Sunday, May 26, 2024

ACA Opposes Changes to the WCB Accident Fund

On August 10, 2018 ACA sent a letter to the Worker’s Compensation Board (WCB) outlining the association’s opposition to proposed changes to the WCB funding policy governing the Accident Fund.

ACA does not support WCB’s proposal to define the Accident Fund as two distinct components: a Worker Benefit Fund and a Safer Workplaces Development Fund. ACA supports the intent to focus on an actuarially sound fully funded Accident Fund that covers current and future claims costs, and related administration and WCB services.

As ACA noted in the June consultation meeting with the WCB, the surpluses generated in 2015-2017 exceed existing investments of WCB premiums in safer workplaces. The creation of a segregated portion risks duplication with existing investments to improve safety such as the funded safety associations and the OHS Futures Fund and potentially weakens the link for employer to safely manage their worksites. It further may create an expectation of a continuous funding source and avoids the issue of funds exceeding quality applications. We believe the sustainability of the funding of the WCB Accident Fund is best maintained by managing funds as a single pool.

You can read the full letter here.