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WSIB raises its rates to tackle $12 billion in unfunded liabilities (October 04, 2010)

Toronto, ON -- Ontario's Workplace Safety and Insurance Board (WSIB) is moving forward with a Funding Review t...


Toronto, ON — Ontario’s Workplace Safety and Insurance Board (WSIB) is moving forward with a Funding Review to ensure its long-term financial stability.

The year-long Funding Review will gather expert advice and input from workers, labour and employers on a range of public policy issues relating to the WSIB’s financial future, including a plan on how to eliminate the WSIB’s unfunded liability.

To provide business with certainty and stability during the course of these consultations, and in order to help slow the growth of the WSIB’s projected unfunded liability (UFL), the average premium rate will increase by 2% for 2011 and 2012.

The UFL is the difference between the total cost of claims in the system and the funds in the system to pay for them. It has increased due to insufficient premium revenue, rising claims and health care costs and declining investment returns following the recent economic downturn. Currently the WSIB’s projected UFL is more than $12 billion.

The WSIB is also making a number of internal administrative changes that will address the UFL while improving customer service and operational efficiency. This includes a Value for Money Audit of the claims and adjudication process. These actions, along with the modest premium rate increases, will assist in balancing annual revenue with claim costs.

“We are taking important steps in ensuring that the workplace safety and insurance system is financially stable now and for future workers and employers,” said WSIB president and CEO David Marshall. “These steps, along with our continuing commitment to accountability and fiscal responsibility, will steer us toward our goal of achieving full funding, while preserving workers benefits and ultimately lowering employer premiums.”

The average premium rate will rise from $2.30 to $2.35 for every $100 of insurable earnings in 2011 and to $2.40 in 2012. This is well below the average premium rate of $3.00 in the mid 1990’s. The increase is being applied to the average premium rate, meaning more than half of registered employers will see little to no increase, while other employers in high-risk industries with a history of costly injury claims may see increases of more than 2%. Employers with good safety records will continue to be eligible for rebates under the WSIB’s incentive programs.

More details can be found on the WSIB’s website at www.wsib.on.ca.

 

 


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1 Comment » for WSIB raises its rates to tackle $12 billion in unfunded liabilities (October 04, 2010)
  1. Jane Sleeth says:

    Well well…. the debt (Please stop calling this UFL as if it is a foreign body invading the WSIB) has grown. I have to wonder if some of the debt relates to the WSIB’s exuberance in paying for “injuries” which are not work related or where there is a poor cause & effect relationship between the symptoms and the mechanism of injury; specifically musculoskeletal injuries.
    Just because an employee says their sore wrist or painful back occurred in the workplace and the GP writes down what the emplooyee dictates to them does not mean the workplace causes the injury – even using statistical probability methodology this does not compute. The boards need to stop finding new things to compensate employees for; get rid of a large part of their workforce and compensate employees who truly have bone fide serious injuries and illnesses which stem directly and unequivably from their place of employment.
    You should re-entitle this article as “How to drive employers out of Ontario during a slow and doubtful recovery”. Just my opinion. JE Sleeth OPC Inc

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