Big WSIB Changes on the Horizon
As many of you know, 2018 has been a remarkable year for the WSIB. For the first time in more than a generation the WSIB has fully retired its unfunded liability. The unfunded liability (UFL) has been a significant drag on Ontario employers by comprising about a third of the premium that employers have paid over the years. The 2019 premium rates show the significant impact that eliminating the UFL has made with premium rates going down for all but two rate groups with some rate groups having reductions of more than 46%.
The coming year will also be the last year that the WSIB assess employers for premiums under the current revenue model. Starting in 2020 the WSIB will be implementing the new funding model that will have a new classification system; a new prospective experience rating system; and a new method of assessing premiums. This new funding model comes with six new policies that will flesh out the model.
The policies are available on the WSIB’s website, and are in final form slated to come into effect on January 1, 2020. I encourage employers to take some time to read these very complex policies. They will have significant impact on how many employers are assessed premiums. For example there is a new policy on associated companies that will likely affect some employers. Do not wait for 2020 to learn how these policies will impact you. To assist employers in this, the OEA will be hosting several webinars on the funding framework policies. We invite you to attend.
Michael Zacks, Director (A) and General Counsel