WorkSafeBC

• Sitemap
• Help

• Home
• About Us
• Contact Us
• Links
• Newsroom
• Careers

• Provide feedback

Experience Rating

99/08/24-02

THE WORKERS' COMPENSATION BOARD OF BRITISH COLUMBIA

RESOLUTION OF THE PANEL OF ADMINISTRATORS

Re: Experience Rating

---

WHEREAS:

Pursuant to Section 82 of the Workers Compensation Act, RSBC 1996, Chapter 492 and amendments thereto (the "Act"), the Panel of Administrators (the "Panel") must approve and superintend the policies and direction of the Workers’ Compensation Board (the "Board") including policies respecting compensation, assessment, rehabilitation and occupational safety and health and must:

82(A)(ii)		review and approve operating policies of the Board,
82(A)(iv)		develop policies to ensure adequate funding of the accident fund,
82(A)(v)		approve major programs and expenditures;
82(A)(vi)		plan for the future of the Board;

AND WHEREAS:

Section 42 of the Act authorizes the Board to adopt a system of experience rating in order to establish differentials in the rates between the industries or plants within a class or subclass;

AND WHEREAS:

The Policy & Regulation Development Bureau and the Assessment Department of the Board (the "Department") have consulted with stakeholders in the development of a new experience rating plan and its implementation;

AND WHEREAS:

The Department recommends that the existing experience rating plan be revised to more accurately reflect the experience of employers and create better financial incentives to reduce injuries and improve return to work initiatives.

AND WHEREAS:

Measures to address claims avoidance activities will be implemented in conjunction with the implementation of a new experience rating plan;

THE PANEL OF ADMINISTRATORS RESOLVES THAT:

1. An experience rating plan which consists of the following components is approved, effective January 1, 2000:
   1. only claim costs will be used in the calculation of an experience rating adjustment according to the following formula:

      - up to $70,000 100%, - $70,000 to $120,000 50% - above $120,000 10%

      These dollar amounts to be reviewed periodically by the Panel;
   2. three years of claim costs will be considered when calculating the experience rating. The experience for each of the three years will be given a relative weighting of 50% for the most recent year, 33.3% for the second most recent year; and 16.7% for the third most recent year;
   3. graduated participation, where the level of participation in the plan is determined by the size of the employer's base assessment;
      
   4. a maximum surcharge of 100% and a maximum discount of 50%;
      
   5. the current exclusions from experience rating set out in policy 30:50:52 of the Assessment Policy Manual will continue.
2. In order to evaluate its effectiveness in promoting prevention activities in specified industries, the Department will maintain a collateral experience rating plan for the forestry and construction industries for information purposes only the components of which will be as outlined in paragraph 1 above save and except 1(d) where the maximum surcharge for the construction industry will be 33.3% and for the forestry industry 200% and the maximum discount will be 33.3% and 50% respectively.
3. The Administration will develop and implement proposals to address claims avoidance activities concurrent with the implementation of the new experience rating plan or sooner. These proposals and the effectiveness evaluation plan shall be presented to the Panel prior to their implementation.
4. An evaluation of the experience rating plan will take place in the year 2005 or earlier where appropriate.
5. The Administration will following stakeholder consultation develop and begin implementation in the year 2000 pilot projects approved by the Panel for rate modification programs that consider factors other than claims cost. Implementation will follow an evaluation in Quarter One, 2001 with full implementation by the end of Quarter Two, 2001. The factors to be considered include claims frequency and severity, health and safety program audits, rehabilitation and return to work programs and other factors as deemed appropriate.
6. The Policy and Regulation Development Bureau and the Department will develop the policy amendments necessary to implement the new experience rating plan, and will bring them to a future meeting of the Panel for approval.
7. This resolution constitutes a policy decision of the Panel of Administrators.

DATED at Richmond, British Columbia, October 13, 1999.

	By the Workers' Compensation Board
	DON COTT, CHAIR PANEL OF ADMINISTRATORS