DENVER TREASURER WANTS MORE OVERSIGHT IN WORKERS’ COMP

Denver state treasurer Mike Coffman has called for a greater degree of oversight of Pinnacol Assurance, a state-sponsored workers’ compensation company. Mr Coffman has claimed that executives of Pinnacol Assurance are paying themselves too much and that the company is exploiting tax advantages not enjoyed by private companies. Pinnacol was established by the Colorado legislature in 1915; it acts as a quasi-governmental insurer of last resort for businesses that cannot get workers’ comp cover from private insurers. Earlier this year a state audit revealed that its eight top executives received salaries, including bonuses, of between $175,000 and $419,000, up more than 150% in two years. Mr Coffman says that this is excessive for “government employees”. Mr Coffman also criticised Pinnacol’s exemption from a 1% insurance premium imposed on other insurers. The company’s ambiguous public/private status stems from 1987, when it was heavily indebted. Legislation was passed allowing it to act more like a private company, since when it has become highly profitable. If the company makes more than $250m in a year, it would no longer receive the 1% tax break, but would be free to control its own investments. Mr Coffman wants to eliminate that cap. His ally, state senator Andy McElhany, said that “despite their claims, Pinnacol is an arm of the state government and they have to be responsive to the interests of state taxpayers. These are public employees acting like high-flying corporate executives”.