WSIB Premium Rates Headed Down
Ontario’s Minister of Labour, Monte McNaughton, announced today that the WSIB Unfunded Liability Charge will be eliminated from employer’s premiums starting January 1, 2020. This is a significant development for employers in Ontario given that the WSIB new experience rating model. commonly referred to as the New Rate Framework, will be introduced on the same date.
Under the current NEER plan, one of the key determinants of the WSIB premium rate setting was the charge for the Unfunded Liability, which was reported at $14 Billion just a few years ago. With the removal of the Unfunded Liability charge from the 2020 premium calculation, it is expected that this reduction will reduce the premium rate in each “class” under the New Rate Framework.
The New Rate Framework is a substantial change from the current NEER program. Employers with strong case management and successful return to work programs will see reduced costs, whereas those who have performed poorly under NEER (i.e. repeated surcharges over multiple years) will see a dramatic increase in WSIB annual costs.