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WSIB Proposing Radical Changes for Employers

5/8/2015

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The WSIB recently released a paper outlining its ambitious proposals that would change the way employers are classified, how premiums are set, and integrate the various experience programs. 

WSIB Chair Elizabeth Witmer and President & CEO David Marshall, have built upon the previous recommendations in the Harry Arthurs Review and Douglas Stanley's Pricing Fairness report -- which suggested that the WSIB develop an Integrated Rate Framework. 

The Board has posted the consultation documents, executive summaries, and backgrounders on www.WsibRateFrameworkReform.com.



Some highlights among the proposed changes:
  • Replace the current NEER, CAD-7, and MAP experience rating programs into one "Employer Level Premium Rate Adjustment" process. This new system would be prospective in nature, not retrospective. Premiums would be adjusted up or down on an annual basis, removing the need for rebates and surcharges.
  • Expand employer cost liability to a 6 year window (from the current 4 year window in NEER, which was previously a 3 year window).
  • Eliminate the SIEF cost relief program, which currently reduces costs for employers with an injured worker who had a pre-existing illness or injury that contributed to or prolonged the recovery from a workplace accident.
  • Replace the current classification model with the NAICS codes. There would be 22 NAICS classes, including three construction and three manufacturing classes.
  • Companies would no longer be able to have multiple rate groups (with the exception of the temporary work sector). Employers would be classified based on their predominant business activity (determined by which activity has the greatest proportion of assessable payroll).
  • Long latency diseases (cancers, COPD, asbestos-related diseases) will continue to have their costs assigned to the class level.

Download the WSIB Consultation Paper
Time frames and consultation periods
  • Initial phase of consultations runs from April 1 - June 30, 2015
  • Phase 2 will run from Summer-Fall 2015
  • WSIB plans to hold a "What We've Heard" session in the Fall of 2015 to share the feedback of key stakeholders and participants in the consultation process

How to get involved
  • Read the materials on the Rate Reform Website: www.WsibRateFrameworkReform.com
  • Comment directly to the WSIB by email at consultation_secretariat@wsib.on.ca
  • Seek additional information from active participants in the consultation process, including the Office of the Employer Advisor (OEA)
  • Watch for updates from Clear Path or contact Anna Aceto-Guerin for more information

What do you think about these proposed changes? Share your comments below.

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