The Fund members pay one assessment each year due July 1st. The assessment is comprised of two separate components; a Default Loss Fund (DLF) and an Excess Liability Protection (ELP) fee. What are these two fees?

The DLF fee funds the annual operations of the Security Fund, including paying claims obligations for defaulted estates the Fund administers, ensuring that injured workers receive the benefits to which they are entitled. This fee also contributes toward building the assets of the Fund to protect against future default estates the Fund may need to administer.

The ELP is the assessment charge billed by the Security Fund for posting ASP collateral for a participating member with a credit level index of 1 through 16. Members with a credit level index of 17 and below are excluded from participation in the ASP and do not pay the ELP fee. Excluded members are responsible for posting collateral directly with OSIP.

How is the assessment calculated, and how much will it be? This information is essential for members to budget for the expense. Because of multiple variables, actual assessment amounts are not available until 30 days before they are due. However, it is possible to estimate the assessment amount using the calculator tool on this website. 

Let's discuss how the Fund calculates the fee.

Three variables are used to calculate the ELP fee:

  1. The amount of collateral deposit the member must post as determined by their annual actuarial study, 
  2. the member's financial strength as reflected in their credit level index, and 
  3. the coming year's assessment fee structure established by the Fund's Board of Trustees.

Using the calculator tool, a member enters their collateral deposit amount, and credit level index, and the calculator will provide an estimated breakdown of the assessment fee using the current year's assessment structure. 

NOTE: The assessment fee structure for the coming year is typically not available until shortly before the current assessment invoices are generated. Using the prior year's structure will provide a reasonable estimate for planning purposes. The two key factors that typically most directly impact the increase or decrease of the annual assessment fee are changes in the member's collateral deposit requirement size and changes in the member's credit level index.