HARRISBURG – Legislation sponsored by Sen. Tracy Pennycuick (R-24) and Sen. Frank Farry (R-6) to make the Workers’ Compensation system more efficient by moving more benefit payments from paper checks to direct deposit received final legislative approval Tuesday.
Senate Bill 1232 would allow individuals entitled to compensation to request funds be deposited to an account of their choosing. It will also allow insurers to no longer offer paper checks as a payment option as long as the individual has a bank account that can accept direct deposit.
More than 95% of workers receive their pay by direct deposit.
“This legislation will help workers and cut costs,” Pennycuick said. “Injured workers will get their benefits in a faster, more convenient manner, and insurers will be able to reduce processing time and mailing costs.”
“I am pleased to have worked with Sen. Pennycuick on this legislation that will modernize the Worker’s Compensation system, benefitting both injured workers and insurers in the commonwealth,” said Farry.
The reforms were unanimously recommended by the Workers’ Compensation Advisory Council.
Senate Bill 1232 was amended in the House of Representatives and received final Senate approval this week.
CONTACTS: Matt Szuchyt (Sen. Pennycuick)
Nicole McGerry (Sen. Farry)