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.
WSIB Media Relations