Our Funding
The annual premiums paid by employers cover all of the costs associated with the operation of the WCB. The WCB has established policies and methodologies designed to maintain stable funding that enables it to deliver benefits, programs and services to its stakeholders, while providing rate stability to employers.

One of the ways the WCB maintains rate stability is by accurately predicting the cost of future injury claims within each of the 55 industry rate codes. To do this, the WCB uses an actuarial-based rate-setting model that calculates the premiums needed, based on the injury experience within each industry rate code. The amount each employer pays is calculated as a percentage of payroll for their industry grouping. The WCB has established polices that direct the premiums collected to an Injury Fund and various Reserves to meet present and future needs.

Injury Fund
To support the WCB's long-term financial stability, the Injury Fund maintains a balance for any deficits or surpluses recorded by the WCB, that are not allocated elsewhere.

Reserve Funds
The WCB has established other reserves to protect employers against substantial premium increases in extraordinary circumstances. These funds have been established to encourage the hiring of injured workers, to smooth out the fluctuation of premium rates and lessen the impact of costs arising from exceptional situations.

These reserve funds are:

• Second Injury and Re-employment Reserve
  This reserve was established to encourage employers to hire disabled workers, either their own or other workers unable to return to their pre-injury employment. When there is a proven connection between a worker's existing disability and a new injury, part or all of the claim cost relating to the existing disability may be charged to this reserve. These claim costs will not be reflected on the participating employer's current claim costs statement.
  
• Economic Stabilization Reserve
  The Economic Stabilization Reserve is intended to ensure that sufficient funds are available to meet required benefit levels and to reduce the size of fluctuations in the average premium rate. This reserve is accessed only when the fluctuation in the average premium rate exceeds the maximum as determined by the WCB. Deposits to this reserve, and withdrawals from it, are applied equally across all rate codes.

Disaster and Occupational Disease Reserve
The Disaster and Occupational Disease Reserve provides employers with partial cost relief in the event of a disaster. As well, the reserve covers costs that could arise from occupational diseases that might develop from exposure today and result in future claims. For any single injury claim, costs exceeding ten (10) times the maximum wage rate in effect at the date of injury will be charged to this reserve. For two or more injuries resulting from any one incident, aggregate costs that exceed twenty (20) times the maximum wage rate in effect at the date of injury will be charged to this reserve. Relief may also be assigned from this reserve where the financial impact on an industry or rate group is such as to constitute a disaster, even though the costs are less than the amounts identified above. The WCB is also required by legislation to provide funding for, but not direct the operations of, Occupational Health and Safety, the Prevention Services Unit of the Department of Labour, and the Office of the Worker's Advocate.

The WCB levies an additional premium on certain industry codes to collect funds that are in turn dispersed to the safety associations representing those industries.

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