If you are an Island business who pays into WCB then you can expect a cheque in the mail later this month as the board has announced that more than $21 million will be distributed in November 2017.
Earlier this year, WCB’s annual report showed that it was once again in a position of being significantly over-funded meaning that it has more than enough money set aside to pay out claims over the long-term as well as a healthy cushion. With that in mind, CFIB formally requested that a refund or "surplus distribution" be issued to Island employers since it employers who pay the full cost of the system.
Why is there a surplus?
The funding position has grown over the past number of years as we continue to see strong investment returns. This is in addition to improved safety experience which have seen claim costs go down.
How will the surplus/refund be distributed?
The surplus distribution back to employers will total $21.4 million. This amount will be distributed to eligible employers by cheque or a credit to their WCB employer account.
Will all employers receive part of the surplus distribution?
At the time of the distribution, active employers whose accounts are current will receive a cheque. If an active employer has an overdue account at the time of the distribution, they will receive a credit on their WCB account.
Active employers, for the purpose of the distribution are defined as employers who reported 2016 actual payroll. If an employer has not reported an actual payroll for 2016, the employer will have to report the actual payroll by December 31, 2017 or will not be eligible to participate in the surplus distribution.
How will refunds be calculated?
The distribution is based on 2016 assessments. WCB will divide your base premiums in 2016 (based on the industry rate, before discounts or surcharges are applied) by the total base premiums of all eligible employers in 2016. They then will multiply this amount by the $21.4 million available for the surplus distribution.