01.01.2025.26

EXECUTIVE ORDER 01.01.2025.26

State Employee Risk Management Administration

(Rescinds Executive Order 01.01.2008.03)

A. Program Established. There is a State Employee Risk Management Administration (hereinafter, "SERMA") established that addresses workplace safety and workers' compensation risk management and loss control throughout Maryland State government. It shall have the following structure:

(1) SERMA is administered by the Injured Workers' Insurance Fund (hereinafter, "IWIF"), as required by the Memorandum of Understanding between the Board of Commissioners of the Injured Workers' Insurance Fund and the State Treasurer's Office.

(2) Although IWIF's insurance operations were converted into Chesapeake Employers' Insurance Company by Chapter 570, Laws of Maryland (2012), Section 2, it provided that IWIF shall "remain in existence" and "shall continue to be the third-party administrator for the State's SelfInsured Workers' Compensation Program for State Employees under a contract with the State." (See Maryland Annotated Code, Labor and Employment,§ 10-102.)

(3) IWIF shall coordinate the administration of the SERMA program with the oversight of the Office of the Governor, and as needed with the State Treasurer as the Claims Administration Services Agreement administrator.

(4) IWIF shall compile, maintain, and make available as allowed by law all claims information on their Workers' Compensation database to carry out the intent of this Executive Order and provide reporting to support State initiatives.

(5) IWIF shall house a unit of SERMA Risk Management Consultants, dedicated to the State to provide occupational and safety consultative services as described in Section C.

B. Responsibilities. Each State department or designated State agency shall, work with SERMA Risk Management Consultants:

(1) Establish and maintain a proactive employee safety and health risk management program that is effective, efficient, and measurable; that has the support and endorsement of the agency head with a policy statement, and written policy and procedure directives that are communicated to all employees.

(2) Maintain the designation or appointment of a Risk Manager to carry out the intent of this Executive Order; with full-time risk managers having 3 a direct reporting relationship to the office of each department's secretary or agency head.

(3) Establish committees to review agencies' safety and occupational health programs, review injury trends and advise the applicable agency leadership on necessary corrective measures.

(4) Establish annual goals, objectives, and performance measures to address workplace safety and health, reductions in workplace illnesses, accidents, and injuries. Key measurements will be claims frequency, accident frequency, accident leave, cost analysis and timeliness of reporting incidents to IWIF.

(5) Conduct annual health and safety inspections of all facilities documenting the findings and necessary corrective measures. These inspections will evaluate the use of personal protective equipment, preventive maintenance, unsafe workplace behaviors, emergency evacuation procedures, and housekeeping issues.

(6) Conduct safety and health training for all employees. These trainings will focus and be directed towards all known workplace health and safety hazards and establish appropriate preventive procedural guidelines to protect the health and safety of employees.

(7) Promote occupational health and safety within their organization, through_ the distribution of employee safety and health informational resources such as posters, e-mail, flyers and tip sheets, or Intranet informatives.

(8) Develop proactive Return-to-Work programs, where able, involving regular communication with IWIF, as needed, to effectively place employees in transitional duty positions while recovering from work related injuries. State agencies shall utilize programs developed through agency personnel systems, if applicable.

(9) Conduct thorough and complete accident investigations that are timely and contain the highest level of detail possible. All investigations will be fact-driven and contain a root-cause analysis. Maintain all first reports of injuries, investigative reports, and documents in accordance with OSHA, MOSH, and the Maryland Workers' Compensation Act.

(10) Establish and communicate policies and procedures that enable all of its organizational units to be prepared for a variety of predictable and unpredictable emergencies.

C. Responsibilities of the SERMA program and the SERMA Risk Management Consultants, administered by IWIF are to:

(1) Support State efforts in establishing and maintaining a proactive employee risk management program that is effective, efficient, and measurable;

(2) Provide guidelines for implementing risk management programs in all agencies that are based upon best practices in both the public and private sectors;

(3) Provide technical assistance, program consultation, education and training, and statistical analyses that support State agencies in meeting their responsibilities under the provisions of this Executive Order and achieving their risk management performance goals;

(4) Make recommenda6ons to improve agency-specific programs that are not effectively reducing risks and minimizing workers' compensation costs;

(5) Communicate and coordinate as needed with the Maryland State Employee Risk Management Committee; and

(6) Provide an annual report to the office of the Governor and the Secretaries of the State Employee Risk Management Administration Committee agencies following each fiscal year end.

D. Risk Management Committee Established. There is a State Employee Risk Management Administration Committee (Committee).

(1) Membership. The Committee is comprised of the following:

(a) A representative from IWIF, appointed by its President, who shall serve as Committee Chair;

(b) A representative from the Office of the Governor, appointed by the Governor;

(c) The supervisor of the SERMA Risk Management Consultants;

(d) The SERMA Risk Management Consultants;

(e) Representatives from IWIF's Claims Administration;

(f) A representative from the State Treasurer's Office;

(g) Department risk managers of the following State Departments as named by the Department Secretaries:

i. Department of Budget and Management;

ii. Department of the Environment;

iii. Department of General Services;

iv. Department of Health;

v. Department of Human Services;

vi. Department of Juvenile Services;

vii. Department of Labor;

viii. Department of Natural Resources;

ix. Department of Public Safety and Correctional Services;

x. Maryland State Police;

xi. Department of Transportation;

xii. Maryland Transit Administration (MTA);

xiii. University of Maryland, College Park;

xiv. University System of Maryland;

xv. Maryland Occupational Safety and Health Administration (MOSH);

xvi. Department of General Services, Real Estate Office; and

xvii. Any other unit designated by the Governor

(2) Staffing. IWIF shall provide staffing for the Committee as necessary.

E. Duties. The Committee shall work in partnership with the SERMA program in IWIF to:

(1) Share with other State departments and agencies best practices in the public and private sectors for risk management and loss control;

(2) Identify available resources that would assist State agencies and their departments to continuously improve their risk management programs;

(3) Identify workers' compensation issues, and offer recommendations to the Governor's Office;

(4) Recommend initiatives to the Governor's Office that will improve workplace safety and reduce the overall costs of workers' compensation;

(5) Ensure that the SERMA program is responsive to the risk management and loss control needs of State departments and agencies as defined in Section C of this Executive Order;

(6) Plan and conduct the annual statewide SERMA Conference; and

(7) Coordinate with and provide support to the Governor's Office and State agencies in addressing workplace safety and loss control issues.

F. Meetings. The Committee shall meet at least quarterly.

G. This Executive Order on managing occupational injuries and illnesses in Maryland State Government shall be interpreted and implemented in a manner consistent with the efforts of established State health and safety regulations. Department and agency heads shall utilize existing management functions and programs to expand and improve management of risks within their respective units.

Effective Date: December 9, 2025.