WCB premiums set to tumble
Workplace safety pays dividends
Workers Compensation Board (WCB) premiums could fall to their lowest level in 30 years if the WCB’s proposed average rate for 2016 is approved by the board after consultation with stakeholder groups.
“We are pleased, very pleased, to announce the preliminary average rate for 2016 is $1.34,’’ said WCB chair Gord Dobrolowski told a rate consultation meeting in Regina on Tuesday. “Yes, you heard right — $1.34, down from $1.46 (in 2015). That’s a 12 cent or eight per cent drop.’’
“This is our lowest premium rate in three decades,’’ Dobrolowski told employers groups at the first of two rate consultation meetings. The WCB will meet with employers in Saskatoon on Wednesday.
At $1.34 per $100 of payroll, Saskatchewan is anticipated to have the fourthlowest premium rates in the country in 2016.
Dobrolowski said WCB premiums have been falling in Saskatchewan since hitting a 13-year high of $2.05 in 2004.
“Since then, we’ve had a series of decreases that have resulted in a 71-cent or 34.6 per cent drop from 2004. This continued rate reduction is because of your commitment with your employees to reduce the number of injuries in your workplace.’’
WCB CEO Peter Federko said the province has seen the rate of time-loss injuries — injuries that cause workers to lose more than a day of work — decline for 13 years in a row to 2.14 per cent in 2015, below the WCB’s target of 2.2 per cent. For 2016, WCB is forecasting a timeloss injury rate of 2 per cent.
From 2010-14, the WCB has seen 2,600 fewer time-loss injuries and payroll growth of $5.6 billion, which equates to about 60,000 additional fulltime equivalents working the province.
“So when the number of people working is increasing and the number of injuries is decreasing, mathematically, it’s just going to prove out to be a lower injury rate,’’ Federko said.
Between 2014-15, WCB is estimating 780 fewer timeloss claims. At a cost of $10,000 per claim, the saving is about $7.8 million. Similarly, the 2,600 fewer claims between 2010-14 equates to about $26 million in savings.
However, Federko noted that injury severity is increasing. Back injuries, which account for about 17 per cent of time-loss claims, represent about 20 per cent of claims costs. Two years ago, the percentage of back injuries was three per cent lower.
“So we’re seeing indications ... that more claims are made up of back injuries than two years ago, and those are very costly claims to resolve.’’
The good news is that, despite rising health care and compensation costs, the declining injury rate and growth in payroll are keeping premium rates down, Federko said. If approved, 2016 premium rates will decrease for 72 per cent of employers, while increasing or remaining the same for most of the remaining 28 per cent employers.
In addition, better-thanexpected investment income could mean up to $90 million in refunds to employers, Federko added. In 2015, employers received a $141-million surplus distribution from the WCB, based on 2014 investment returns.
At least two employer groups seemed pleased with the WCB’s proposed rates for 2016.
“This is welcome news that rates have gone down to a 30-year low,’’ said Marilyn Braun-Pollon of the Canadian Federation of Independent Business (CFIB). But, she added, the $90-million surplus should be rebated to employers.
Johns Hopkins of the Regina and District Chamber of Commerce noted Saskatchewan still has the second-highest injury rate in the country.
“There’s still work to be done there. We’ve seen some reductions (in the injury rate) in the last few years, but we need to get much better at that.’’