Uninsured Employers fund

Uninsured Employers' Fund (UEF)

The UEF was established in 1994 to provide benefits to injured workers whose employers did not maintain the statutorily required workers' compensation insurance and otherwise cannot pay because of insolvency.

Money for this fund is collected by the Tax Commission from a surcharge on workers' compensation insurance premiums in Utah, in addition to an assessment to employers that are self-insured for workers' compensation. Penalties imposed against employers who fail to maintain workers' compensation insurance are also deposited to the UEF. Money collected is invested with the State Treasurer where interest is earned.

An independent actuarial review of the future liabilities is completed each year.

Employers Reinsurance Fund (ERF)

Employers reinsurance fund

The ERF pays certain workers compensation benefits to eligible workers (and their dependents) as a result of work accidents that occurred prior to July 1994. For many years, the Fund acted as a reinsurer to the commercial insurance market (1) for claimants that exceed a specific period of benefits with the private insurer or (2) to pay the liability for pre-existing impairment of workers rendered disabled by an industrial accident.

With legislation passed in 1994, the ERF discontinued acting as a reinsurer for new injuries and it now only covers injuries that occurred up to June 30, 1994.

The fund had an unfunded liability in 1994, and it has been working since that time to generate sufficient money to fund the liability. In order to meet this objective, the fund must collect more money each year than it pays out. Money going into the fund is collected by the Tax Commission from a surcharge on workers' compensation insurance premiums in Utah, plus an assessment to self-insured employers. Money that is collected is invested with the State Treasurer where interest is earned.

An independent actuarial review of the future liabilities is completed each year.

We welcome your questions or comments


Utah Labor Commission
Industrial Accidents Division

160 East 300 South, 3rd Floor
P.O. Box 146610
Salt Lake City, UT, 84114-6610
801-530-6800
In-State Toll Free 1-800-530-5090
Fax: (801) 530-6804
Email: erf@utah.gov

Industrial Accidents
 160 E. 300 S., 3rd Floor, Salt Lake City, UT 84111
(801) 530-6800 or (800) 530-5090
laborcom@utah.gov
Hours: Mon-Fri 8am-5pm