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WorkplaceNL’s injury fund continues to be fully funded
Thursday, June 2, 2016


ST. JOHN’S, NL – WorkplaceNL’s 2015 Annual Performance report shows its financial position continues to improve. This is the second consecutive year that the injury fund is considered fully funded, a significant turn-around from near bankruptcy in 2000.

WorkplaceNL’s funded position has again exceeded its 110 per cent funding target, increasing to 118.8 per cent in 2015, up from 112 per cent for 2014. The injury fund, which provides security for injured workers and sustainability for employers, increased from $1.1 billion in assets in 2014 to $1.2 billion in 2015.

“We remain committed to prudently managing the injury fund on behalf of workers and employers in the province,” said Elizabeth Forward, Board Member on behalf of the Board of Directors. “The injury fund remains fully funded for the second year, a significant step forward in establishing the long-term financial sustainability of the fund. We will continue to work with our stakeholders to build a system that will provide security for employers and benefits to injured workers for years to come.”

Effective January 1, 2016, the average assessment rate paid by employers was reduced to $2.20 per $100 of assessable payroll. The $0.25 surcharge that employers had been paying to cover past unfunded liabilities was removed. As well, the maximum compensable and assessable earnings (MCAE) increased to $62,540, the highest in Atlantic Canada.

This coincides with lower injury rates in the province. After holding steady for three years, the lost-time incidence rate due to workplace injury or illness had dropped to an all-time low of 1.5 per 100 workers in Newfoundland and Labrador.

Certain challenges continue to exist. As the injury rate is at a record low, WorkplaceNL remains concerned that further reductions in the injury rate will be increasingly challenging to achieve. Of particular concern is the rise in workplace violence and the slow decline in serious injuries. As well, the injury fund is dependent on market performance where fluctuations are possible.

WorkplaceNL believes that workplace injuries and illnesses are preventable, and will continue to work with its stakeholders and partners to increase occupational health and safety awareness. Its Strategic Plan 2014 – 2016 focuses on building a client-centered culture, facilitating recovering at work, preventing injury through collaboration and building financial stability in order to address ongoing challenges.

The benefit liabilities of the injury fund represents the present value of all future payments expected to be made on behalf of injured workers whose claims were accepted as of December 31, 2015, including a provision for future claims related to occupational disease. The funded position is the percentage of assets available to fund total liabilities.

WorkplaceNL’s 2015 Annual Performance Report is now available on workplacenl.ca or call toll-free 1.800.563.9000 to request a printed copy.

About WorkplaceNL

Serving approximately 13,000 injured workers and 19,000 employers, WorkplaceNL is an employer-funded, no-fault insurance system that promotes safe and healthy workplaces, provides return-to-work programs and offers fair compensation to injured workers and their dependents.

The Workplace Health, Safety and Compensation Commission is now using a new short name, WorkplaceNL.

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Media Contact:
Carla Riggs
Director of Communications
t 709.778.1590
carla.riggs@workplacenl.ca


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