This week, the Yukon Workers' Compensation Health and Safety Board will issue cheques totalling $10 million to employers as part of its excess reserve rebate.
A total of 3,568 eligible employers will share the rebate, receiving a cheque based on the total assessments they paid from Jan.1 1, 2012 to Dec. 31, 2014.
“The board’s investment portfolio has performed very well,” said board chair Mark Pike. “That, coupled with positive operational results has left our compensation fund with more money than necessary to provide excellent benefits to every Yukon worker ever injured on the job.”
After consultation with stakeholders, including the Yukon Chamber of Commerce, the board decided to issue a $10-million rebate to bring the compensation fund closer to its target range. The target is a reserve fund of between 121 per cent and 129 per cent of the cost of caring for every Yukon worker injured on the job. At the end of 2014, the compensation fund was at 160 per cent.
Because of the board’s measured approach, employers will receive a total of $14 million through lower rates and the $10 million rebate by the end of 2015.
Once the fund returns to its target range, employers will pay the true cost of caring for Yukoners injured on the job. Today, they are paying less than that cost.
“The Yukon is a small jurisdiction and we must be careful to protect the fund on behalf of workers and employers,” said Pike. “This approach is designed to gradually reduce the excess reserves without significant impact to the assessment rates charged employers. However, this rebate comes after exceptional performance of our investment portfolio and, because of that, should not be considered a regular event.”
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