MBiz

35 MBiz | may 2016 WORKERS COMPENSATION BOARD OF MANITOBA 2016 Following a comprehensive review of our rate model in 2014, the WCB has begun phasing in changes to the way we calculate your premiums. Some of these changes have already been made while others will be phased in over the next four years. T he rate model changes respond to the unique needs of different sized employers, reduce rate volatility, provide increased protection through collective liability, and balance the rate impact of preventing injuries with the impact of controlling claims after an injury has occurred. One of the first adjustments that has begun is the first phase of the narrowing of risk category ranges. This restricts how much your premium can move above or below the category average. For all employers, the top of the boundary has been reduced from 200 per cent to 120 per cent. For small and medium employers, the lower boundary has risen from 40 to 30 per cent. By raising the lower boundary, those who are at or near the bottom of the range will see slightly higher premiums. The benefit, however, is that it will lead to enhanced shared liability, as well as protection against the potential of a single claim drastically driving up premiums. "While increased protection costs slightly more for some small and medium employers, our strong financial stewardship has contributed to a healthy reserve surplus, which allows us to cushion the impact on those employers by lowering the average assessment rate," says Alice Sayant, Vice President, Assessments, Innovation and Technology. The other transition that has begun this year is reducing how quickly rates can rise and fall in any given year. They are now capped at a maximum of 15 per cent upwards or downwards. This will reduce volatility by regulating how much rates are allowed to go up or down in one year and also protect against large rate increases. "The new rate model is designed to be more responsive to the differences among small, medium and large employers," says Sayant. "Ultimately, the most effective ways for Manitoba employers to reduce their WCB costs is by improving health and safety at their workplaces, and strengthening their return to work programs." Further transitional changes will be phased in over the coming years until the new assessment rate model is fully implemented by 2020. We'll continue to provide you with ongoing updates on these changes as they evolve. For more information, visit wcb.mb.ca and click on Employers, or contact Assessment Services at 204-954-4505 or toll free at 1-855-954-4321, extension 4505. Balance & Fairness IN THE RATES YOU PAY

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