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WSIB giving back $1.5 Billion to safe employers

WSIB giving back $1.5 Billion to safe employers

Ontario’s safe employers are set to share in a pool of premium rebates of up to $1.5 billion as Workplace Safety and Insurance Board (WSIB) surplus funds are returned for the first time. This is in line with recommendations made after an operational review of the agency in 2020. For decades WSIB was carrying a large deficit in its claims-to-revenue ratio, but previous governments ordered the agewncy to get its financial house in order by adjusting fees paid by employers. Historically, there had been political interference in WSIB setting appropriate rates. This rebate will give 300,000 businesses back approximately 30 per cent of their annual premium payments, helping create new jobs and allowing for bigger paycheques for workers.

The surplus distribution will only be provided to safe employers, who will receive their rebates starting in April. For a business with 80 to 125 employees, this could mean receiving $28,000 to reinvest in their business and workers.

“Ontario businesses are paying the lowest average premium rate in more than 20 years,” said Grant Walsh, Chair of the WSIB. “With solid financial management we can give this rebate to businesses at a time when they need it most while protecting coverage for people injured at work.”

This distribution comes only four years after the elimination of the board’s historic unfunded liability. Today, the WSIB is in its strongest financial position in its history and, as of September 30, 2021, has $6.4 billion in reserve. WSIB has adopted a formula that once revenue exceeds 115 percent of claims liability that the surplus funds are paid back to employers.

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