Redistribution of $20 Million WCB surplus in PEI to lower rates for 2020

The Prince Edward Island (PEI) Workers’ Compensation Board (WCB) announced its rates for 2020 featuring an average assessment rate of $1.52 per $100 of payroll.  The 2020 rate will be a six-cent decrease from the 2019 rate.  Further details regarding rate reductions by rate groups can be found at: http://wcb.pe.ca/2020rates.  The rate groups are broad but please note that most retailers fall under rate group 102 – Sales and Professional Services.  This rate group will see its rate go from $0.88 in 2019 to $0.80 in 2020.

The PEI WCB also announced that it will redistribute $20 million to eligible employers based on stronger than expected investment returns for 2019.  Further details regarding the redistribution and eligibility can be found at: http://wcb.pe.ca/surplus.

Background:

WCB PEI continues to have a strong funded position.  In recent years, this strong position has allowed the Board to make enhancements in employee coverage while also reducing rates.

Per Board funding policy, a redistribution of the funding surplus must be considered if the funding status is greater than 140%.  The funding status at December 31, 2018 was 146.3 %, thus, the Board made the right decision to distribute $20 million back to the employers who fund the system.  Eligible employers should expect to receive their share of this redistribution in December 2019.

At this time a surplus distribution is not anticipated in 2020.

The decrease in the average assessment rate and in the rate for the retail rate group does not mean that all employers will experience a rate reduction.  Employer experience ratings play a significant role in determining the rate for individual employers.  Furthermore, the announcement of a surplus redistribution does not mean that all employers will receive a share of the redistribution.  Eligible employers must have reported actual payroll for 2018 and their WCB account must be in good standing.  However, most Prince Edward Island employers should see a reduction in their assessment combined with a share of the funding redistribution.

Next Steps:

Retail Council of Canada (RCC) will continue to work with PEI retail employers and the PEI WCB to ensure that the province’s workers’ compensation system remains sustainable and fair to both employers and workers. 

If you have any questions or concerns, please don’t hesitate to contact: Jim Cormier, Director (Atlantic) at:  jcormier@retailcouncil.org or (902) 422-4144