TORONTO – Ontario’s Government for the People and the Workplace Safety and Insurance Board (WSIB) announced today that premium rates for employers will be sharply reduced due to the elimination of the WSIB’s Insurance Fund’s unfunded liability.
“This is great news for everyone in Ontario. Employers can use these major savings to put more money back in the economy, invest in new equipment and infrastructure, and create good jobs right here in Ontario. Workers can have confidence that the WSIB has a sustainable system with enough money to pay for their future benefits,” said Laurie Scott, Minister of Labour.
By eliminating the unfunded liability, the WSIB will be able to cut the average premium rate for employers by almost 30 per cent, starting January 1, 2019. This will help employers save money, increase investment and create more jobs, resulting in a $1.45 billion injection into the Ontario economy.
“Today’s announcement is just one part of our plan to lower taxes, reduce the regulatory burden, protect and grow jobs, and send a message to the world that Ontario is open for business,” Scott said.
The unfunded liability — the shortfall between future obligations to pay injured workers and the money available to pay them — stood at $14.2 billion in 2011. Eliminating it helps ensure a sustainable and accountable workplace safety and insurance system that supports injured workers, and increased economic growth and productivity in Ontario.
A fully-funded system means that if workers are hurt on the job or develop illnesses, they will receive the benefits and services to which they are entitled, giving peace of mind to workers and their families.
“Our government is working harder, smarter and more efficiently to make life better for the people of Ontario,” Scott said. “We will continue to manage a system that reduces the burden for business while giving our workers and their families peace of mind.”