The Workplace Safety and Insurance Board’s (WSIB) Rate Framework Modernization (RFM) initiative has been a multi-year engagement with experts and stakeholders to address identified challenges with the current approaches related to employer classification, premium rate setting and experience rating programs.
Dating back to both the Arthurs Funding Fairness (2012) and Stanley Pricing Fairness (2014) reports, the WSIB’s most recent RFM Consultation provided a range of opportunities for stakeholders to have their views heard, ensuring that any significant modernization would be implemented gradually and in a manner that fosters stability. The WSIB has received positive feedback on the RFM Consultation approach and the proactive outreach to engage stakeholders from across Ontario. Since the launch of the RFM consultation in March 2015, over 150 working group and technical sessions were held and more than 70 stakeholder submissions were received.
On November 14, the WSIB’s Board of Directors approved the Rate Framework. In addition, it also approved, in principle, maintaining a separate premium rate for non-exempt executive officers and partners in construction, subject to further research and stakeholder engagement, as well as determining a recommended implementation approach, including an associated risk analysis.
On behalf of the Board of Directors, we would like to thank you for your ongoing support as we look towards a targeted implementation in January 2019, at the earliest.
The WSIB's objective in developing its Rate Framework was to consider changes that ensure greater fairness in setting premium rates, a more reasonable balance between premium rate stability and responsiveness, and to make it easier for stakeholders to understand and engage in the process.
From the outset, the WSIB identified revenue neutrality as a fundamental principle for the Rate Framework Modernization. This means that this new approach will not affect the total amount of premium dollars collected by the WSIB, but rather more fairly distribute the premiums collected from industries and employers.
The WSIB is committed to ensuring these changes are implemented in a manner that fosters stability. Starting in 2017, the WSIB will undertake further education and outreach efforts, including further discussion on the promotion of occupational health and safety, to ensure a broader understanding of the new approach. It will also share with each employer, how the Rate Framework would classify their operations, and provide an early indication as to each employer’s individualized journey towards their new premium rate as we move towards 2019.
The WSIB is thankful for the thoughtful engagement and input of stakeholders throughout the Rate Framework Modernization initiative and as we move towards its implementation.
For further information on the Rate Framework visit us at www.wsibrateframeworkreform.com.
President & CEO