Governance – Balancing Decisions Policy 41-012 | Effective Date: March 27, 2024

Policy 

The Board of Directors is responsible for overseeing the administration of its governing legislation and establishing the values, strategic direction, and priorities of WorkSafeNB. At the governing level of the organization, the Board of Directors makes policy decisions to leverage its strategies, advance its priorities, and manage risks to maintain system sustainability. Policies also interpret discretionary sections of legislation and communicate the Board’s expectations to WorkSafeNB staff and stakeholders.

The Board of Directors is responsible for a disciplined approach to policy decisions related to benefits to achieve a balance between the entire package of benefits available to injured workers, survivors, and dependants and the resources available to fund those benefits. In making policy decisions, the Board of Directors strives to position WorkSafeNB as a leader, providing the best possible benefits and the lowest possible assessment rates for our stakeholders.

When funding requirements are determined each year, assessment rates take into account the benefits, programs, and services that are currently provided by legislation and Board policy. To systematically plan for and prioritize benefit-related decisions, it is necessary to determine how the changes will be resourced. Resources may be moved from another benefit or increases to assessment rates may be considered.

The principles of balanced decision-making are fundamental to the Board of Directors when exercising its powers and discharging duties in the best interest of WorkSafeNB.

Interpretation

Benefit Decisions Align with the Meredith Principles 

1. WorkSafeNB administers a health, safety and compensation system that is funded by employers. Its roots are founded in the Meredith Principles, which the Board of Directors preserves with the decisions that it makes. The Meredith Principles are:

• No-Fault Compensation – Workers are eligible to receive benefits for work-related injuries or occupational diseases, regardless of fault, while workers and employers waive the right to sue.
• Collective Liability – All registered employers share responsibility for fully funding the cost of workers’ compensation insurance and for the system’s financial liability.
• Security of Payment – The system is operated to ensure its long-term stability, availability, financial security, and cost-effectiveness. Compensation benefits should be fair and reduce the financial burden of workplace injuries. Assessment premiums should be fair, competitive, and account for the full cost of the system including claims, reserves, and administration.
• Exclusive Jurisdiction – WorkSafeNB has final decision-making authority. It is not bound by legal precedent and must judge each case on its individual merits.
• Board Independence – The governing board is stakeholder-driven, autonomous, non-political, and financially independent of government or any special interest group.

Fully Funded Liability

2. When benefit-related decisions are made, the Board of Directors must make a decision about how to resource that decision. To balance the system, the Board of Directors needs to consider:

• If other benefits provided should be adjusted to pay for the new decision, or if it is appropriate to increase assessment rates.
• If WorkSafeNB is fully funded and the Board of Directors decides that benefits should be improved, then there also needs to be a corresponding decision about how to fund the improvement.
• If WorkSafeNB is fully funded and the Board of Directors decides that assessment rates are too high, then there must also be a corresponding decision about what resources to use to fund a reduction in the assessment rate.
• If WorkSafeNB is not fully funded, then the Board of Directors must make decisions to determine what benefit and/or assessment adjustments are necessary to reach full funding within fifteen years.

Intergenerational Equity

3. WorkSafeNB is committed to the principle of intergenerational equity.  This is the principle where costs of accidents are borne by the generation of employers in business at the time the accident occurred, thus securing existing benefit entitlements. The Board of Directors supports this principle in its decision-making by considering the:

• Affect on benefits already received by workers; and/or
• Impact on future assessment rates paid by employers.

Benefit Decisions

4. All decisions made regarding benefit changes whether through legislation or policy, should consider the most appropriate mix of benefits given:

• The needs of workers;
• The overall balance of the system; and
• WorkSafeNB’s goals and priorities.

5. Discretionary benefits are benefits broadly defined in legislation. It is the Board of Directors’ responsibility to decide when and how to provide these benefits to achieve the intent of the legislation and strategic goals of WorkSafeNB.

6. WorkSafeNB’s priorities are identified, analyzed, resourced, and communicated to stakeholders. Decisions by the Board of Directors that provide benefits outside the limits defined by legislation and policy may have significant consequences to the sustainability of the system.

7. The Board of Directors adheres to a disciplined policy and legislative decision-making process to balance benefits and fund the system. Should the Board introduce new priorities, outside the discipline of its planning process, it must then also consider which of the planned priorities it will defer until a time in the future when resources are available.

8. All benefit-related policy decisions take into account WorkSafeNB’s:

• Legislated mandate;
• Strategic goals and priorities established by the Board;
• Risks;
• Available resources; and
• Intended outcomes.

9. The Board of Directors maintains an informed discipline in its policy and legislative decision-making process by considering:

• Recommendations from management;
• Jurisdictional information;
• The research presented including data, literature, and best practice;
• Evidence and financial information;
• Alternatives and options, where appropriate;
• The impacts on WorkSafeNB and its stakeholders;
• The views of stakeholders, while deciding in the best interest of WorkSafeNB;
• Any additional information requested from management when needed to gain a full understanding of the issue; and
• The intent of legislation and WorkSafeNB’s strategic goals.

Stakeholder Engagement

10. In its stewardship of WorkSafeNB, the Board builds relationships with stakeholder groups and integrates their views and opinions into its decision-making process.

11. During its strategic planning and risk assessment process, the Board of Directors prioritizes opportunities to consult with stakeholders on specific legislative and policy issues. The Board of Directors also invites feedback on policies being reviewed and rate decisions.

12. The Board of Directors demonstrates transparency by regularly reporting decisions to stakeholders and communicating the rationale for those decisions.

Monitoring, Evaluation and Education

13. In fulfilling its oversight responsibility, the Board of Directors regularly evaluates decisions to ensure the health, safety, and compensation system is continuing to achieve its legislated mandate and the strategic direction established by the Board.

14. WorkSafeNB focuses its limited resources on the areas it believes will have the greatest impact on advancing its strategic goals. The Board of Directors aims to be responsive to stakeholders and allocates resources prudently by:

• Planning for the review of the benefit package;
• Re-evaluating the benefit package periodically to determine whether WorkSafeNB provides the best benefits package in comparison to other jurisdictions;
• Identifying when improvements or changes may be required to benefits either by amending legislation or through Board policy; and
• Adhering to a disciplined process for allocating resources to priorities.

15. Members of the Board of Directors support the principles and discipline of this policy by:

• Receiving education about the board’s balanced decision-making approach through new board member orientation;
• Applying the principles and approach to balanced decisions when making policy decisions that impact benefits; and
• Considering management’s analysis of how policy changes may impact the balance between providing benefits and the resources available to fund those benefits.

Previous policy

• Policy 41-012 Governance – Balancing Decisions, Release 2, effective April 26, 2018
• Policy 41-012 Governance – Balancing Decisions, Release 1, effective May 31, 2012