WorkplaceNL overfunded by $180 million
St. John’s, July 27, 2017 – The Canadian Federation of Independent Business (CFIB) is calling today for an immediate rebate of workers’ compensation premiums paid by employers in 2016. According to WorkplaceNL’s 2016 Annual Report, it has a funded ratio of 126.1, which means employers in Newfoundland and Labrador are paying $180 million more than they should have.
“WorkplaceNL should be commended for how it has been able to significantly improve its funded position,” said Vaughn Hammond, Director of provincial affairs for Newfoundland and Labrador. “Workers’ compensation premiums have a huge effect on small business owners as they face increased cost pressures in the future like growing electricity prices due to Muskrat Falls.”
WorkplaceNL’s Board of Directors have put in place a funding target of 110 per cent to mitigate volatile investment market returns, with an operating range of 110 per cent to 120 per cent. If the funded position moves outside the targeted range, employer assessment rates will be adjusted over a 15-year period to achieve the funding target. If the funded position exceeds 140 per cent, WorkplaceNL will consider one-time expenditures, which include assessment rebates.
“From the small business perspective, WorkplaceNL’s funding policy is flawed and should be revised,” explained Hammond. “The funding target of 110 per cent approved by the Board of Directors should be recognized and any monies collected beyond that target should be rebated to employers immediately so they can invest in their businesses and grow the provincial economy.”
A copy of the letter is available here.
For further information, contact Vaughn Hammond at 709-753-7745 or [email protected]ib.ca.
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.