The Workers Compensation Board (WCB) has once again reduced the average assessment rate for Island employers.  The average assessment rate for 2020 will be $1.52 per $100 of payroll which is a six cent decrease from the 2019 rate.

The required average assessment rate is $1.60, based on budgeted costs and investment returns, but because of its strong funded position, the WCB was able to apply an eight cent downward funding policy adjustment to achieve a rate of $1.52 for 2020.

Also in accordance with our Funding Policy, a surplus distribution may be considered if the funding status is greater than 140%. The funding status at December 31, 2018 was 146.3 %. As a result, the Board has approved a $20 million surplus distribution to employers.  At this time a surplus distribution is not anticipated in 2020.

“Our funding policy establishes a framework to help us achieve long term financial sustainability,” said Stuart Affleck, Chair of the Workers Compensation Board. “The surplus distribution and rate decrease are measures taken to bring the funding status closer to the target range of 100-125%.”

All Island employers will be advised of their individual assessment rates in December 2019, which are based on the costs of claims and the risks of workplace injury in their industries. For more information on the assessment rate groups, please visit wcb.pe.ca/2020rates. The surplus will be distributed to eligible employers in December 2019. For more information on the most frequently asked questions related to the surplus, visit wcb.pe.ca/surplus.

The workers compensation system is a balance of employer and worker interests. Over the past few years, the WCB has introduced many enhancements in coverage for workers all while decreasing the average assessment rate. This includes the increases to the lump sum death benefit; definition to impairment expanded to include psychological impairments such as PTSD; addition of an Annuity program; Presumptive coverage for firefighters for certain cancers and heart injuries and amendments to the OHS Act and Regulations to include provisions for workplace harassment. There were also a number of recent policy changes that enhanced benefits to workers.

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