NEER Expected Cost Factors Reduced

Have you received and reviewed your December 2011 Quarterly NEER statement?  Are you one of the firms that WSIB has adjusted your expected cost factors since your September 2011 statement?

If so, you may be wondering what does this mean and more importantly how will this affect your rebate/surcharge position in September 2012.  We have run through the following scenario with Company ABC, whose expected cost factor was reduced from 18.59% to 9.64%:

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Expected Cost Factor

Expected Costs

Max NEER Costs

Max Rebate

Max Surcharge

Dec-11

Sep-11

9.64%

18.59%

$15,306.53

$29,517.46

$61,226.12

$118,069.84

$22,856.19

$30,497.41

$10,064.55

$32,988.21

Here are three changes we noted:

1. Rebates for the 2011 accident year will be reduced by 25 percent.
2. Firm will reach surcharge twice as fast because you will have less Expected Costs to cover your NEER claim costs.
3. Firms who reach maximum surcharge could potentially be paying  70%  less prior to the Expected Cost Factor adjustment

To help you better understand your firm's position, please feel free to contact Anna Aceto-Guerin directly by email at anna@clearpathemployer.com or at the office (519) 624-0800. Clear Path also offers a first time complimentary NEER Review! Fax your December 2011 and September 2011 statements to (519) 624-0860.

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