Through prudent management of the worker’s compensation system, and a growing culture of safety in the province, the Workplace Health, Safety and Compensation Commission is well positioned to meet the needs of all workers and employers in Newfoundland and Labrador.
Highlights & Accomplishments
Lower Rates and Higher Benefits Assessment rates for employers were lowered by $0.30 to $2.45 per $100 of assessable payroll effective January 1, 2014. This was the first time that rates were lowered since 2006, and 99.8 per cent of employers saw a decrease in their assessment rates for 2014. The rate continued to include the $0.25 surcharge to address the previous injury fund deficit. Also effective January 1, 2014, the maximum compensable and assessable earnings (MCAE) was increased from $54,155 to $60,760, consisting of a base increase of $6,000 plus a 1 per cent adjustment for the Consumer Price Index. This means that in 2014 Newfoundland and Labrador provided the highest MCAE in Atlantic Canada.
of oil in 2014.The funded position (percentage of assets available to fund its total liabilities) has also increased from 106.5 per cent for 2013 to 112.0 per cent in 2014. This is the first time the funded position has exceeded the target of 110 per cent since the stakeholder approved Funding Policy was adopted in 2009.
Average Assessment Rate
$2.45
Secure Financial Position The Commission’s financial position continues to improve, and remains the best it has been in over 30 years. The injury fund (investments), which provides security for injured workers and sustainability for employers, has increased from $1.0 billion in 2013 to $1.1 billion in 2014. The Commission’s rate of return on its investments was higher than expected at 11.6 per cent, versus 16.3 per cent in 2013, and above the target of 6.6 per cent despite the second largest ever annual decline in the price
WHSCC Annual Performance Report 2014
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As the funding target has now been achieved, the Commission may be in a position to remove the $0.25 surcharge in assessment rates for employers, while maintaining the sustainability of the fund for injured workers. As the 2015 rates have already been communicated, a decision will be made in the 2016 rate-setting exercise.
