Policy
A worker with a pre-1990 injury is entitled to a full supplement under s.147(2) if that worker would benefit from a Labour Market Re-entry (LMR) plan, and co-operates in one. If a worker is unable to benefit from an LMR plan or following completion of an LMR plan, did not increase his/her earning capacity to the extent expected, that worker may be entitled to a supplement under s.147(4). The amount of either supplement is determined by a calculation formula. Back to top
Guidelines
Transition to s.147 supplements
All workers who were in receipt of a permanent disability (PD) benefit and a supplement on July 26, 1989, under either s.45(5) of the pre-1989 Workers' Compensation Act (the Act) or s.43(5) of the pre-1985 Act, are entitled to continue to receive the supplement until the term of the supplement expires.
Full supplements expire when workers complete their vocational rehabilitation (VR) program. The supplements may be extended while the worker is on a VR program.
After a full supplement expires, workers receive a supplement under s.147(4) if there is a wage loss, and they may be considered for a supplement under s.147(2).
The WSIB treats wage top-up and work adjustment supplements differently from full supplements. Once the term of an existing wage top-up or work adjustment supplement expires, no extensions are given. Also, there are no new wage top-up or work adjustment supplements. Workers who would have been considered for one of these supplements are considered for a s.147(4) supplement.
Workers receiving supplements under s.45(7) (pre-1989 Act), are automatically given a supplement under s.147(4) when the existing supplement expires.
General eligibility for s.147 supplements
Workers injured before January 2, 1990 who receive a permanent disability benefit after July 26, 1989 may be entitled to supplements under s.147 of the pre-1998 Act.
NOTE
In claims where s.147(2) supplements are paid through January 1, 1998, the WSIB now considers VR plans to be early and safe return to work (ESRTW) programs, or labour market re-entry (LMR) plans (see 19-01-01, Overview).
In many cases, both work-related and non-work-related impairments exist in a claim. To consider a worker for a s.147 supplement, the decision-maker must ensure that the worker's wage loss is at least partially related to the work injury.
The WSIB uses the worker's earnings at the time of application for the supplement, to calculate the amount of the supplement.
s.147(2) supplements
The WSIB pays s.147(2) supplements to workers who have a wage loss, whether working or not, and
- are likely to benefit from an LMR plan by improving their earning capacity to the extent that it plus the permanent disability benefit would approximate the worker's pre-injury escalated gross average earnings (for accidents before April 1, 1985), or pre-injury escalated net average earnings (for accidents between April 1, 1985 and January 1, 1990).
Wage loss
The decision-maker determines whether the worker is experiencing a wage loss. If there is no wage loss, there is no entitlement to a s.147(2) supplement.
Benefit from an LMR plan
If the worker is experiencing a wage loss, whether working or not, the decision-maker determines if the worker is likely to benefit from an LMR plan, and to what extent.
To do so, they use the information gathered in an LMR assessment and the National Occupational Classification (NOC) to identify suitable and available business or employment (SEB) options for the worker. With the SEB identified, the decision-maker determines the post-injury earnings by averaging the entry level or mid-range wages for the unit group jobs the worker has the skills to obtain, (see 19-03-03, Determining Suitable and Available Employment or Business, and Earnings.) This earnings information enables the decision-maker to determine the degree to which a worker would benefit from an LMR plan.
Total potential earning capacity
For the purposes of s.147(2), the WSIB considers the SEB earnings representative of the estimated earning capacity of the worker. The decision-maker adds the worker's permanent disability benefit to the SEB earnings. The sum is the worker's total potential earning capacity.
To qualify for a s.147(2) supplement, the total potential earning capacity must approximate the worker's escalated pre-injury earnings.
"To approximate" means "to come reasonably close to." No mathematical standard is applied to determine if a worker approximates the escalated pre-injury earnings. The decision-maker must be satisfied that the total potential earning capacity after completion of the LMR plan approximates the worker's pre-injury earnings.
Determining approximate earnings
The decision-maker decides whether the total potential earning capacity approximates the escalated pre-injury earnings. The WSIB uses the amount used to calculate the worker's temporary benefits to assess the amount of the escalated pre-injury earnings, or the PD basis for injuries prior to April 1, 1985 (see 18-07-04, Calculating Permanent Impairment Benefits). The statutory earnings ceiling does not apply when determining whether the total potential earning capacity approximates the escalated pre-injury earnings. It only applies when calculating the amount of the supplement.
Participating in an LMR assessment or plan
Supplements can only be paid while the worker is participating in a WSIB-approved LMR assessment or plan.
Duration of s.147(2) supplement
Participation begins when the worker starts the activities of the LMR assessment or plan, and continues until the LMR assessment or plan is completed.
Worker uncooperative
If a worker could benefit from an LMR plan but is uncooperative, or if a worker fails to co-operate in an LMR plan, the WSIB cancels the plan and stops paying the s.147(2) supplement. In such cases, workers are not entitled to any further LMR assistance, (see 19-03-10, Co-operating in LMR), nor are they eligible for a s.147(4) supplement.
Calculations
Maximum amount for a worker with a pre-1985 injury
The sum of the supplement, the permanent disability benefit, and 75% of the worker's post-injury gross average earnings, cannot exceed 75% of the worker's escalated pre-injury gross earnings.
Maximum amount for a worker with a pre-1989 injury
The sum of the supplement, the permanent disability benefit, and 90% of the worker's post-injury net average earnings, cannot exceed 90% of the worker's escalated pre-injury net average earnings.
s.147(4) supplements
The WSIB pays s.147(4) supplements to workers
- who have a wage loss but are not eligible for a s.147(2) supplement, or
-
whose earning capacity, after participating in an LMR plan and receiving a supplement under s.147(2), did not increase to the extent that the worker's total potential earning capacity approximated the escalated pre-injury earnings.
The WSIB does not pay s.147(4) supplements if the decision-maker cannot determine if a worker would benefit from an LMR plan and be entitled to a section 147(2) supplement because the worker
- refuses to participate in an LMR plan
-
is uncooperative in an LMR plan, or
-
would benefit from an LMR plan but
-
has left the country
-
is incarcerated, or
-
has removed him/herself from the workforce.
Duration
The WSIB continues to pay a s.147(4) supplement until the worker is eligible for benefits under the federal Old Age Security Act. The WSIB presumes this occurs when the worker turns 65.
When workers receiving a s.147(4) supplement get close to age 65, the WSIB notifies them that the supplement will soon expire, and that they should apply for old age security benefits.
Workers may, however, establish by other evidence that they are not eligible for old age security benefits. The best evidence of this would be a formal rejection letter to an application for such benefits by Human Resources and Social Development Canada (HRSDC).
Reviews
The WSIB only reviews s.147(4) supplements
- in the 24th and the 60th month after one is allowed
-
if a provisional permanent disability benefit expires, or
-
if the worker dies while receiving the supplement.
NOTE
These reviews ignore arrears payments to July 1989. After 60 months, reviews can only take place if the worker failed to notify the WSIB of a material change that occurred before the 60-month point, or engaged in fraud or misrepresentation in connection with the claim for benefits.
The WSIB may adjust s.147(4) supplements any time the permanent disability benefit changes, given the supplement's calculation requirements.
In the case of an objection, entitlement to a s.147(4) supplement is judged based on the facts at the time of the initial decision.
Payment of multiple benefits
If the worker is receiving a s.147(4) supplement and becomes entitled to additional benefits, either in the same claim or a different claim, the WSIB continues to pay the s.147(4) supplement.
Temporary total disability benefits
If a worker is entitled to receive temporary total disability benefits under the same claim in which a s.147(4) supplement is being paid, the WSIB pays the temporary total benefits minus the amount of the permanent disability benefit and the s.147(4) supplement.
If the worker is entitled to receive temporary total disability benefits under another claim, the WSIB continues to pay the s.147(4) supplement without offsetting or reducing the temporary total disability benefits in the other claim.
Future economic loss (FEL) and loss of earnings (LOE) benefits
If a worker is receiving a s.147(4) supplement and becomes entitled to FEL benefits or LOE benefits under another claim, the WSIB continues to pay the s.147(4) supplement and the FEL or LOE benefits are not offset or reduced. In addition, workers receiving FEL benefits may be eligible for a FEL supplement.
More than one s.147 supplement (in different claims)
Workers may receive more than one s.147 supplement. If following the receipt of a s.147(4) supplement, a worker is granted a permanent disability benefit under another claim, the worker is considered for either a s.147(2) or 147(4) supplement under the other claim.
The WSIB may pay a s.147(2) and a s.147(4) supplement, or two s.147(4) supplements to one worker, but it may not pay two s.147(2) supplements to one worker.
Effect of Retirement
If a worker retires before the WSIB determines if the worker qualifies for the s.147 supplement, and the worker is still interested in pursuing employment, the worker undergoes an LMR assessment (see s.147(2)).
If, however, the worker retires after the initial s.147(2) entitlement has been determined, the WSIB does not continue to pay the supplement after the worker's retirement.
A worker may be entitled to a supplement if the worker returns to work with no earnings loss and later retires. To consider entitlement, the decision-maker must be satisfied that circumstances arising from the permanent impairment have changed. If the worker is retiring because of the elimination of a job, a worsening of the permanent impairment, or a combination of both, in addition to the increasing age of the worker, a supplement may be in order.
Workers are not provided with an LMR assessment if they are unemployed for reasons unrelated to the work injury (see 19-03-02, LMR Assessments).
Calculations
There are 2 types of maximums that affect the calculation of s.147(4) supplements. One relates to the amount of pre-injury earnings, and the other to the maximum for old age security benefits.
Maximum amount for a worker with a pre-1985 injury
The sum of the supplement, the permanent disability benefit, and 75% of the worker's gross average earnings after the injury, cannot exceed 75% of a worker's escalated pre-injury gross earnings.
Maximum amount for a worker with a pre-1989 injury
The sum of the supplement, the permanent disability benefit, and 90% of the worker's net average earnings after the injury, cannot exceed 90% of the worker's escalated pre-injury net average earnings.
Maximum amount - OAS upper limit
Section 147(4) supplements cannot be more than the amount of a full monthly benefit under s.3 of the Old Age Security Act.
Effect of Canada or Quebec (CPP/QPP) disability benefits
When a worker receives CPP/QPP disability benefits and s.147 supplementary benefits, the WSIB offsets 100% of the CPP/QPP disability benefits paid in relation to the work-related injury/disease from the s.147 supplement.
The full amount of the gross CPP/QPP disability benefits paid in relation to the work-related injury/disease and the gross post-injury earnings are used as post-injury earnings when calculating either the s.147(2) or the s.147(4) supplement.
Earnings above maximum
When escalated pre-accident average or net average earnings exceed the maximum in effect at the time of the accident, the CPP/QPP disability benefit is deducted from the maximum earnings ceiling to create a revised escalated pre-accident or net average earnings.
Application date
This policy applies to all decisions made on or after July 1, 2007, for all accidents prior to January 2, 1990.
Document history
This document replaces 18-07-10 dated March 3, 2008.
This document was previously published as:
18-07-10 dated August 1, 2007
18-07-10 dated January 3, 2007
18-07-10 dated October 12, 2004
18-01-03 dated November 30, 2000.
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References
Legislative authority
Workplace Safety and Insurance Act, 1997, as amended
Section 110
Workers' Compensation Act, R.S.O. 1990, as amended
Section 147
Workers' Compensation Act, R.S.O. 1980, as amended
Sections 24, 41
Minute
Administrative
#3, January 23, 2009, Page 470 Back to top |