1. (1) General. When an insurer elects to pay supplemental disability due a worker with multiple jobs at the time of injury, the director will reimburse the supplemental amount quarterly, after receipt and approval of documentation of compensation paid by the insurer or service company. The director will reimburse the insurer, in care of the service company, if applicable.

2. (2) Requests for reimbursement. Requests for reimbursement must be submitted on Form 3504, "Supplemental Disability Benefits Quarterly Reimbursement Request," and must include at least:

   1. (a) Identification and address of the insurer responsible for processing the claim;
   2. (b) The worker's name, WCD file number, date of injury, Social Security number (if known), and the insurer claim number;
   3. (c) Whether the claim is disabling or nondisabling;
   4. (d) The primary and secondary employers’ legal names;
   5. (e) The primary and secondary employers’ policy numbers;
   6. (f) The weekly wage of all jobs at the time of the injury separated by employer;
   7. (g) The start and end dates for the periods of supplemental disability due and payable to the worker;
   8. (h) The amount of supplemental disability paid for the periods in subsection (g);
   9. (i) The quarter and year in which the payment was made;
   10. (j) A signed payment certification statement verifying the payments; and
   11. (k) Any other information the director requires.
3. (3) Administrative fee. In addition to the supplemental disability reimbursement, the director will pay the insurer an administrative fee based on the annual claim processing administrative cost factor, as published in Bulletin 316.

4. (4) Repayment of invalid or incorrect payments. The director may require the insurer to repay reimbursements made for invalid or incorrect payments. An invalid or incorrect payment may be identified at any time, including during an audit by the director, or when the insurer or assigned processing administrator identifies that supplemental disability benefits have been overpaid.

   1. (a) The director may periodically audit the insurer’s files to validate the amount reimbursed.

   2. (b) Invalid amounts include, but are not limited to:

      1. (A) Payments exceeding statutory amounts due to the insurer, excluding reasonable overpayments, as determined by the director;
      2. (B) Compensation paid as a result of untimely or inaccurate claims processing;
      3. (C) Payments of compensation that were not documented as required by OAR 436-050; or
      4. (D) Amounts in a third-party recovery that result in overpayment.
5. (5) Benefits due workers of a noncomplying employer. Supplemental disability benefits due subject workers of a noncomplying employer as defined in ORS 656.052 are not eligible for separate reimbursement under this rule, but remain a cost recoverable from the employer as provided by ORS 656.054(2).

6. (6) Claim disposition agreements, disputed claim settlements, and settlement stipulations.  Claim disposition agreements under ORS 656.236, disputed claim settlements under ORS 656.289, or other settlement stipulations regarding matters under ORS chapter 656, that include amounts for supplemental disability benefits due to multiple jobs, are not eligible to receive reimbursement from the Workers’ Benefit Fund unless they receive written confirmation from the director before the disposition, settlement, or stipulation is approved by the Worker’s Compensation Board.

   1. (a) For the purpose of this section, a “settlement stipulation” means a written agreement or an oral agreement if made on the oral record of a hearing and approved in writing by an administrative law judge, in which any matter contested between the parties, other than matters resolvable in a claim disposition agreement under ORS 656.236 or a disputed claim settlement under ORS 656.289, are resolved by agreement of the parties.

   2. (b) To receive written confirmation of a proposed disposition, settlement, or stipulation, the insurer must submit a request to the division. The request for written confirmation must include:

      1. (A) A copy of the proposed disposition, settlement, or stipulation, that specifies the exact amount of the proposed contribution to be made from the Workers’ Benefit Fund;
      2. (B) A statement from the insurer indicating how the amount of the contribution was calculated; and
      3. (C) Any other information required by the director.
   3. (c) The director will not confirm the disposition, settlement, or stipulation for reimbursement if the proposed contribution exceeds a reasonable projection of that claim’s future liability to the Workers’ Benefit Fund.

Statutory/Other Authority

ORS 656.726(4)

Statutes/Other Implemented

ORS 656.210

History

WCD 5-2025, amend filed 12/23/2025, effective 01/01/2026
WCD 14-2024, amend filed 06/07/2024, effective 07/01/2024
WCD 7-2020, amend filed 03/13/2020, effective 04/01/2020
WCD 6-2016, f. 11-28-16, cert. ef. 1-1-17
WCD 7-2015, f. 10-12-15, cert. ef. 1-1-16
WCD 3-2009, f. 12-1-09, cert. ef. 1-1-10
WCD 5-2008, f. 12-15-08, cert. ef. 1-1-09
WCD 8-2005, f. 12-6-05, cert. ef. 1-1-06
WCD 9-2004, f. 10-26-04, cert. ef. 1-1-05
WCD 2-2004, f. 2-19-04, cert. ef. 2-29-04
WCD 11-2003(Temp), f. & cert. ef. 9-22-03 thru 2-28-03
WCD 9-2003(Temp), f. 8-29-03, cert. ef. 9-2-03 thru 2-28-04
WCD 10-2002, f. 10-2-02, cert. ef. 11-1-02
WCD 11-2001, f. 11-30-01, cert. ef. 1-1-02