Information
Proposal to amend the Workplace Safety and Insurance Act, 1997 to enable the distribution of surplus funds from the Workplace Safety and Insurance Fund's (WSIB) Insurance Fund
Regulation Number(s):
NA
Instrument Type:
Information
Bill or Act:
Act
Summary of Proposal:
The Workplace Safety and Insurance Board (WSIB) maintains an Insurance Fund to pay for current and future costs of workplace injury and illness claims and the expenses of the WSIB. As of June 30, 2021, the Insurance Fund is at a 119.5% sufficiency ratio. The sufficiency ratio is calculated by dividing the total net assets by the total net liabilities. The WSIB reported that it is on track to maintain full funding (i.e., at least 100% sufficiency) for the foreseeable future.
The WSIB Operational Review provided the Government with a recommendation that the WSIB be empowered to distribute surplus amounts to employers, including discretionary distribution at 115% sufficiency and mandatory distribution at 125% sufficiency. There are two primary objectives associated with this proposal:
- To distribute surpluses to employers whose premiums fund the agency.
- To improve the efficiency, effectiveness, and long-term sustainability of the WSIB.
The WSIB Operational Review provided the Government with a recommendation that the WSIB be empowered to distribute surplus amounts to employers, including discretionary distribution at 115% sufficiency and mandatory distribution at 125% sufficiency. There are two primary objectives associated with this proposal:
- To distribute surpluses to employers whose premiums fund the agency.
- To improve the efficiency, effectiveness, and long-term sustainability of the WSIB.
Analysis of Regulatory Impact:
The proposed amendments to the Workplace Safety and Insurance Act, 1997 would result in no new or incremental direct compliance costs or administrative burden on employers, in fact, it could lead to cost savings in the form of disbursements.
Distributing surpluses allows employers to reinvest in new jobs, technology, and health and safety protections. Enabling these changes is timely as the WSIB is currently in a strong financial position.
Distributing surpluses allows employers to reinvest in new jobs, technology, and health and safety protections. Enabling these changes is timely as the WSIB is currently in a strong financial position.
Further Information:
Working for Workers Act, 2021
Proposal Number:
21-MLTSD 025
Posting Date:
October 29, 2021
Comments Due Date:
November 22, 2021
Contact Address:
Ministry of Labour, Training and Skills Development
Health, Safety and Insurance Policy Branch
12th Flr,
400 University Ave,
Toronto, ON M7A 1T7
Health, Safety and Insurance Policy Branch
12th Flr,
400 University Ave,
Toronto, ON M7A 1T7