WorkSafeNB's board of directors estimates the cost to manage the workers’ compensation system in 2018 will be $1.93 per $100 of payroll.
However, the board has taken action by revising its funding target from 110% to 100%. This allows for a reduction in the amount to be collected from employers by $0.23, resulting in an average assessment rate of $1.70. This represents a 15% increase over the 2017 rate of $1.48. The increase in the average rate is needed because of rising claim costs. The increase was mitigated, in part, by a reduction in administration costs.
Tim Petersen, WorkSafeNB’s acting president and CEO, said the organization has worked diligently to find savings in the face of rising claim costs.
“We reduced administration costs by 16% ($0.09 on the average assessment rate) while minimizing any impact on client programs and services. By further investing in technology and initiating a Lean Six Sigma program, we will optimize service delivery while achieving administrative efficiencies.”
Board chairperson Dorine Pirie said while these measures won't resolve the challenges facing the system in the long-term, the board is committed to working with stakeholders and the government to achieve long-term sustainability. The board views the 2018 rate decision as a transition to what may be required in the future.
"To balance our goal of long-term sustainability while ensuring the security of benefits for injured workers and their families, the board expects that future rate increases will be needed under current legislation. The board intends to continue its ongoing communication efforts with stakeholders to keep them informed on the evolution of the system as information develops."
Individual employers will see smaller or larger increases based on their industry classification and their own accident experience.
More information on the 2018 average assessment rate, including Frequently Asked Questions, is available at worksafenb.ca.
Media contact:
Manon Arsenault, Director of Communications
506 650-2845