Governance
The California Labor Code (see LC Sec. 3700) requires that all self-insured private-sector companies and organizations be members of the Fund, subject to assessments by the Fund to sustain its legal responsibilities. Member assessments are necessary to sustain Fund operations, including on-going workers compensation expenses, and ensure that adequate assets are pooled to cover known and potential workers compensation obligations arising from insolvent private self-insured entities.
The Fund’s Executive Director serves as Chief Executive Officer and reports to a seven-member Board of Trustees that oversees the Fund’s operations. The Board is comprised of six elected representatives from member companies, as well as one ex officio representative on the Board from the California Department of Industrial Relations (DIR). DIR provides regulatory oversight of the Fund, including approval of its annual the Fund’s Alternative Security Program (ASP) deposit structure; liabilities retained by the Fund; member assessment rate calculations and amounts; investment policy, and the release of monies for the Fund to operate.
The Fund operates in accordance with state law (See Labor Code Sec. 3700), DIR regulations and policies spelled out in the Fund’s comprehensive set of bylaws, which are open to Fund members, regulators and the public.