TORONTO, Oct. 24, 2012 /CNW/ - In order to create stable and competitive
premium rates for the future and ensure a sustainable workplace safety
and insurance system for workers and employers, Ontario's Workplace
Safety and Insurance Board (WSIB) today announced that premium rates
will increase by 2.5% for all employer rate groups in 2013. This
increased rate is a necessary step to reducing the WSIB's unfunded
liability (UFL), which has grown to $14.2 billion.
"This decision by our Board of Directors was made based on sound and
detailed actuarial and financial analysis and will enable the WSIB to
meet the government's requirement that the WSIB be 60% funded by 2017,"
said WSIB Chair Elizabeth Witmer.
To further address the UFL and ensure the sustainability of the system,
the WSIB has made operational changes and increased financial
discipline, which have resulted in positive outcomes.
"In 2011, the WSIB achieved its first operating surplus in 10 years and
so far the results in 2012 are even more encouraging," said Witmer.
At the same time, 91% of injured workers are back to work with no wage
loss within 12 months of injury. The WSIB now has one of the lowest
costs for new claims and administration among all of the provinces.
"While this premium rate increase may add costs today, the retirement of
the UFL will result in lower premiums and strengthened competitiveness
for Ontario businesses in the longer term," said Witmer.
For further information:
WSIB Media Relations