividend would return about 90% of one year’s premiums
The proposal would return about 90% of eligible employers’ premiums for the 2022 policy year.
About 250,000 private and public employers participating in the state insurance fund could qualify. Individual payments would depend on the premiums each employer paid.
Employers must complete their 2022 payroll reconciliation and resolve any lapsed-payment status by Aug. 28 to remain eligible.
4. BWC’s finances improved after declines during and after the pandemic
The pandemic dividends reduced the combined net position reported by BWC and the Industrial Commission of Ohio. An investment loss contributed to another decline in 2022.
The agencies’ combined net position increased from $7.5 billion in 2022 to $9.3 billion in 2025, according to audited financial statements.
They recorded $3.34 billion in net investment income during fiscal years 2023 through 2025. DeWine’s office attributed the proposed dividend to BWC’s financial management and investment returns.
5. The payment still requires board approval
Ohio law permits the BWC board to return money when it determines that collected premiums have produced a surplus larger than needed to protect the State Insurance Fund’s solvency.
That decision is based on recommendations from the board’s actuarial committee and an assessment of the fund’s ability to cover future claims and expenses.
The board is scheduled to vote Aug. 28. Until then, the $1 billion dividend remains a proposal rather than an approved payment.
