State plans on raiding assets of Pinnacol Assurance and taking away their ability to operate as an independent company.

Senate bills SB09-281 and SB09-273 are being heard today with a third reading on Monday April 13. These bills are trying to remand Pinnacol Assurance back to a state agency so the reserve assets that Colorado businesses have been paying into can be raided to pay for 500 million dollars of deficit in the state budget.  Since Pinnacol has been operating as a private insurance company, workers’ compensation insurance premiums have been reduced and additional dividends paid out to those companies with good claim history. Pinnacol and all Colorado businesses need help fighting these bills. 

Marcia Benshoof, Chief Business Officer for Pinnacol Assurance, explains the effect of the legislation even further: 

• Pinnacol is not a state agency, and it receives no state funding. In fact, it is required to be self-sustaining and, therefore, does not expose the state to financial losses. 

• Current law expressly prohibits any transfer of Pinnacol’s assets to the State General Fund.

• Pinnacol has a 5 year history of distributing dividends back to policyholders ($300 million), which will cease if these bills are passed.

• Pinnacol has reduced rates by 42%  ($212 million) over the last 4 years, which will cease if these bills are passed

• Pinnacol’s assets are not public funds! They are private funds set aside from premiums paid by Colorado businesses to ensure the safety and soundness of the company’s obligations to injured Colorado workers.

• This legislation is a shortsighted, ill-advised effort to fill a budget deficit. The ramifications are multi-faceted, including higher workers’ compensation costs, instability in the marketplace and uncertainty for injured workers and their families. 

• Pinnacol Assurance provides workers’ compensation insurance to 58,000 Colorado businesses.

Help Colorado’s businesses and economy, please take action now, and contact your state representative.