P.E.I. WCB announces 2022 rates, surplus distribution to employers
Workers Compensation Prince Edward Island wcb
The Workers Compensation Board of Prince Edward Island has announced a reduction in the estimated average assessment rate for Island employers.
The estimated average assessment rate for 2022 will be $1.43 per $100 of payroll, which is a nine per cent or 14 cent decrease from 2021 rates.
In accordance with the board’s funding policy and considering the funding status of the WCB, a sevent cent reduction has been applied to the required gross rate of $1.50 to bring it to $1.43.
Furthermore, a $25.5 million surplus distribution will be paid to employers in 2021, which is equal to approximately 15 per cent of the board’s total liabilities (valued at $166.3 million) at Dec. 31, 2020.
A surplus distribution may be considered if the board’s funding status is greater than 140 per cent. The funding status at Dec. 31, 2020 was 155.4 per cent.
This announcement follows a decade of declining assessment rates, very strong investment returns, strong growth in the Island’s assessable payroll, a focus on injury prevention and return to work efforts and generally, an overall strong funded position and a funding policy that focuses on sustainability and minimizing volatility, while offering service and increased supports to injured workers.
“We are pleased to be able to provide stable and decreasing rates in a time where our Island economy has encountered many serious disruptions and instability in being able to project into the future,” said Jim MacPhee, chair of the Workers Compensation Board.
With a 2022 estimated value of approximate $34.0 million dollars, claim costs are the most significant cost driver considered during the annual rate setting process. Improved claim cost estimates have contributed to the decreased estimated average assessment rate of $1.43 for the 2022 year.
All Island employers will be advised of their individual assessment rates in Dec. 2021, which are based on the costs of claims and the risks of workplace injury in their specific industries and further are experience rated to the firm level. For more information on the assessment rate groups, please visit wcb.pe.ca/2022rates.
The surplus will be distributed to eligible employers in Dec. 2021.