CFIB calls for expanded rebates on WCB surplus funds

Hey there, time traveller!
This article was published 28/08/2024 (605 days ago), so information in it may no longer be current.

A business lobbyist is calling for legislative changes and further rebates from the Workers Compensation Board of Manitoba.

By the Canadian Federation of Independent Business’ calculation, the WCB has $381 million in excess funds that could be circulated to local enterprises.

In May, the WCB announced it would return $118 million in rebates to eligible businesses. Manitoba anticipates rebates will be given annually, through 2026, to reduce the WCB’s surplus, the CFIB noted.

“Manitoba does do a good job of getting this money back when they’re overfunded,” said Brianna Solberg, CFIB director of legislative affairs for the Prairies and northern Canada.

However, changes in the rebate process are needed, Solberg added.

The WCB distributes surplus funds by applying credits to companies’ accounts against their premiums. Businesses would be better served by getting rebate cheques, Solberg said. That way, they can “immediately invest in their business.”

The CFIB is also calling on the province to legislate the return of WCB surplus funds to employers, similar to a law passed in Ontario.

Last year, Manitoba businesses didn’t receive any rebate, Solberg noted. “We want to see this process legislated so … we don’t have to guess whether or not surplus funds are going to be coming back.”

The province has no plans of enacting such legislation, Labour and Immigration Minister Malaya Marcelino’s office said. The minister also oversees the WCB.

The board has provided rebates in five of the last six years totalling $400 million. Surplus funds can be used for redistribution, benefit enhancements, future business upgrades and investments into the compensation system, WCB spokeswoman Sarah Wallace wrote in a statement.

The goal is to ensure rate stability for employers while maintaining a sustainable system, she said.

Manitoba’s average employer premium rate is $0.95, the lowest in Canada. A business with a payroll of $1 million would pay $9,500 yearly.

“On an annual basis, the WCB board of directors considers the funded position relative to the funding target and takes a forward-looking perspective when determining whether a surplus distribution is warranted,” Wallace wrote.

The WCB has a funding policy with steps guiding its decisions, she added.

The funding target is 130 per cent. In its 2023 annual report, the WCB exceeded its target, hitting 160 per cent.

gabrielle.piche@winnipegfreepress.com