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Experience Rating — Pilot Project for the Construction Sector
2000/01/21-02
THE WORKERS' COMPENSATION BOARD OF BRITISH COLUMBIA
RESOLUTION OF THE PANEL OF ADMINISTRATORS
Re: Experience Rating — Pilot Project for the Construction Sector
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 review and approve the operating policies 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 Panel approved a new experience rating plan effective January 1, 2000;
AND WHEREAS:
The new experience rating plan provides for maximum rate modifications of a 100% surcharge and a 50% discount from the base rate of a rate group;
AND WHEREAS:
The construction industry has submitted that the above maximum rate modifications are not appropriate for that industry;
THE PANEL OF ADMINISTRATORS RESOLVES THAT:
- Contingent upon firms in the Construction Sector participating throughout the term of the pilot project in other Board initiatives and/or special programs which have the purpose of reducing the frequency and/or cost of work-related injuries, diseases and deaths, effective January 1, 2000, all firms in the Construction Sector will be put into a three year pilot project which has maximum experience rating surcharges and discounts of 33.3%.
- All other components of the new experience rating plan will apply to firms in the Construction Sector.
- During the three year pilot project, the Assessment Department will track what the assessment rates would have been for all firms in the Construction Sector if they had been subject to experience rating maximums of a 50% discount and a 100% surcharge. At the end of the pilot project, the Board will evaluate the impact of the project on the Construction Sector.
- For any rate group that is composed of classification units from the Construction Sector and at least one other sector, any additional experience rating imbalance that results from the different experience rating maximums for the Construction Sector will be accounted for through an appropriate adjustment to the base rate of the Construction Sector classification units in that rate group.
- This resolution constitutes a policy decision of the Panel of Administrators.
DATED at Richmond, British Columbia, March 16, 2000.
By the Workers' Compensation Board
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