WCB surplus to go to employers

The Saskatchewan Workers Compensation Board (WCB) announced Wednesday the entire $281.5-million surplus, as a result of 2015 operations, will be refunded to more than 40,000 businesses in two instalments before the end of this year, writes Bruce Johnstone

WHAT

At the end of 2015, the WCB’s injury fund, which is used to cover expected injury claims costs for the year, was 144.7 per cent funded. That surplus exceeded the 105 to 120 per cent funding policy target range, resulting in a surplus of $281.5 million. The surplus, which was caused mainly by higher-than-expected investment income, will be distributed to eligible employers in two instalments in July and December 2016. The last surplus distribution from the WCB was $141 million in 2015.

WHO GETS WHAT

Employers are eligible for the 2016 surplus distribution, if their net premiums were greater than their claims costs over a threeyear period (2012 to 2014). A three-year period was chosen to ensure employers were not disqualified based on one or two years of higher claim costs.

WHO SAID WHAT

WCB chair Gordon Dobrowolsky said the board of directors made the decision to distribute the entire surplus to employers after consulting with employer and worker representatives.

“We considered market uncertainties and investment return volatility, a funding policy review, cash flow requirements, economic uncertainty, and changes in accounting and actuarial standards, as well as the potential impacts of the Committee of Review recommendations.”

Saskatchewan Chamber of Commerce CEO Steve McLellan applauded the WCB’s move to provide more than 40,000 Saskatchewan businesses with refunds. “We encourage all businesses to reinvest this money back into their current and future safety plans. These rebates can help fund those efforts.”

Marilyn Braun-Pollon, vicepresident of the Canadian Federation of Independent Business (CFIB), also thanked the WCB for returning “Saskatchewan employers’ hard-earned money. While employers would have preferred an immediate rebate as opposed to two instalments, it’s clear the WCB listened and we commend them for rebating the entire $281.5 million in 2016.”

But the Saskatchewan Federation of Labour president Larry Hubich blasted the WCB for rebating the surplus to employers, instead of putting the money into injury prevention, education and training, and increased benefits for injured workers.

“The WCB’s decision to use excess investment earnings to issue cash refunds to employers is reckless and irresponsible. Workers, particularly those who have been injured on the job, should be the primary stakeholders and beneficiaries when it comes to the WCB. They are the ones that should have benefited from strong investment returns.”