The WSIB Projects that Premium Rates will soon be reduced
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The WSIB has now reduced the unfunded liability (UFL) to $3.5 billion down from $14.5 just seven years ago. They project that by 2020, it will be retired and so will the 40% of the premium dollar that goes to pay it down.
The WSIB has also aligned the retirement of the UFL with the implementation of the Rate Framework. This will give more time to improve the system, and more than 90% of the rate payers will enjoy reductions upon its implementation.
This alignment was recommended by OGCA and the Construction Employers Coalition more than two years ago, and we are appreciative that they have responded.
The rate reductions will be significant, but not all in one year. The WSIB will allow maximum decreases to allow them to build a reserve as an emergency fund if they experience difficult economic times.
It is expected that they will provide more details at the Annual meeting in September.
