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Section 39(1)(e)
2001/04/17-03
THE WORKERS' COMPENSATION BOARD OF BRITISH COLUMBIA
RESOLUTION OF THE PANEL OF ADMINISTRATORS
Re: Section 39(1)(e)
WHEREAS:
Pursuant to Section 82 of the Workers Compensation Act, RSBC 1996, Chapter 492 and amendments thereto (the "Act"), the Panel of Administrators ("Panel") must approve and superintend the policies and direction of the Workers’ Compensation Board ("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 39(1)(e) of the Act requires the Board to collect sufficient funds to provide and maintain a reserve for the payment of that portion of a disability enhanced by reason of a pre-existing disease, condition or disability;
AND WHEREAS:
In May 1995, the historical relief of costs project was created to deal with the application of cost relief under Section 39(1)(e) on claims where wage loss concluded or a pension was awarded after March 15, 1978 and on or before December 31, 1993;
AND WHEREAS:
In March of 1998, the Panel considered a number of issues related to the historical relief of costs project with a view to bringing finality to the project;
AND WHEREAS:
By resolution of the Panel (98/04/23-03) dated April 23, 1998 and entitled "Re: Section 39(1)(e)", the Panel provided a timeframe for employers to request cost relief on historical files;
AND WHEREAS:
By resolution dated April 23, 1998, the Panel resolved in paragraph 4:
With respect to all claims where wage loss payments concluded, or a pension was awarded, after March 15, 1978 and on or before December 31, 1993, and on which an employer makes a request in writing for the Board to consider the application of Section 39(1)(e);
(a) the Board will pay interest on any resulting refund effective from the date of the employer's request;
(b) interest on all such refunds will be paid at the same interest rate as interest paid on retroactive payments of compensation under #50.00 of the Rehabilitation Services and Claims Manual.
AND WHEREAS:
The intent of paragraph 4 was to provide for the payment of interest on all requests made before the date the resolution was approved and on all requests made after the resolution was approved;
AND WHEREAS:
The Appeal Division recently opined that there was an interpretive issue stemming from ambiguity in the April 23, 1998 policy resolution regarding paragraph 4 and that it was unable to conclude that it was intended to address applications for relief of costs made before the date of the resolution;
AND WHEREAS:
The Panel is of the opinion that policy clarification is required with regard to paragraph 4 of the April 23, 1998 resolution.
THE PANEL OF ADMINSTRATORS RESOLVES TO ADOPT THE FOLLOWING AS A POLICY CLARIFICATION OF PARAGRAPH 4 OF RESOLUTION 98/04/23-03, "RE: SECTION 39(1)(e)":
The intent of paragraph 4 of Resolution 98/04/23-03, "Re: Section 39(1)(e)", is that on historical relief of cost claims, interest on all refunds is payable from the date of the request for relief, whether the request predates the April 23, 1998 resolution or was made thereafter.
This resolution constitutes a policy decision of the Panel.
DATED at Richmond, British Columbia, May 17, 2001.
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By the Workers' Compensation Board
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| MAUREEN NICHOLLS, CHAIR PANEL OF ADMINISTRATORS |