Moderate changes to rates as Board delivers on promise to reduce excess reserves
September 10th, 2019
The Yukon Workers’ Compensation Health and Safety Board (YWCHSB) announced today that assessment rates will change moderately in 2020 as the Compensation Fund nears its target range. YWCHSB also announced that one industry has been reclassified to a higher rate group to more accurately reflect its claims costs.
Industries are assigned to one of four sectors based on their business activity. Within each sector, there are multiple rate groups reflecting costs associated with worker injuries and illness. The Services Medium rate group will see the largest increase in 2020, going up 7.1 per cent from $1.56 to $1.67. Resources and Transportation Low will experience the largest rate decrease, going down 10.3 per cent from $3.31 to $2.97. The Government rate group, which includes the Government of Yukon as well as First Nations and municipal governments, will rise 5.8 per cent from $1.56 to $1.65.
The outfitting industry has been reclassified from Resources and Transportation Low to Resources and Transportation Medium. The industry’s claims costs align more closely with this higher rate group. This reclassification ensures fairness and balance within the system. Claims costs are a major driver of assessment rates and YWCHSB continues to work with employers and workers—including the outfitting industry—on improving outcomes of return-to-work and safety management practices.
Policy requires that YWCHSB maintain a funded position between 121 and 129 per cent of total liabilities. This is to provide rate stability, protect the Fund from unforeseen catastrophic events and provide benefits to workers both now and well into the future. In 2015 the Board of Directors made a commitment to reduce excess reserves while gradually adjusting rates to reflect the actual costs of preventing disability and caring for injured workers. YWCSHB has returned approximately $60 million to employers through rebates and rate reductions. At the end of 2018, YWCHSB’s funded position was reduced to 132 per cent.
Visit our website for the full list of 2020 assessment rates and industry classifications.
“We’ve been successful in reducing our funded position towards very near target levels. We’re proud to maintain the confidence from Yukon employers and workers by delivering on this promise. Our measured and prudent approach ensures we are able to continue caring for injured workers even as we bring the premiums employers pay in line with the actual cost of the system.”
-Board of Directors Chair, Mark Pike
“The outfitting industry has had higher than expected claims costs relative to others in their rate group. The reclassification of this industry ensures that we’re appropriately representing the costs of the workers’ compensation and safety systems. It reflects our steadfast commitment to fairness and accountability.”
-President/CEO, Kurt Dieckmann