MN HF2994

Establishes the low retention limit for workers' compensation reinsurance at $500,000 in 2016, replacing the previous formula-based adjustment method.

Adds a new "jumbo" retention limit option equal to ten times the low retention limit, effective January 1, 2018, with automatic adjustments when the low retention limit changes.

Maintains existing high retention limit at two times the low retention limit and super retention limit at four times the low retention limit, both subject to adjustment when the low limit changes.

Grants the board authority to determine future adjustments to the low retention limit subject to commissioner of labor and industry approval, considering costs, inflation, impact on members, and reinsurance markets in other states.

Expands penalties for members choosing high, super, or jumbo retention limits who improperly transfer liability below their retention limit to other entities, with penalties up to twice the premium difference between chosen and low retention limits.