Government Overview
The Security Fund was created as an independent not-for-profit organization in 1983 by the California State Legislature. The Security Fund was designed to ensure that employees of private self-insurers that default on their workers compensation obligations will continue to receive statutory benefits. The State of California provides no financial support to the Fund since it demands that all of the Fund’s operations and obligations be borne by its member entities through assessments.
California law requires ongoing regulatory coordination and oversight of both the Security Fund and its self-insured member entities. Member entities elect six (6) representatives, from among the member entities, to serve four year terms on the Fund’s Board of Trustees.
The Director of the Department of Industrial Relations (DIR) and its Office of Self Insurance Plans (OSIP) provides regulatory enforcement and administrative control over all workers compensation self-insured entities operating in California.