The Workers Compensation Board of Manitoba (WCB) will announce this Friday, May 3 its intent to issue a surplus distribution, returning $74 million back to Manitoba employers.
Members can anticipate receiving a credit to their May 2019 account equal to 40% of their 2018 actual premium. Employers will receive their WCB Manitoba account statements confirming specific details during the week of May 13, 2019.
RCC has long advocated that employer premiums fund the workers compensation system and excess reserves should rightfully be returned to employers, and we applaud this acknowledgement by the WCB of Manitoba.
Background:
- WCB maintains a reserve fund to protect employers and workers while ensuring a stable workers compensation system. In October 2018 the Board of Directors of WCB Manitoba adopted a new funding policy, stating that when the reserve fund exceeds the target set in its policy, surplus distributions will be returned to employers.
- In making the decision, WCB considered long-term financial projections, with the main objective of maintaining rate stability while protecting the system against risk, uncertainty and market volatility.
- The distribution will be issued in the form of a credit applied to eligible employers’ accounts in May. Employers who fulfilled their payroll reporting responsibilities for 2018 and paid a WCB premium in 2018 are considered eligible to receive a share of the surplus distribution. The 40% surplus distribution will be calculated against an employer’s 2018 premiums, determined by multiplying the WCB rate by every $100 of payroll.
- Since 2014, WCB has actively managed its excess accident fund reserve through the use of annual reductions in the average assessment rate. The average rate was reduced for four consecutive years from $1.50 in 2014 to $0.95 in 2018, a 37 percent reduction. The assessment rate for 2019 remains at $0.95, the lowest rate in Canada.
Next Steps:
RCC will continue to work with WCB Manitoba and other provincial boards to ensure systems are operated fairly, efficiently and in the best interest of a stable workers compensation system.
If you have any questions or concerns, please do not hesitate to contact: John Graham, Director, Government Relations (Prairie Region) at 204-926-8624 or jgraham@retailcouncil.org.
