Workplace Safety and Insurance Board (WSIB) Insurance Fund Surplus Distribution Model Consultation
Bill or Act:
Workplace Safety and Insurance Act
Summary of Proposal:
In 2019, the Government commissioned an external operational review of the Workplace Safety and Insurance Board (WSIB) to examine its financial oversight, administration and the cost-efficiency and effectiveness of its operations.
The Operational Review Report, with its 25 recommendations, was released in November 2020. At the time of its release, the Government committed to consulting on the implementation of a key recommendation to distribute the WSB's financial surpluses above a certain level to employers. This concept is known as a surplus distribution model.
The report also recommended that the government should adopt a regulation that prescribes a sufficiency ratio corridor of 115 percent and 125 percent for the WSIB for the five-year period between 2020 and 2025. The sufficiency ratio is the WSIB's total net assets less its total net liabilities expressed as a percentage.
The Government would like to hear from you on the mechanics of a surplus distribution model. We would like to hear what you think should happen should the WSIB attain a sufficiency ratio of 125 percent and how the surplus funds could be distributed at this point.
Implementing this recommendation would require a legislative and regulatory change. The Government's goal is to develop a process around the distribution of WSIB financial surpluses that is transparent and predictable to WSIB stakeholders.
Analysis of Regulatory Impact:
Proposal imposes no administrative costs for regulated entities.
July 15, 2021
Comments Due Date:
August 10, 2021
Ministry of Labour, Training and Skills Development
Health, Safety and Insurance Policy Branch
400 University Avenue, 14th Floor
Toronto, Ontario, M7A 1T7