The Insurance Commissioner approved rating values and rules for a Merit Rating Plan pursuant to provisions of Act 57 of 1996, effective as of 12:01 a.m., August 23, 1996 with respect to new and renewal business only, such date having been selected to comply with Act 57.

The Merit Rating Plan is intended to grant premium discounts or assess premium surcharges to employers which do not qualify under the Uniform Experience Rating Plan. Premium discounts or surcharges under this Plan shall be based on the number of compensable employee lost-time injuries incurred by each risk during the most recent two-year period for which statistics are available.

For each risk qualified under the Plan, adjustment shall apply based on the following:

a) No compensable employee lost-time injuries - 5% discount
b) One (1) compensable employee lost-time injury - no discount or surcharge
c) Two (2) or more compensable employee lost-time injuries - 5% surcharge

The Rating Bureau will determine the appropriate Merit Rating Plan adjustment and notify the carrier.

The announcement of Merit Rating can be found in Bureau Circular No. 1335 dated August 19, 1996. The formal Merit Rating Plan can be found in Section 6 of the Pennsylvania Basic Manual.