Eligible employers to receive $141 million of excess surplus
REGINA, SK – Today, the Saskatchewan Workers’ Compensation Board (WCB) announced that cheques and credits totaling $141 million will be distributed by mail to employers this week as part of the excess surplus distribution first announced in May.
Letters were sent on Friday, July 17 to employers who are receiving a credit to their account. Cheques will be mailed to the remaining eligible employers this week. All eligible employers are expected to have received their portion of the excess surplus by the end of the month.
Chairperson Gordon Dobrowolsky announced in June that employers would receive 100 percent of the excess surplus. Dobrowolsky said, “The WCB has an investment portfolio that performed well in 2014 resulting in positive investment earnings. The WCB funding policy targets a funding position of 105 to 120 percent. By December 31, 2014 our funding, due to positive investment returns, grew to 132.2 percent exceeding the upper threshold of the Board’s funding policy.” As a result, the WCB Board approved the distribution of the excess funded position to employers.
Employers are eligible for the 2015 distribution if their net premiums were greater than their claims costs over the three-year period from 2011 to 2013. A three-year period was chosen to ensure employers were not disqualified based on one or two years of higher claim costs. The amount of the distribution that each firm receives was determined based on their 2013 base premiums because 2013 is the most current year of assessed actual payroll.
The WCB’s funded position is greatly impacted by the WCB’s investment performance which fluctuates depending on world economic activity. The last similar surplus distribution from the WCB was in 2001 based on the 2000 funded positon and the funding policy.
Carolyn Van der Veen – WCB Director, Communications
1-800-667-7590 ext. 4386