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Massachusetts Construction Classification Premium Adjustment Program (MCCPAP)

Eligibility:

The program applies to employers who are eligible for experience rating and have exposure in any of the enumerated construction classifications in Massachusetts.

The Massachusetts Construction Classification Premium Adjustment Program may reduce an eligible employer's premium if the employer meets the applicable average hourly wage under the program. While the initial determination of any applicable credit is computed on a class-by-class basis, the credit (if any) will be applied to the employer's entire Massachusetts modified premium in order to facilitate the carrier's application of the credit.

Carriers are required to provide an application to any insured having a policy containing one or more of the applicable classifications. The insured is then responsible for completing the application and submitting it to the WCRIBMA. The completed and signed application must be received by the WCRIBMA no later than six months after the expiration date of the affected policy, or within one month of the time the insured received notice of the Program, whichever is later. Upon receipt of an insured's properly completed application, the WCRIBMA computes the premium credit factor, if eligible.  Construction credit applications for policies eligible for a credit may be submitted through our website MCCPAP Online Application.

The policy credit factor is applied to Modified Premium. Refer to the Massachusetts Voluntary Market Premium Algorithm, Appendix E or the Residual Market Premium Algorithm, Appendix F. The premium credit resulting from the Construction Classification Premium Adjustment Program is to be reported under the statistical class code 9046. If the credit is not available at the time of policy issuance, the carrier shall endorse the policy by use of the Massachusetts Construction Classification Premium Adjustment Endorsement (WC200403) to provide this information.

If the employer has any wrap-up policies in force during the quarter shown on the construction credit application, the employer should include the total wages paid and hours worked for the wrap-up(s) on the application for the 'primary' policy. Additionally, if the employer's 'primary' policy has multiple named insureds, the names, total wages paid and total hours worked for all classifications during the quarter being reported for each legal entity on the policy must be included on the application.

For more details, refer to the MA Construction Classification Premium Adjustment Program (MCCPAP) FAQs. For more detailed information on the calculation of the construction credit, refer to the Construction Credit Calculation effective April 1, 2014 or to the Construction Credit Calculation for credit effective dates before April 1, 2014.

For more information on this Program, refer to the Massachusetts Workers' Compensation and Employers Liability Manual, Part One, Special Programs, Massachusetts Construction Classification Premium Adjustment Program.


Program References:

April 1, 2014 - The table of credits by hourly ranges and the calculation of the experience rating offset associated with the MCCPAP calculation have been revised.  The change is in the derivation of the experience rating offset used in the calculation of the MCCPAP credit. The experience rating offset is needed to eliminate an overlap that would otherwise exist between the MCCPAP calculation and the experience modification calculation.
(Refer to Circular Letter #2236 dated March 21, 2014.)

June 1, 2002 - Class code 9533 was added to the list of eligible classifications to receive credits under the Program and class code 9529 was removed.
(Refer to Circular Letter #1892 dated May 23, 2002.)

April 1, 1999 - Three additional construction classes (5472, 5473 and 5478) were added to the list of eligible classifications to receive credits under the Program. 
(Refer to Circular Letter #1811 dated March 26, 1999 and Circular Letter #1813 dated April 6, 1999.)

February 1, 1996 - The Technical Adjustments approved January 1, 1996 were applied to new and renewal policies. 
(Refer to Circular Letter #1735 dated January 24, 1996.)

January 1, 1996 - Revisions to the Program were approved for new and renewal policies with expiration dates on or after January 1, 1996, which include: time limitations for insureds to submit applications for construction credits to the WCRIB of Massachusetts, and technical adjustments, a revised method to offset expected losses used in the experience rating calculation. Rather than offsetting the expected losses used in calculating experience rating modifications (as was done prior to January 1, 1996), the revised Program handles these offsets through a simple adjustment to the construction credits as calculated by the WCRIBMA.
(Refer to Circular Letter #1734 dated January 22, 1996 and Circular Letter #1809 dated March 17, 1999.)

January 1, 1991 - The Division of Insurance approved the Massachusetts Construction Classification Premium Adjustment Program. 
(Refer to Circular Letter #1556 dated January 2, 1991.)


Additional References
:

Circular Letter #2249 dated December 22, 2014 - Availability of Construction Credit Letters Within Manage Policy

Circular Letter #2205 dated September 21, 2012 - Online Massachusetts Construction Classification Premium Adjustment Program Application (Online MCCPAP)


ELIGIBLE CONSTRUCTION CLASSIFICATIONS:
3365 5069* 5221 5462 5508 5701 6251 8227
3724 5102 5222 5472 5509 5703 6252 9014
3726 5146 5223 5473 5538 5705 6306 9533
5020 5160 5348 5474 5545 6003 6319 9534
5022 5183 5402 5478 5547 6005 6325
5037 5188 5403 5479 5606 6204 6400  
5040 5190 5437 5480 5610 6217 7538  
5057 5213 5443 5506 5645 6229 7601  
5059 5215 5445 5507 5651* 6233 7855  

* Class codes 5069 and 5651 eliminated effective May 1, 2017.

 

 

 

 

 

 

 

 

 

 

Program Overview

 

The Workers' Compensation Rating and Inspection Bureau of Massachusetts
101 Arch Street, 5th Floor
Boston, MA 02110