News Release WorkSafeNB announces 2020 rates for Firefighters’ Compensation Act Disability fund

October 8, 2019

WorkSafeNB announced today that the 2020 assessment rate under the Firefighters’ Compensation Act (FC Act) will decrease from $515 per firefighter to $465.

The rate, effective January 1, is designed to cover continuing claim costs while reducing the unfunded liability. An unfunded liability means the fund does not have sufficient funds set aside to meet its debt obligations (current and future claims costs).

 When calculating the rate, WorkSafeNB must consider:

  • The estimated cost of all claims for compensation and benefits likely to be incurred during the year
  • The estimated future cost of those claims and benefits payable during subsequent years
  • The unfunded liability
  • The amortization period as established in legislation
  • Administrative expenses

Since the FC Act and its Disability Fund were established in 2009 the funding status has steadily improved. A fully-funded status ensures the future security of benefits for New Brunswick’s firefighters and their dependants.

The table below shows how the 2020 rate was calculated:

2020 Assessment Rate for Firefighters

Forecasted 2020 claim cost including WorkSafeNB administration costs

$1,537,000

2020 portion of unfunded liabilities

$380,000

Total annual costs

$1,917,000

Total number of firefighters

4,112

Annual cost per firefighter

$465

 

WorkSafeNB is responsible for administering the FC Act. This includes the payment of benefits to firefighters or former firefighters and dependants, and levying and collecting assessments from municipalities, rural communities, and local service districts.

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