Mo. auditor confirms insolvency of disability fund

Jan 11, 2013

There's not enough money in the state's Second Injury Fund to compensate for unpaid obligations.
There's not enough money in the state's Second Injury Fund to compensate for unpaid obligations.
Credit Andrew Magill / Flickr

A report from the Missouri auditor confirms that a state fund for disabled workers is insolvent.

State Auditor Tom Schweich said Friday that Missouri's Second Injury Fund had barely $3 million as of the end of 2012 but had unpaid obligations of $28 million.

The fund covers workers' compensation claims for employees who have previous injuries or disabilities and then suffer a new job-related injury. Auditors and financial analysts have warned for several years that the fund was on a path toward insolvency. But lawmakers have done nothing to address it.

The fund gets its money from a surcharge on workers' compensation insurance premiums paid by businesses. Auditors trace the fund's financial woes to a 2005 law the capped surcharges at 3 percent.