Workers Compensation Board’s Experience Rating Program Changes (Effective January 1, 2022)
Changes will soon come into effect for the Workers Compensation Board’s Experience Rating Program. The Experience Rating Program offers a financial incentive to employers to invest in safety and work disability prevention programs by adjusting assessment rates based on their claims cost history.
There are two main changes to the Experience Rating Program:
- Previously, the program was limited to employers who have paid at least $3,000 in total WCB assessments over three years. We will now include all employers in the experience rating program in order to promote a culture of safety in both large and small workplaces.
- The maximum surcharge for employers was moved into closer alignment with other jurisdictions by adjusting the order in which steps are applied to calculate their annual rate adjustment.
The new enhancements will encourage safety and proactive prevention of work disability, expand access to more employers and will see an adjustment to the formula used to calculate rates to limit the negative impact on small employers.
The changes are a result of an extensive program review to ensure it is effective, fair and easy to understand. As a result of the review, there are additional recommendations under consideration that could be introduced in the next phase.
The above changes to the Experience Rating Program will come into effect January 1, 2022. To read more, check out the Frequently Asked Questions on the WCB website.
Source: Workers Compensation Board of PEI