FY 2012 Premium Surcharge Rate (October 1, 2011 - September 30, 2012) Dear Workers’ Compensation Insurer:  In accordance with the provisions of the DC Workers’ Compensation Act of 1979, as amended, DC Code §32-1540, the purpose of this correspondence is to provide notification of the Fiscal Year 2012 “Premium Surcharge Rate for Workers’ Compensation Policies.” The Premium Surcharge Rate is .0251 or 2.51 Percent. The formula used to calculate the Premium Surcharge rate is as follows: Computation Factors Total Fiscal Year 2010 Reported Losses (Self Insurers and Insurance Carriers) = $107,104,697.69 Total Fiscal Year 2010 Reported Losses (Carriers Only) = $79,305,031.42 Fiscal Year 2012 Special Fund Assessment = $4,500,000.00 2010 Paid Workers’ Compensation Insurance Premiums = $132,846,664.00 Computations 1.   Determine Insurance Carriers’ Proportion of the Total Paid Losses for the Preceding Fiscal Year.       Insurance Carriers Paid Losses divided by Total Paid Losses =       Insurance Carriers Proportion: $79,305,031.42 divided by $107,104,697.69 = .7404 2.   Determine the Dollar Amount of the Special Fund to be Collected through the Employer Insurance        Premium Surcharge.       Special Fund Assessment x Insurance Carrier Proportion of Total Paid Losses =       Amount to be Collected through Insurance Premium Surcharge: $4,500,000 x .7404 =  $3,331,800.00 3.  Determine Premium Surcharge Rate.       Amount to be Collected divided by the Preceding Year’s Paid Workers’ Compensation      Insurance Premiums = Premium Surcharge Rate: $3,331,800.00 divided by $132,846,664.00 = PREMIUM SURCHARGE RATE [OCTOBER 1, 2011 THROUGH SEPTEMBER 30, 2012] .0251 or 2.51 Percent I hope that this information is helpful. Feel free to contact me with questions or concerns.  I can be reached by email at mohammad.sheikh@dc.gov or call (202) 671-1000. Sincerely, Mohammad R. Sheikh Associate Director for Labor Standards