Saskatchewan Workers Compensation Board Chairperson David Eberle recently announced that the 2011 average employer premium rate will drop by 1.2 percent to $1.61. This is the sixth decrease in seven years and the lowest average premium rate in a decade.
The decision means that over 22,000 firms will see a lower rate next year. Another 2,300 firms will see no change in their rates, and just over 15,000 firms will see an increase. The increases average 5.2 percent. (WCxKit)
Eberle pointed out that Saskatchewan is the only western province to consistently lower its average premium rate in each of the last four years.
“That reflects efforts made in workplaces across Saskatchewan to improve safety. Its a significant improvement over the rates from 10 years ago. But there is more work to be done. Well continue to push the message behind Mission: Zero and for the cultural shifts that make workplace safety as important as sound financial management to a company’s success.”
A two cent economic stabilization levy proposed for 2011 to moderate economic and investment market uncertainty will not be added to the average rate. Eberle said this is because of the optimism expressed by employers during the WCBs rate consultation meetings in October.
“We rely on employer outlook for payroll growth and our injury rate projections when we set the average rate. Both persuaded us that we would remain fully-funded even with the uncertainty and so did not need the levy at this time,” Eberle noted.
WCB Chief Executive Officer Peter Federko said the rate announcement means Saskatchewan expects to have the fourth lowest 2011 average employer premium rate in Canada.
“The average rate has dropped over 21 percent since 2004, and eight cents since 2008 alone,” Federko added. “We continue to be affordable and competitive. Our average premium rate will compare more than favorably with the rest of Canada.”
Federko echoed the sentiment of Chairperson Eberle about injury prevention.
“Keeping rates competitive is highly dependent on decreases in the number of injuries. With the second highest injury rate in the country, Saskatchewan needs the Mission: Zero call to action. There is lots of opportunity for more improvement.” (WCxKit)
Employers will receive notice of their 2011 rates in the next few days. The rates take effect Jan. 1, 2011.
Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: [email protected] .
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
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