Why WorkSafeBC publishes two average rate measures
WorkSafeBC publishes two measures of the overall "average rate". The first measure is the "published base rate" which is released at the time that rates for the upcoming assessment year are announced. This is an estimate based on long term payroll growth expectations. The second measure is the "actual final collected rate" which represents the actual premiums paid by employers expressed as a percentage of their actual payrolls. These measures are published in the WorkSafeBC Annual Report (for 2007, see page 93) and are summarized as follows:
| Assessment year | 2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
| Published base rate* | $2.05 |
$2.06 |
$1.97 |
$1.90 |
$1.69 |
$1.56 |
$1.56 |
| Actual final collected rate* | $1.94 |
$1.99 |
$1.99 |
$1.89 |
$1.66 |
n/a |
n/a |
*Note: rates are expressed as a premium per $100 of assessable payroll
Here is a more in-depth description of these average rates:
Published base rate
This rate is the average base rate communicated as a news release each autumn once the Board of Directors has approved the industry base rates for the upcoming assessment year. It represents a composite of all the individual industry base rates published by WorkSafeBC averaged on the basis of estimated long term industry payroll growth trends. Once the rates for the upcoming assessment year have been approved by the Board of Directors, the corresponding published base rate does not normally change - the exception is on those rare occasions when some individual industry rates get retroactively changed after the initial approval as a result of exceptional circumstances.
Actual final collected rate
This rate is the composite of the individual industry base rates published by WorkSafeBC averaged on the basis of the actual payrolls reported by employers for the assessment year. In addition, the actual final collected rate is adjusted for:
- any net imbalance created by the experience rating plan
- any premium shortfall created by base rate transition rules
- any pre-2000 surplus or interest on that surplus credited to employers in the assessment year to reduce the net amount of premium payable to WorkSafeBC
This is equivalent to expressing the actual total collected premiums for the assessment year as a percentage of the actual total assessable payroll for that same assessment year. The most recent figure quoted for the actual final collected rate is based upon anticipated premiums and payrolls, and will in general be revised in the following year, once actual premiums have been paid and actual payrolls have been reported.