Workers Compensation Board of Prince Edward Island

Employers Assessment Rates Announced for 2018

October 31, 2017

The Workers Compensation Board (WCB) has once again reduced the average assessment rate for Island employers.  The average assessment rate for 2018 will be $1.60 per $100 of payroll which is a ten cent decrease from the 2017 rate.

The key driver of assessment rates continues to be the costs of workplace injuries. Reduced rates demonstrate a positive trend in safety performance for the majority of Island workplaces.


Every year the WCB establishes the average employer assessment rate to cover the current and future costs for injured workers. Based on the actual costs to the system, the required average assessment rate would be $1.69, but because of its strong funded position, the WCB was able to apply a 9 cent downward funding policy adjustment to achieve a rate of $1.60 for 2018.

 

Due to positive investment performance over the past several years, the funded position has continued to grow. At the end of 2016, the funded position was 138 per cent. As per the WCB’s funding policy, the Board has approved $21.4 million to be distributed to employers as part of a surplus distribution plan.

“Assessment rates have been reduced over the past few years to respond to the surplus but the investment portfolio has 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, without creating significant volatility in the rate.”

“The workers compensation system is a balance of employer and worker interests. In addition to the rate reductions for Island employers, the Workers Compensation Board has also introduced many improvements for workers” said Luanne Gallant, CEO for the PEI Workers Compensation Board. “This includes the expansion of coverage for psychological conditions like PTSD, the expansion of  the pension replacement benefits policy to recognize employer sponsored RRSP’s, increased coverage for medications, and increasing benefits for travel related expenses for workers.”

 

In June 2017, the Board introduced a dedicated resource to focus on service excellence. The new Service Quality Coordinator position provides leadership and guidance to enhance service quality to WCB clients. The Board has also committed to beginning consultations with Island employers and workers this Fall, to explore opportunities to enhance benefits and services.

All Island employers will be advised of their individual assessment rates in December 2017, which are based on the costs of claims and the risks of workplace injury in their industries.

 

The surplus will be distributed to eligible employers in November 2017. For more information on the surplus distribution or assessment rates, please visit wcb.pe.ca.

 





Media Contact:
Laura Steeves, Senior Communications Coordinator
902-894-0362 or lsteeves@wcb.pe.ca