Effective Jan. 1, 2016, the average assessment rate charged to New Foundland/Labrador (Canada) employers by the Workplace Health, Safety and Compensation Commission (WorkplaceNL) will be reduced by $0.25 to $2.20 per $100 of assessable payroll.
Approximately 99.3 percent of employers will see their 2016 assessment rate decrease or stay the same. The lower assessment rate coincides with record low injury rates.
The rate reduction is due to the removal of a $0.25 surcharge that employers pay to cover past unfunded liabilities in the workers’ compensation system. A surcharge has been in place since 1993.
As of the end of 2014, the injury fund was $1.1 billion and more than 112 percent funded. This is the first time the funding target of 110 percent has been exceeded, a major milestone in establishing the long-term stability of the injury fund for employers and workers in the province. Based on the stakeholder-agreed funding policy, the surcharge may now be removed.
Assessment rates are premiums paid by employers to cover anticipated costs of workplace injuries, return-to-work programs, prevention initiatives and the cost of administering the workers compensation system.
Employers will be notified of their specific rates, in writing, within two weeks. The $0.25 decrease in the assessment rate is an average. Individual employers will continue to have different assessment rates depending upon their industry and workplace injury experience.
Diligent Employers and Injured Workers Make a Difference
“For more than a decade, employers and injured workers have been diligent in their efforts to improve workplace safety in Newfoundland and Labrador and the injury rate is the lowest it has ever been,” said Ralph Tucker, chair, WorkplaceNL. “This is a credit to the cooperative management of the system by our labor and employer stakeholders. Through these progressive partnerships we are able to lower assessment rates and ensure injured workers receive fair benefits. More workers are returning home safely to their families, our ultimate goal.”
Effective Jan. 1, 2016, the Maximum Compensable and Assessable Earnings (MCAE) for injured workers will increase to $62,540, the highest in Atlantic Canada. This increase reflects a 1.5 percent annual Consumer Price Index (CPI) adjustment. Injured workers submitting a new claim whose pre-injury earnings are at or above $62,540 will be eligible to be compensated at this new limit.
“The Board is committed to continuing its philosophy of using a balanced approached to consider the needs of both injured workers and employers, while also being financially responsible with the injury fund, now and into the future,” added Tucker.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: kstack@reduceyourworkerscomp.com.
©2014 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law.
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