Workers' Compensation benefits are paid from five funds.
Accident Account – This fund pays time-loss benefits directly to injured workers to partially compensate for lost wages. The fund also pays one-time awards for injuries that cause permanent damage, such as loss of a finger. Only employers pay premiums to fund this account.
Accident Reserve Account – This fund is frequently called the Pension Reserve Fund. It pays benefits to permanently disabled pensioners and survivors of workers who died as a result of workplace injuries or illnesses. This includes pensioners and survivors from self-insured employers. Revenues for this fund are provided out of the Accident Account and from self-insured firms.
Medical Aid Account – This fund pays for the cost of injured workers' medical treatment and vocational rehabilitation services. Revenues for this fund are provided by equal contributions from employers and employees.
Supplemental Pension Account – This fund provides cost-of-living adjustments to workers receiving temporary and permanent total disability benefits. The revenues for this fund come from employer assessments, payroll deductions from workers and penalties associated with DOSH violations.
Second Injury Account – This fund is used to pay pension costs for permanent total disabilities that result from a combination of a pre-existing condition and a new injury. Revenues come from employer premiums and from self-insured firms.