Workers Compensation Board distributes $13.2 million surplus to employers
The Workers Compensation Board (WCB) of Prince Edward Island announced today that $13.2 million will be distributed to employers as part of a surplus distribution plan.
The WCB is an independent, non-profit organization funded solely through premiums charged to Island employers as well as investment earnings. It provides no-fault workplace injury and illness insurance and promotes workplace health and safety for all Islanders.
The WCB is mandated to be funded between 100-110 per cent to cover current and future costs for injured workers. Due to positive investment performance, the funded position grew to 125 per cent in 2014.
“Over the past few years, assessment rates have been reduced to respond to the surplus but the investment portfolio continued to perform well,” said Stuart Affleck, Chair of the Workers Compensation Board. “The surplus distribution provides a more immediate approach to help bring the funded position back into our target range quicker, without creating volatility in the rate.”
At the time of the distribution, active employers whose accounts are current will receive a cheque. If an employer has an overdue account at the time of the distribution, they will receive a credit on their WCB account. The distribution is based on a fair and equitable process and is based on 2014 assessments.
“This is a one-time surplus distribution based on the current funding,” said Luanne Gallant, Acting Chief Executive Officer for the Workers Compensation Board. “We continue to monitor the funded position and funding policy to ensure the Board’s financial position is secure into the future.”
The surplus will be distributed to eligible employers in November 2015.
For more information on the surplus distribution, please see FAQ.
Laura Steeves, Senior Communications Coordinator
902-894-0362 or firstname.lastname@example.org