November 7, 2022
The Workers Compensation Board (WCB) of PEI is pleased to announce a 4.2% reduction of its estimated average assessment rate for Islander employers for 2023. This brings the 2023 rate to $1.37, down from $1.43 in 2022.
Assessment rates are set annually by the WCB Board of Directors and are calculated per $100 of assessable payroll. As of January 1, 2023, the maximum assessable earnings (MAE) will be $65,000. The MAE is the maximum amount of earnings an employer would pay premiums on per worker.
Based on the funding status as of December 31, 2021, the Board of Directors also approved a $22 million surplus distribution to employers. The surplus comes as a result of investment returns which fluctuate from year to year. Surplus distribution is considered on a yearly basis by the Board of Directors.
“The WCB is proud to contribute to the fair compensation of injured workers while balancing financial sustainability for employers,” said Jim MacPhee, Chair of the Workers Compensation Board. “It is with this balance in mind – the needs of workers and employers – that while rates are decreasing, we are also pursuing legislative changes this fall that would enhance benefits for injured workers and their families.”
The rate reduction is made possible by strong investment returns in 2021, growth in the Island’s assessable payroll, a focus on injury prevention and return to work efforts, and generally, a funding policy which focuses on sustainability and minimizing volatility. The strong funded position of the WCB creates the opportunity to pursue benefit enhancements while continuing the trend of reduced employer assessment rates.
All Island employers will be advised of their individual assessment rates in December 2022. These rates are based on the cost of claims, the risks of workplace injury in their specific industries, and the assessment rates by industry group. For more information on rate assessments by industry groups, please visit http://wcb.pe.ca/2023rates
The surplus will be distributed to eligible employers in December 2022. For more information on the most frequently asked questions related to the surplus, please visit http://www.wcb.pe.ca/surplus
Benefit enhancements put forward by the WCB include a variety of measures meant to alleviate the financial impacts of injuries and fatalities on Islander workers and their families. The proposed enhancements are currently being considered by the Legislative Assembly of PEI. For more information on benefit enhancement, please visit https://bit.ly/3fKpRNe
Source – WCB PEI