Skip to main content

Finding Funding Fairness in Workers’ Compensation

November 2017
Marvin Cruz, Senior Research Analyst


This report examines the funding positions of the workers’ compensation boards across the country.

At the end of 2016, the excess funds accumulated by boards totalled nearly $6.8 billion, signalling that boards may be overly cautious in their funding approach. The effect of accumulating excess funds by boards deprives employers of crucial resources that could be productively re-invested in their businesses.

The funding position of a board is typically measured as the ratio between a board’s total assets and liabilities. The report recommends a funding ratio of between 100 per cent and 110 per cent, meaning a board in excess of 110 per cent is over-funded.

To bring overfunded positions back in line, the report recommends that boards issue surplus rebates directly to employers and/or lower premiums once the 110 per cent threshold is exceeded. For a business with five employees, the rebate would range from $500 in New Brunswick to $8,615 in British Columbia.

Share this Article: Share this article on social media
Topics in this Article: Research Reports