Investment of Board Funds (POL-36)

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Chapter:
FINANCE AND ADMINISTRATION

Subject:
INVESTMENT OF BOARD FUNDS

Effective Date:
December 1, 1994

Last Updated On:
August 4, 2022

REFERENCE

Workers Compensation Act R.S.P.E.I. 1988, Cap W-7.1, Section 30

Workers Compensation Board Policy, POL-136, Funding Policy

POLICY

  1. Workers Compensation Board (WCB) funds will be invested in a portfolio of investments to avoid undue risk of loss and obtain a reasonable return, according to prudent investment policies, standards, and procedures.
  2. The WCB may appoint investment advisory committees or engage investment advisory services as it considers appropriate.
  3. The WCB may enter into arrangements with a Workers Compensation organization outside the province of Prince Edward Island or with another public agency for the investment of its funds in established investment mechanisms.
  4. The WCB must be satisfied that the investment policies, standards, and procedures of a Workers Compensation organizationor public agency used as a mechanism for the investment of funds meets the requirements of Section 30 of the Workers Compensation Act.
  5. The WCB may withdraw funds from investment accounts to cover operating cash requirements.
  6. Investment returns will be reported in the WCB Annual Report in accordance with International Financial Reporting Standards (IFRS).

HISTORY

August 4, 2022 - Non-substantive changes. No amendments required.

March 1, 2016 - Policy reviewed by Director and Acting Chief Executive Officer. No changes required.

September 10, 2009 - The policy was reviewed as a result of the 60 month policy review process. No substantive changes were made to the policy during this review.

January 27, 2005 - Modified to incorporate GAAP standards with respect to reporting of investment returns and to allow the continued use of “smoothing” investment returns for the purpose setting employer assessment rates and for the development and maintenance of a Funding Strategy.

July 19, 2001 - Added statement with respect to withdrawal of funds from investment accounts.

May 18, 2000 - Board of Directors review. Amended text and format.

Board of Directors Approval Date: December 1, 1994