WSIB Rate Framework Reform Proposal
Published on: 05/05/2015
What is the gist of it?
The WSIB has developed a proposal to overhaul how it assess and charges employer premiums. Historically, the WSIB has grouped employers operating in the same sector together and charged them a single, collective liability rate. This rate setting process charged every employer operating in the same marketplace the same rate, with surcharges or rebates applied to those companies that perform better or worse than the median target rate set for the sector – known as Experience Rating.
The WSIB Rate Framework Reform (RFR) proposes to replace the retrospective Experience Rating system with a prospective, employer-specific rate setting model. Under this new system, each company within a much wider defined sector will be assessed a class-level premium rate (accounting for WSIB Administrative costs and an unfunded liability charges), which will be combined with a company-specific premium rate adjustment, based on an average of each company's previous six-years of claims history. The result is each company within a given sector will be paying a different premium rate.
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