The WCB established the annuity program to help supplement retirement income for customers receiving long-term earnings loss benefits. Read how the annuity program works, who qualifies and at what age you must use the money to purchase an annuity.
As per The Workers’ Compensation Act, 2013 (the Act), the Saskatchewan Workers’ Compensation Board (WCB) established the annuity program to help supplement retirement income of workers receiving long-term earnings-loss benefits. There is no cost to you. Your benefits are not affected since contributions to the annuity program are made in addition to these benefits.
After you have received benefits for a period exceeding 24 consecutive months, the WCB will set aside an amount equal to 10 per cent of the total earnings-loss benefits paid up to that time to provide retirement income.
The WCB will continue to set aside 10 per cent of these benefits for you as long as you are eligible to receive benefits.
When you turn 65, you must use this money, plus any interest earned, to purchase an annuity (a sum of money paid out at regular intervals). Annuities are available from life insurance companies, trust companies and other eligible financial institutions of your choice. If the amount set aside in your annuity program (including any interest it has earned) is less than the minimum stated in our policy, you can either buy an annuity or have the full amount paid out as cash. See the WCB’s Policy and Procedure Manual for the current year’s minimum.
A: The WCB sets aside funds on your behalf until you turn 65. During this time, the funds earn interest, based on the return of the WCB’s investments. At age 65, you must use these funds to purchase a life annuity.
A: A life annuity is a financial product that provides you with a monthly payment for the rest of your life. The amount of this monthly payment is based on the amount invested and the interest rates at the time the annuity is purchased.
A: Workers who receive earnings-loss benefits for more than 24 consecutive months qualify for the program.
A: There is no cost to you and your earnings-loss benefits are not affected. The contributions the WCB makes to the annuity program are in addition to your earnings-loss benefits. These contributions are equal to 10 per cent of your earnings-loss benefits.
A: The amount set aside on your behalf is paid to your estate; therefore, a beneficiary is not needed.
A: No. Legislation requires that the annuity funds cannot be accessed until age 65.
A: After receiving an annuity, you can request a supplement if the amount is lower then the minimum compensation. At age 65, if all the funds held on your behalf are less than a specific amount annually set by policy, you will have the option of taking a lump-sum payment instead of purchasing an annuity. This option is not available before age 65.
A: You can buy an annuity from a life insurance company, trust company or other eligible financial institution of your choice. We will send you more information about the annuity purchase requirements before your 65th birthday.
A: The funds you accumulate to age 65 are tax-free. After age 65, only the interest earned on your purchased annuity will be taxable.
A: If you owe the WCB for an overpayment when your annuity funds become payable, we will deduct any remaining overpayment that you still owe.
A: You will receive an annual statement showing both the principal and the interest that has accumulated. To make sure you continue to receive your statements and information about the annuity program, please notify the WCB if you change your address or go to ExpressAddress.
For more information about the program or to change personal information, please contact the WCB’s financial services department:
Contact a WCB representative to find help.
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