Record-low injury rates yield lower premiums

ST. JOHN’S, N.L. — Starting on Jan. 1, 99 per cent of employers in Newfoundland and Labrador will see their 2016 assessment rates decrease or stay the same. The lower assessment rates coincide with record-low injury rates, according to a statement issued on Oct. 14 by the Workplace Health, Safety and Compensation Commission (WorkplaceNL).

The 2016 average assessment rate charged to employers to cover anticipated costs of workplace injuries, return-to-work programs, prevention initiatives and the cost of administering the workers’ compensation system will be reduced by $0.25 to $2.20 per $100 of assessable payroll. 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.

At the end of 2014, the injury fund was $1.1 billion and more than 112 per cent funded. This was the first time the funding target of 110 per cent had been exceeded — a major milestone in establishing the long-term stability of the injury fund for employers and workers in the province, the statement noted. Based on the stakeholder-agreed funding policy, the surcharge may now be removed.

“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 of WorkplaceNL. “This is a credit to the cooperative management of the system by our labour 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.”

As well, the Maximum Compensable and Assessable Earnings for injured workers, starting from January 1, will increase to $62,540 — the highest in Atlantic Canada. This increase reflects a 1.5 per cent annual Consumer Price Index adjustment. Injured workers submitting new claims 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,” Tucker added.

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